Northwest Arkansas Democrat-Gazette

Proposal puts burden on owners

California DMV could limit liability of self-driving carmakers

- MICHAEL LIEDTKE

SAN FRANCISCO — California regulators are embracing a General Motors recommenda­tion that would help makers of self-driving cars avoid paying for accidents and other trouble, raising concerns that the proposal will put an unfair burden on vehicle owners.

If adopted, the regulation­s drafted by the California Department of Motor Vehicles would protect these carmakers from lawsuits in cases where vehicles haven’t been maintained according to manufactur­er specificat­ions.

That could open a loophole for automakers to skirt responsibi­lity for wrecks, injuries and deaths caused by defective autonomous vehicles, said Armand Feliciano, vice president for the Associatio­n of California Insurance Companies. For instance, manufactur­ers might avoid liability if the tires on self-driving cars are slightly underinfla­ted or even if the oil hasn’t been changed as regularly as manufactur­ers suggest, he said.

“When is the last time you followed everything that is listed in your car manual?” Feliciano said.

The California DMV declined to comment on its proposed regulation­s because they’re still being finalized. Determinin­g liability for self-driving cars is just one of the many hurdles that still must be addressed as dozens of automakers and technology companies expand their tests of robotic vehicles cruising public roads scattered across the Uinted States. Some of these companies are hoping to deploy their self- driving vehicles in ride-hailing services and eventually sell them to consumers within the next few years.

As biggest testing ground for self-driving cars, California is being viewed as a bellwether for how other states might sculpt their regulation­s down the road.

The section addressing the limits of automakers’ liability adopts much of the wording proposed in an April 24 letter to the DMV from Paul Hemmersbau­gh, formerly chief counsel for the National Highway Traffic Safety Administra­tion and now chief counsel for the GM division overseeing self-driving cars.

Consumer Watchdog, an activist group frequently critical of business interests, believes Hemmersbau­gh plied the connection­s he made at the California DMV while working at the National Highway Traffic Safety Administra­tion to insert the clause that could make it easier for self-driving carmakers to avoid liability.

“It is the result of the ongoing and troubling federal revolving door between the National Highway Traffic Safety Administra­tion and the auto industry,” Consumer Watchdog officials wrote in a letter sent last week to the DMV and the head of the transporta­tion overseeing the agency.

Under current law, automakers can still be held liable for faulty equipment or other flaws in vehicles that require a human driver, even if the owners haven’t followed all the maintenanc­e instructio­ns.

That would change if the DMV’s proposed regulation­s go on the books as is, warned the Consumer Attorneys of California, a profession­al associatio­n of trial lawyers.

“This language creates a dangerous ‘moral hazard’ where manufactur­ers are encouraged to create unreasonab­le or impossible maintenanc­e specificat­ions to shift the burden onto (self-driving car) consumers or the public at large for technologi­cal failures,” the trade group wrote in its Oct. 25 comments to the DMV.

GM spokesman Laura Toole lauded the “transparen­cy” of the DMV’s process. Dozens of parties also submitted comments and recommenda­tions, leaving it to the DMV’s staff to decide which to include in the agency’s proposed rules, she said.

In his April 24 letter, Hemmersbau­gh linked his recommenda­tions to concerns that self-driving carmakers might be held responsibl­e for all vehicle problems “without taking into account the acts of intervenin­g parties and other factors that contribute­d to an incident.”

Self-driving cars are being touted as safer alternativ­e to vehicles operated by humans who drive drunk or get distracted. But wrecks are still bound to happen, and some are likely to be caused by equipment defects, said Jacqueline Serna, legislativ­e attorney for the Consumer Attorneys of California. And when that happens, she said, it should be left to the courts to draw the lines of liability.

“The courts have dealt with new technology in the past and they are equipped to do it again,” Serna said.

The issue could end up in court if the DMV doesn’t revise the current wording of its regulation­s. Consumer Watchdog says it will sue if the current regulation­s are approved and insurance trade groups say they may take legal action, too.

 ?? Detroit News/JOSE JUAREZ ?? In this June photo, a self-driving Chevrolet Bolt EV that is in General Motors Co.’s autonomous vehicle developmen­t program appears on display at GM’s Orion Assembly in Lake Orion, Mich.
Detroit News/JOSE JUAREZ In this June photo, a self-driving Chevrolet Bolt EV that is in General Motors Co.’s autonomous vehicle developmen­t program appears on display at GM’s Orion Assembly in Lake Orion, Mich.

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