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Aug 15 (Reuters) – Consulting firm KPMG and the Center for

Automotive Research in Michigan released a report this month

about how close the industry is to rolling out self-driving

cars. They see the first such vehicles hitting showrooms in

2019, with a more developed infrastructure by 2025.

However, KPMG and CAR said the implications of a totally

driverless car that doesn’t crash would be huge:

* Automakers cut weight from cars and trucks as crashless

cars do not need to be made with as much reinforced steel or as

many safety devices like airbags. That would lower vehicle

costs, speed up vehicle development time and boost fuel

efficiency.

* Automated cars would drive in tighter packs because

computers would control their speed and spacing. That would mean

smaller roads were necessary and result in the elimination of

shoulders and guardrails, leading to a significant reduction in

the $75 billion spent annually on roads, highways and other

infrastructure.

* With computers controlling the cars, driving would be more

efficient and thus faster, leading to less congestion on the

roads. Fuel consumption would decline and companies that rely on

just-in-time delivery could reduce inventories even further.

* Automated cars also would allow for the elimination of

traffic and road lights in many cases. That would slash energy

use drastically.

* Driverless cars would mean a change in the way drivers are

insured, and could even end the need for car insurance.

* Hospitals would lose more than two million crash victims

sent annually to U.S. emergency rooms.

* Crashless cars would mean auto repair shops see fewer

damaged cars, meaning they would need to shift their business

model to serving the aftermarket needs of existing cars that

lack autonomous driving systems.

* Steelmakers would have to adjust to a world where cars use

less of their product.

* State and local governments would have to adjust to the

loss of traffic fines, possibly reducing their police forces.

Governments might seek to replace some of that lost revenue;

perhaps with infrastructure usage fees.

* Less expensive, driverless cars would open ownership to

new audiences like younger generations or even the blind, but

they also could lead to wider vehicle sharing that would slash

global sales.

* If vehicle sharing expanded, cars could be summoned as

needed and people could pay for mobility services as needed

instead of owning a vehicle.

* Autonomous transportation could eliminate the need for and

cost of high-speed trains.

* Vehicle sharing could keep vehicles in more constant use,

reducing the need for parking lots that take up a lot of land in

cities.

* Lighter, easier-to-build cars could open the auto industry

to new rivals using a model like Apple’s, where a

company designs and markets a product but outsources its

construction.

* A connected, driverless car network would require security

from hackers and would raise privacy concerns with many

consumers.

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(Reporting by Ben Klayman in Detroit; Editing by Leslie

Gevirtz)