Nissan to produce a self-driving car by 2020

Nissan has took the challenge to launch a car that can drive itself by 2020, provoking a host of car-making rivals and industry newcomers such as Google. The commitment thrusts the Japanese car-maker to the front of a congested race to bring the technology to roads, but will require it to navigate regulatory and legal challenges.

“We’re making a pledge that we will bring the first autonomous car to market by 2020,” said Andy Palmer, executive vice-president. “2020 is the first time that we will have a car that behaves like the cars we have on the track here in California, which means you can sit in the driver’s seat, fold your arms, cross your legs and basically the car will take you where you want to go.”

Some brands and suppliers in the industry such as Mercedes-Benz and Continental have been developing automated technologies for years, but Google shocked many car companies into action in 2010 when it unveiled technology that later enabled a nearly-blind man to drive around in its test vehicle.

The difference Nissan wants to introduce is to be the first to officially commit a car-maker to a timeline to produce a fully autonomous car, and the first to target mass-market, volume models.

“Our industry is always shaped by events that go on around us . . . Google is really a confirmation that we’re on the right track,” said Mr Palmer in an interview. “This is a commitment to bring the technology across the range, that gives us volume.”

Aside from reducing the high costs of the new technology to be able to make it viable in Nissan’s low-cost, small hatchbacks, governments and insurance companies must first agree on policies to regulate these vehicles amid doubts, for example, about who is responsible if a self-driving car is involved in an accident.

“The knowns are, we have the technology, we have the capability and we have a cost structure that we think will work,” said Mr Palmer. “The unknown is the regulatory framework. And that is going to change country by country. It is going to be easier to deploy in some countries than others. That’s the intangible.”

Nissan shares sank 2.58% in last trading session, while being up 35% for one year period.