GM's self-driving car. GM's self-driving car. |

Autonomous vehicles and connected cars are sure to shake the foundations of commerce. And, according to the results of a new survey, that impact looks likely to put regulations in the throes as well.

Law firm Foley & Lardner this week released its “2017 Connected Cars & Autonomous Vehicles Survey” looking at both sensor-laden “connected cars” that can read and interact their environment and “autonomous vehicles,” better known as self-driving cars. Polling 83 executives from the technology, automotive and vendor-supplier industries, the survey identified regulatory changes that will likely be important in developing the connected cars and autonomous vehicle industry. Despite most regulatory action at the state level, 62 percent of those polled sought nationally consistent rules from the U.S. Department of Transportation around tech-enabled vehicles.

“Right now, some of the regulation is happening at the state level. Most of it has been in the way of testing, enabling on-road testing where you don't necessarily have to have a driver if you satisfy the different requirements,” said Steve Hilfinger, co-chair of Foley's manufacturing industry team and partner in the Detroit office.

This year alone, 33 states have proposed legislation around self-driving cars, noted the website for the National Council of State Legislators. At present, 21 states have adopted regulations around autonomous vehicles. Hilfinger noted that with an interstate highway system, it will likely be difficult for the tech-enabled auto industry to deal with state-level regulatory differences.

“It'd be very difficult to have a patchwork of 50 different state laws. I think you're going to see some federalization and rulemaking by the [National Highway Traffic Safety Administration (NHTSA)],” he said.

Indeed, NHTSA this week announced it would seek industry input around the regulatory issues hindering autonomous vehicle development. The agency report noted that it hoped to identify “unnecessary regulatory barriers” to autonomous vehicle development.

That's not to say that states don't have a regulatory voice for their residents. “The states will still have roles to play in terms of their laws and operators of vehicles. I think there will be shared regulation by the federal government and the states. I think the states will ultimately focus more on safe operation,” Hilfinger said.

But the disruption from tech-enabled cars extends beyond regulations. Eighty-five percent of those polled in the Foley survey saw tech-enabled cars disrupting traditional supply chains in the market. And this disruption, Hilfinger pointed out, comes from some unlikely industry partnerships. “There will be new forms of collaboration, nontraditional partners. You have technology firms coming and contracting with automotive firms in new ways,” he said.

These collaborations have already gotten underway. “You're seeing more and more investments in companies, sometimes outright acquisitions in tech companies,” Hilfinger said. “That will help the companies and the industry accelerate their tech development and bring on a management team.” Last week, for example, Delphi Automotive acquired Boston-based autonomous vehicle startup nuTonomy in a $450 million deal.

“They're learning from each other,” Hilfinger said of the tech and automotive industries, noting that Michigan's automotive industry and Silicon Valley's technology entrepreneurship are increasingly adopting bigger stakes in one another's environments. “You need both, and you need a lot of talent within your company to make this work. You can hire the talent, you can acquire the talent, you can invest in a joint ventures,” he said.

GM's self-driving car. GM's self-driving car. |

Autonomous vehicles and connected cars are sure to shake the foundations of commerce. And, according to the results of a new survey, that impact looks likely to put regulations in the throes as well.

Law firm Foley & Lardner this week released its “2017 Connected Cars & Autonomous Vehicles Survey” looking at both sensor-laden “connected cars” that can read and interact their environment and “autonomous vehicles,” better known as self-driving cars. Polling 83 executives from the technology, automotive and vendor-supplier industries, the survey identified regulatory changes that will likely be important in developing the connected cars and autonomous vehicle industry. Despite most regulatory action at the state level, 62 percent of those polled sought nationally consistent rules from the U.S. Department of Transportation around tech-enabled vehicles.

“Right now, some of the regulation is happening at the state level. Most of it has been in the way of testing, enabling on-road testing where you don't necessarily have to have a driver if you satisfy the different requirements,” said Steve Hilfinger, co-chair of Foley's manufacturing industry team and partner in the Detroit office.

This year alone, 33 states have proposed legislation around self-driving cars, noted the website for the National Council of State Legislators. At present, 21 states have adopted regulations around autonomous vehicles. Hilfinger noted that with an interstate highway system, it will likely be difficult for the tech-enabled auto industry to deal with state-level regulatory differences.

“It'd be very difficult to have a patchwork of 50 different state laws. I think you're going to see some federalization and rulemaking by the [National Highway Traffic Safety Administration (NHTSA)],” he said.

Indeed, NHTSA this week announced it would seek industry input around the regulatory issues hindering autonomous vehicle development. The agency report noted that it hoped to identify “unnecessary regulatory barriers” to autonomous vehicle development.

That's not to say that states don't have a regulatory voice for their residents. “The states will still have roles to play in terms of their laws and operators of vehicles. I think there will be shared regulation by the federal government and the states. I think the states will ultimately focus more on safe operation,” Hilfinger said.

But the disruption from tech-enabled cars extends beyond regulations. Eighty-five percent of those polled in the Foley survey saw tech-enabled cars disrupting traditional supply chains in the market. And this disruption, Hilfinger pointed out, comes from some unlikely industry partnerships. “There will be new forms of collaboration, nontraditional partners. You have technology firms coming and contracting with automotive firms in new ways,” he said.

These collaborations have already gotten underway. “You're seeing more and more investments in companies, sometimes outright acquisitions in tech companies,” Hilfinger said. “That will help the companies and the industry accelerate their tech development and bring on a management team.” Last week, for example, Delphi Automotive acquired Boston-based autonomous vehicle startup nuTonomy in a $450 million deal.

“They're learning from each other,” Hilfinger said of the tech and automotive industries, noting that Michigan's automotive industry and Silicon Valley's technology entrepreneurship are increasingly adopting bigger stakes in one another's environments. “You need both, and you need a lot of talent within your company to make this work. You can hire the talent, you can acquire the talent, you can invest in a joint ventures,” he said.