Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • ITEC
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Latex
    • Coronavirus
    • Executive Action
    • Government/Legal
    • Opinion
    • Technical Notebooks
    • International Elastomer Show
    • Women in Tire & Rubber
    • HEXPOL Sponsored Content
    • Goodyear recognized by Lockheed Martin as 'elite supplier'
      EV tire advancements to help secure future
      Lambillotte: Only question on AVs is timing
      CAR official says EV future brighter than autonomous
    • ETRMA: COVID-19 pummels European tire markets in 2020
      New systems solutions advance the sustainability of automotive weatherseals
      3D mapping, navigation from Conti, others on cusp of mainstream
      The new One: Nokian unveils all-season passenger tire
    • ETRMA: COVID-19 pummels European tire markets in 2020
      R&D, Group 1 oils shift keeps Nynas busy
      The new One: Nokian unveils all-season passenger tire
      USW opposes Taiwan tire makers' dumping counterproposal
    • 3D mapping, navigation from Conti, others on cusp of mainstream
      R&D, Group 1 oils shift keeps Nynas busy
      Motion Industries rebrands as 'Motion'
      Proto Labs to buy e-commerce company 3D Hubs for $280 million
    • New systems solutions advance the sustainability of automotive weatherseals
      Arburg: 2021 Technology Days in June will run for 6 days
      R&D, Group 1 oils shift keeps Nynas busy
      Arburg boosts electric machine business with AMK acquisition
    • Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
    • WCCO task force navigates pandemic, expands communications
      ASTM cancels April meetings as COVID-19 continues impact
      Paycheck Protection Program funding reopens Jan. 15
      Detroit Auto Show canceled; alternative event being planned for September
    • Tero Peltomaki named Cimcorp CEO
      Synthomer CEO MacLean to step down by early 2022
      ARP Materials adds technical sales manager
      Jack Murphy joins Akron Dispersions
    • USW opposes Taiwan tire makers' dumping counterproposal
      India decides against extending carbon black duties
      Hot topics at virtual CES: AVs, air taxis and drones
      Paycheck Protection Program funding reopens Jan. 15
    • Editorial: Against a backdrop of turmoil, M&A deals give glimpse of normalcy
      Column: Pandemic looms over everything in life, business in 2020
      Column: Lessons from the 2020 Best Places to Work
      Editorial: Silicone hit hard by pandemic, expected to bounce back
    • Advancements in synchronous drive belt design for industrial and consumer markets
      Effects of multiple repurposed materials for reinforcements of standard rubber compounds
      Impact of peroxide blends on the cure rate and aged properties in HNBR
      Techniques to detect long chain branching in polymers
    • Rubber Division seeks abstracts for 200th Technical Meeting
      WORD panelists say evolution, authenticity keys to success
      IEC keynote: Communication key to logistics
      IEC speaker: Specialized elastomers may reduce spread of life-threatening pathogens
    • WORD panelists say evolution, authenticity keys to success
      New video celebrates women in rubber industry
      ITEC panelists say women can thrive in tire industry
      Rubber Division planning second Women of Rubber event
    • Sponsored By HEXPOL Compounding
      Faster Access to Your Polymer Compounding Experts Around the World
      Sponsored By HEXPOL Compounding
      Take a walk thru a HEXPOL Lab
      Sponsored By HEXPOL Compounding
      HEXPOL offers a unique selection of High Performance Elastomers to match your application requirements
      Sponsored By HEXPOL Compounding
      It’s what you can’t see that makes the Difference at HEXPOL
  • Blogs
    • Products
    • Wacky World of Rubber
    • New Products: Nova thinks outside the box with sealing tech
      New Products: MonTech introduces 1,500 kN lab press
      New products: 3M introduces new durable, pliable medical adhesive
      New Products: Lanxess launches energy-efficient PU elastomer
    • Wacky World of Rubber: How Trelleborg, teens sealed a spot in the world record book
      Wacky World of Rubber: Of chicken and feet, but not chicken feet
      Wacky World of Rubber: Time to go mattress shopping
      Wacky World of Rubber: Because nothing says football like 'frunk' shrimp
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • ETRMA: COVID-19 pummels European tire markets in 2020
      New systems solutions advance the sustainability of automotive weatherseals
      3D mapping, navigation from Conti, others on cusp of mainstream
      The new One: Nokian unveils all-season passenger tire
    • Proto Labs to buy e-commerce company 3D Hubs for $280 million
      Ace Products & Consulting partners with Wallace Instruments
      Safic-Alcan extends distribution agreement with Momentive
      Momentive aims to grow silicone presence in Asia-Pacific region
    • Bridgestone bets on guayule as alternative natural rubber source
      Synthomer CEO MacLean to step down by early 2022
      Jack Murphy joins Akron Dispersions
      Synthomer optimistic, raises earnings forecast
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Sponsored Content
    • White Papers
    • Sponsored By HB Chemical
      The Company Behind the Inventory
      Sponsored By French Oil Mill Machinery
      Process Improvement, Cost Reduction with Custom Press Systems
    • Sponsored By Uncountable Inc.
      Cooper Standard deploys lab informatics platform to synchronize R&D
      Sponsored By Elkem
      LSR Selectâ„¢: A solution to improve your financial impact in molding applications
      Sponsored By HEXPOL Compounding
      Peroxide Cureable Silicone Injection Molding
      Sponsored By HEXPOL Compounding
      Understanding and Selecting Performance Additives for Rubber Compounding
  • Data
  • Events
    • RPN Events
    • RPN Livestreams/Webinars
    • Industry Events
    • Past Events
    • ITEC Library
    • International Silicone Conference Library
    • 2021 Healthcare Elastomers Virtual Edition
      2021 Rubber in Automotive Virtual Edition
      2020 International Silicone Conference Virtual Edition
      2020 ITEC Virtual Edition
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
October 26, 2018 02:00 AM

Opinion: Can suppliers handle autonomous-era exposure?

Daron Gifford
Plante Moran
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Daron Gifford

    Like all new technologies, autonomous cars are under constant scrutiny. Companies that make them are beginning to understand this and learning to accept the risks.

    Parts makers, however, have not.

    For those that make the parts that go in the autonomous cars, now is the time to prepare — protect your brand, address product liability questions and start thinking about the financial implications of your parts being in autonomous vehicles.

    This year's fatal crash in Arizona involving a pedestrian and a self-driving Uber was believed to have been the first but certainly won't be the last death attributed to an autonomous car, and the implications for parts makers have yet to be determined.

    For instance, while the preliminary investigation determined that Uber had turned off some of the self-driving technology, a sensor manufacturer could still find itself in the spotlight and in legal trouble, similar to what happened to Japan's Takata Corp. after a number of fatalities were linked to its airbags.

    Few, if any, car parts makers are prepared for the kind of negative media onslaught that hit Takata, which ultimately filed for bankruptcy last year. That's because few small parts suppliers have ever faced the kind of negative attention that comes with headline-making accidents.

    Self-driving technology will likely change that.

    Considering the inevitability of accidents involving autonomous cars, all parts makers should create crisis management plans to prepare for potential fallout. These plans are a routine part of business at large high-profile corporations elsewhere in the transportation sector, such as auto manufacturers and airlines, but are less common at smaller supplier companies.

    Assumed liability

    The issue of self-driving cars and safety may be, to some in the industry, surprising because autonomous vehicles are often touted as the solution to the traffic accidents currently caused by the error-prone humans behind the wheel. But safer or not, even autonomous vehicles cannot yet entirely eliminate the risk of injury or death on the road, especially in the complex, real-world environment of other vehicles and pedestrians.

    And that fact will dramatically change the relationship between auto makers, parts suppliers and the end users who "drive" these vehicles.

    By the very nature of its technology, a self-driving car and its parts suppliers will likely take on the liability that in many cases in the past would have been attributed entirely or in part to the driver in the case of an accident.

    The risks drivers protect themselves against by purchasing auto insurance will eventually fall to the underlying makers of the vehicle, requiring them to take additional steps to address their own liabilities.

    This could be in the form of new corporate insurance policies for auto makers and parts suppliers, or even new financial requirements to set aside reserve funds in the event of legal action. Whatever happens, this represents a new world of risk for suppliers.

    Get ahead

    But there is much opportunity here as well.

    As parts makers become increasingly involved with autonomous vehicle testing, they will be better able to perfect their components alongside the auto makers that are using them. This more proactive approach to liability is a better use of resources than simply reacting to a media firestorm after disaster strikes and should lead to better system and component designs over time.

    Another way for parts makers to get ahead of the curve would be investing in an area that few are exploring currently: data analytics.

    As software becomes a larger part of vehicle operation, decisions on everything from technical issues to ethical dilemmas will be based on artificial intelligence, machine learning and advanced algorithms.

    For parts makers, this represents an opportunity to finally leverage the power of data to improve their products and develop new functionality.

    Like it or not, the autonomous age is changing the game for the entire automotive industry. This is the time to prepare for this change and lay the groundwork for growth.

    Daron Gifford is the automotive industry consulting leader at the accounting firm and consultancy Plante Moran in Detroit.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • ITEC
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Latex
      • Coronavirus
      • Executive Action
      • Government/Legal
      • Opinion
      • Technical Notebooks
      • International Elastomer Show
      • Women in Tire & Rubber
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Sponsored Content
      • White Papers
    • Data
    • Events
      • RPN Events
      • RPN Livestreams/Webinars
      • Industry Events
      • Past Events
      • ITEC Library
      • International Silicone Conference Library
    • Advertise
    • DIGITAL EDITION