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by Alain L. Kornhauser, PhD Professor, Operations Research & Financial Engineering Director, Program in Transportation Faculty Chair, PAVE (P Autonomous Vehicle Engineering Princeton University Presented at Inaugural Automated Vehicle Summit @ Fort Monmouth October 3, 2014 Opportunity to Create Well-paying Jobs, Save Lives, Injuries and Family Disruptions, and Make Money by Establishing a World-class Center for Research, Certification and Commercialization of Automated Vehicles (aka SmartDrivingCars)
Transcript

by

Alain L. Kornhauser, PhD

Professor, Operations Research & Financial Engineering Director, Program in Transportation

Faculty Chair, PAVE (P Autonomous Vehicle Engineering Princeton University

Presented at

Inaugural Automated Vehicle Summit @ Fort Monmouth October 3, 2014

Opportunity to Create Well-paying Jobs,

Save Lives, Injuries and Family Disruptions, and Make Money

by Establishing a World-class Center for

Research, Certification and Commercialization of Automated Vehicles (aka SmartDrivingCars)

Quality of Life 101: Important Elements

• Environment – Clean air, water, …

• Employment – “High Quality” Jobs

– Correlated with Crime/Personal Safety

• Mobility

– Safety, Efficiency, Equity, Comfort, Convenience, …

• Main Premise: – Facilitating the Adoption of Smart Driving Technology:

• Creates “High Quality” Jobs, Improves Personal Safety

• Improves Safety, Efficiency, Equity, Comfort, Convenience, …

• Improves the Environment

NOT: Future Vehicle Technologies

More Likely: Future Vehicle Technologies

More Likely: Future Vehicle Technologies

Early Estimate of Motor Vehicle Traffic Fatalities in 2012

We really Need to get to

Even though Safety Doesn’t Sell, Some Automakers are Leading the Way

Up to today: Primarily concerned with safety standards

associated with Crash Mitigation (air bags, seat belts, crash worthiness, …)

http://orfe.princeton.edu/~alaink/SmartDrivingCars/Videos/Subaru%20EyeSight_Commercial60secCrashTest.mp4

Preliminary Statement of Policy Concerning Automated Vehicles

Extending its vehicle safety standards from Crash Mitigation to Crash Avoidance with Aim at Full Self-Driving Automation

Level 0 (No automation) The human is in complete and sole control of safety-critical functions (brake, throttle, steering) at all times.

Level 1 (Function-specific automation) The human has complete authority, but cedes limited control of certain functions to the vehicle in certain normal driving or crash imminent situations. Example: electronic stability control

Level 2 (Combined function automation) Automation of at least two control functions designed to work in harmony (e.g., adaptive cruise control and lane centering) in certain driving situations. Enables hands-off-wheel and foot-off-pedal operation. Driver still responsible for monitoring and safe operation and expected to be available at all times to resume control of the vehicle. Example: adaptive cruise control in conjunction with lane centering

Level 3 (Limited self-driving) Vehicle controls all safety functions under certain traffic and environmental conditions. Human can cede monitoring authority to vehicle, which must alert driver if conditions require transition to driver control. Driver expected to be available for occasional control. Example: Google car

Level 4 (Full self-driving automation) Vehicle controls all safety functions and monitors conditions for the entire trip. The human provides destination or navigation input but is not expected to be available for control during the trip. Vehicle may operate while unoccupied. Responsibility for safe operation rests solely on the automated system Smar

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Preliminary Statement of Policy Concerning Automated Vehicles

What the Levels Deliver:

Levels 1 -> 3: Increased Safety, Comfort & Convenience

Level 4 (Driverless Opportunity) : Efficiency, Equity Revolutionizes “Mass Transit” by enabling the

provision of mobility without incurring a Labor Cost

There is Fundamental Value Delivered and Need for Research, Certification and Commercialization

throughout the evolution from Level 1 through Level 4

Intelligent Drive (active steering ) BAS-Plus Active Lane-Keeping Assist (braking not steering )

Volvo Truck Emergency braking

http://orfe.princeton.edu/~alaink/SmartDrivingCars/Videos/2014%20E-Class%20Commercial%20--%20Hard%20to%20Imagine%20--%20Mercedes-Benz.mp4

http://orfe.princeton.edu/~alaink/SmartDrivingCars/Videos/MB_Clown_Commercial.mp4 http://orfe.princeton.edu/~alaink/SmartDrivingCars/Videos/MB_Commercial_Grim_Reaper.mp4

Why New Jersey?

• Observation: – Other States are have begun to jump on this…

• California & Google’s Self-Driving Car Initiative – Turned to focus investment on intelligence automation of the individual vehicle

» letting the infrastructure to be optimized for the conventional driver.. Brilliant!!

• Enables “Start small; grow fast”

• Florida: Automated car takes test drive on Selmon Expressway

• Michigan: University of Michigan to build $6.5M track to test automated cars in Ann Arbor

• Texas TTI Developing New Automated and Connected Transportation Test Bed

• California NASA, Google announce lease at Ames Research Center Ames

• Action Item: – Get New Jersey and the NJ/NY/PA Region nvolved by Leveraging the Ft. Monmouth

Facility. Create the Job, Improve mobility safety and the environment. Create the specifications and certifications for Automated Collision Avoidance Technology and eventually driverless vehicles.

NASA, Google announce lease at Ames Research Center Ames http://www.nasa.gov/centers/ames/pdf/255793main_June.08.Agram.smallfile.pdf

Mercedes-Benz sends autonomous automobiles onto the USA's most extensive testing ground

http://www.cnbc.com/id/102049263

Why New Jersey?

• Observation: – NJ Transit and many private companies operate one of the most extensive

bus transit systems in the nation • The MTA and SEPTA also operate extensive bus transit systems

– Average Nationwide Bus Casualty & Liability Expense in 2011 = $8,069/Bus

• Action Item: – Create the specifications and certifications for Automated Collision

Avoidance Technology for buses so as to substantially reduce the expected Bus Casualty & Liability exposure of NJ Transit and the other bus operators in the region and around the country.

This suggests a very favorable business opportunity for Bus transit Companies NJ’s and the Regions Bus (and Truck) Operators have vested fiduciary and societal interests in contributing to the achievement of this action item.

Why New Jersey?

• Observation: – New Jersey is the home of NAHQ of:

• Mercedes, BMW, Subaru, Jaguar, Volvo & Ferrari

• Action Item: – Create an environment that is conducive for these companies

(and others) to successfully: enhance, test and accelerate the adoption of their versions of SmartDrivingCars This suggests a very favorable business opportunity for Car Companies NJ’s Car Manufacturers thus have vested fiduciary and societal interests in contributing to the achievement of this action item.

Why New Jersey?

• Observation: – New Jersey is the home to major Wireless Communications companies:

• Verizon Wireless, Qualcomm (regional office)

– Only persons not engaged in driving should be consuming the services of these companies in a car.

– > 80% of the time there is only one person in a car. • Communication services to this “80%” market should be restricted to times

when “NHTSA Level 3” automation is available.

• Action Item: – Create the SmartDrivingTechnology that is certified for “NHTSA Level

3” automation for more & more Cars and “Lane-Miles” This creates an evermore favorable business opportunity for Wireless Service Providers. NJ’s Wireless Service Providers thus have vested fiduciary and societal interests in contributing to the achievement of this action item.

Why New Jersey?

• Observation: – New Jersey is the home to major Insurance:

• Munich Re NA, NJ Manufacturers, Chubb Group, Prudential, Selective

• Action Item: – Create the Research, Certification & Commercialization

Environment : To Develop SmartDrivingTechnology (SDT) such that:

PriceSDT < NetPresentValue { Expected {AccidentLiability w/o SDT }

- Expected {AccidentLiability w SDT }} This suggests a very favorable business opportunity for Insurers NJ’s Insurance Companies thus have vested fiduciary and societal interests in contributing to the achievement of this action item.

Autonomous Car Benefits to New Jersey

Amount Item Units

-50% Reduced chance of dying in a car accident Per Collision Avoidance (Level 2) car

~ 1 Lives Saved Per 1,000 cars equipped with Level 2 (= # new cars sold each day in New Jersey)

~300 Lives Saved Per year in NJ (Widespread Level 2 adoption)

-50% Reduced chance of a collision Per Collision Avoidance (Level 2) car

~ 1 Injury Avoided Per 15 cars equipped with Level 2

~20,000 Injuries Avoided Per year in NJ (Widespread Level 2 adoption)

>$125 Self insurance payments Per year per NJ driver

>$250 Insurance discount Per year per NJ driver

$1.25B Reduced Insurance Claims Per year in NJ (Widespread Level 2 adoption)

-50% Reduced Energy Widespread autonomousTaxi Deployment

-50% Reduced Pollution Widespread autonomousTaxi Deployment

Elimination Road Congestion Widespread autonomousTaxi Deployment

5X increase Ridership on NJ Transit Widespread autonomousTaxi Deployment

1,000 Well-paying jobs Directly connected with the Center

100,000 Well-paying jobs Created around the Center to implement Commercialization of the technology

Terrible News! Claims are going through the roof!

2011 Nationwide Bus Casualty and Liability Expense

Source FTA NTD

Casualty and Liability Amount

Vehicle-related

$483,076,010.

Total Buses

59,871

Sub-Total Casualty and Liability Amount Per Bus

$8,069/Bus/Year

The Cost of Installing an Active Collision Avoidance System

on a Bus Could be Recovered in as Little as One Year Through Reductions in

Casualty and Liability Claims

The Initial Project:

Princeton University (with American Public Transit Association (APTA), Greater Cleveland Transit, and

insurance pools from WA, CA, OH & VA)

Focused on

Research, Certification and Commercialization of

SmartDriving Technology for Buses

Pending $5M Grant from

Federal Transit Administration

Why Fort Monmouth?

• Observation:

– Ft Monmouth may well be one of the most hospitable sites for those with a vested interest in SmartDrivingTechnology to advance their intentions.

• Action Item:

– Create a Testing & Certification Environment for use by Those with a Vested Interest to collaboratively transition their products from Research to Full Commercialization

The “Visionaries” FMERA:

Vision for World-Class Advanced Technology Center @ The Fort

Princeton University: Facilitating FMERA’s Vision with a World-Class

Center for Research, Certification and Commercialization of SmartDrivingCars (&Trucks & Buses) (RCCS) (pronounced “R Sis”)

The Team

The “Players” to be “Drafted”

The “Venue” The McAfee Center and The Fort’s Roadways

The “Coaching Staff” CARTS

Corporation for Autonomous Roadway & Transit Systems

Automakers Suppliers Facilitators Insurance Universities Public Sector

Mercedes Benz (HQ-NJ) Continental Bertram Capital NJ Manufacturers Princeton NJ DMV

BMW (HQ-NJ) Bosch Verizon Munich Re Monmouth NJ Transit

Subaru (HQ-NJ) Delphi AT&T Ins. Inst. for Hwy Safety CCNY Reg. 2 URC NJ DoT

Ford Texas Inst DCH AutoGroup State Farm NJIT NJTPA+DVRPC

Volvo autonomouStuff Qualcomm Progressive U of Maryland FHWA+FTA

Jaguar MobilEye VisLab Geico Rutgers Monmouth County

Mo

dal

Dim

ensi

on

Sector Dimension

Commercialization Certification Research

Tran

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Center’s Activity Matrix

Vehicle Bays

McAfee Office Building ~ 100,000sf

Support Buildings

Princeton University Center for Research of SmartDrivingCars (CRS)

at Fort Monmouth McAfee Complex

1250’ x 865’ ~ 25.8 acres

Princeton University Center for Research of SmartDrivingCars (CRS)

at Fort Monmouth Exclusive Use Roadways Area

~ 60 acres

Vehicle Bays

McAfee Office Building ~ 100,000sf

Support Buildings

Princeton University Center for Research of SmartDrivingCars (CRS)

at Fort Monmouth Mixed Use Roadways

½ The Fort ~ 1 sq. mile

Near-term Schedule/ Milestones

Date Item Notes

May 7, 2014 Creation of Prospectus

May 14, 2014 Meeting with the FMERA Staff & Committees

Week of June 2 Meeting of Potential Founding Members MB, BMW, Subaru, Verizon, Volvo, NJM, Munich Re, NJ DoT

Later in June Public Announcement of Center’s existence

Monday, June 30 Launch of the Membership Recruiting beginning with the creation of a plan

Tuesday, July 15 Major Unveiling & recruiting event @ TRB Automated Vehicle Conference

Cocktail reception @ SF Airport Hyatt

Friday Oct 3 Inaugural Automated Vehicle Summit McAfee Center, Fort Monmouth

Center Membership (Revenue $ in thousands)

Patron Principal

Collaborator Supporting

Collaborator Sum Revenue

($) Note

Founder's Fee (one-time) $ 250 $ 100 $ 25

Annual Contribution $ 250 $ 100 $ 25

Founding Members 5 5 5

15 $ 1,875

EoY 1 Members 6 7 7

20 $ 2,375

EoY 2 Members 7 10 10

27 $ 3,000

Steady-state Members 10 12 12

34 $ 4,000

FTE/member EoY 1 2 1 0.5

4

FTE/member EoY 2 3 2 0.5

6

FTE/member Steady-state 10 5 0.5

16

Office Space (sf) EoY 1 1,800

1,050

525

3,375 150 sf/FTE

Office Space (sf) EoY 2 3,150

3,000

750

6,900 150 sf/FTE

Office Space (sf) S-S 15,000

9,000

900

24,900 150 sf/FTE

Garage Space (# bays) EoY 1 10 1.75 0.7

12

Garage Space (# bays) EoY 2 12 2.5 1

16

Garage Space (# bays) S-S 14 3 1.2

18

Center Management (Expense$ in thousands)

Numbers Expenditure

($) Note

Founding Staff 2

EoY 1 Staff 4

EoY 2 Staff 5

Steady-state Staff 7

Office Space (sf) Start 300 $ 6

150 sf/FTE @ $20/sf

Office Space (sf) EoY 1 600 $ 12

150 sf/FTE @ $20/sf

Office Space (sf) EoY 2 750 $ 15

150 sf/FTE @ $20/sf

Office Space (sf) S-S 1,050 $ 21

150 sf/FTE @ $20/sf

Salary*2.5 ($) Start $ 625 $125

Overhead ($) EoY 1 $ 1,300 $130

Overhead ($) EoY 2 $ 1,688 $135

Overhead ($) S-S $ 2,450 $140

Research ($) EoY 1 $ 1,150

Revenue$-Office$-Salary$

Research ($) EoY 2 $ 950

Revenue$-Office$-Salary$

Research ($) S-S $ 1,263

Revenue$-Office$-Salary$


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