...USA = Potential to be Global Hub of Auto Industry Again? USA Could Benefit from Creating Space in the Automotive Regulatory Framework to Foster Innovation 1) Federally Provided Guidance to States to Embrace Autonomy – Multiple legislative frameworks from individual states could impede autonomous innovation... 2) Flexibility of Regulation – Numerous approaches to solving autonomy challenge are likely to evolve simultaneously... regulation should not impede any single innovation approach... 3) Individual Cities / States Championing Autonomy – More testing locations / forward-leaning cities like Mountain View, CA / Austin, TX / Kirkland, WA / Metro Phoenix, AZ... 4) Comprehensive Safety Frameworks – Gov’t should have power to allow autonomous systems that demonstrate quantifiable safety improvements over current driver-vehicle combination... 5) Leaning Forward on Sharing (Car & Ride) – Regulators should work with rather than against sharing companies to craft policy as consumer demand illustrates need / interest in sharing... 6) Auto Cybersecurity – Connected cars face increased risk of cyber attacks...manufacturers & suppliers should keep consumer security / privacy as a key priority... 7) Next-Generation Franchise Laws – Semi-autonomous & autonomous cars are likely to change process of buying / servicing given ‘over the air’ nature of software downloads...USA could consider the EU ‘Block Exemption’ as model & allow consumers to service vehicles at either manufacturer-affiliated or independent locations Source: KPCB Green Investing Team, Reilly Brennan (Stanford), Google Note: EU Block Exemption details per European Commission. Testing locations represent Google autonomous car testing cities. KPCB INTERNET TRENDS 2016 | PAGE 148