Drivers More Likely to Be Distracted While Using Partial Automation Tech, Study Shows 

Cars are stuck in traffic after police blocked the road in West Palm Beach, Florida, on September 15, 2024 following a shooting incident at former US president Donald Trump's golf course. (AFP)
Cars are stuck in traffic after police blocked the road in West Palm Beach, Florida, on September 15, 2024 following a shooting incident at former US president Donald Trump's golf course. (AFP)
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Drivers More Likely to Be Distracted While Using Partial Automation Tech, Study Shows 

Cars are stuck in traffic after police blocked the road in West Palm Beach, Florida, on September 15, 2024 following a shooting incident at former US president Donald Trump's golf course. (AFP)
Cars are stuck in traffic after police blocked the road in West Palm Beach, Florida, on September 15, 2024 following a shooting incident at former US president Donald Trump's golf course. (AFP)

Drivers are more likely to engage in non-driving activities, such as checking their phones or eating a sandwich, when using partial automation systems, with some easily skirting rules set to limit distractions, new research showed on Tuesday.

Insurance Institute for Highway Safety (IIHS) conducted month-long studies with two such systems - Tesla's Autopilot and Volvo's Pilot Assist - to examine driver behavior when the technology was in use and how it evolved over time.

While launching and commercializing driverless taxis have been tougher than expected, major automakers are in a race to deploy technology that partially automates routine driving tasks to make it easier and safer for drivers, and generate revenue for the companies.

The rush has sparked concerns and litigation around the dangers of driver distraction and crashes involving such technology.

The studies show better safeguards are needed to ensure attentive driving, IIHS said in the report.

Partial automation - a level of "advanced driver assistance systems" - uses cameras, sensors and software to regulate the speed of the car based on other vehicles on the road and keep it in the center of the lane. Some enable lane changing automatically or when prompted.

Drivers, however, are required to continuously monitor the road and be ready to take over at any time, with most systems needing them to keep their hands on the wheel.

"These results are a good reminder of the way people learn," said IIHS President David Harkey. "If you train them to think that paying attention means nudging the steering wheel every few seconds, then that's exactly what they'll do."

"In both these studies, drivers adapted their behavior to engage in distracting activities," Harkey said. "This demonstrates why partial automation systems need more robust safeguards to prevent misuse."

The study with Tesla's Autopilot used 14 people who drove over 12,000 miles (19,300 km) with the system, triggering 3,858 attention-related warnings. On average, drivers responded in about three seconds, usually by nudging the steering wheel, mostly preventing an escalation.

The study with Volvo's Pilot Assist had 29 volunteers who were found to be distracted for 30% of the time while using the system - "exceedingly high" according to the authors.



Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
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Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo

Investors gave a thumbs-down to Toyota Motor's $33 billion take-private offer for Toyota Industries on Wednesday, highlighting concerns minority shareholders would be short-changed in a landmark restructuring for Japan Inc.

Shares of Toyota Industries, a key Toyota Group company, fell 12% in Tokyo trade a day after the world's top-selling automaker unveiled plans to take the subsidiary private. The complex 4.7 trillion yen ($33 billion) transaction includes an offer price of 16,300 yen a share for Toyota Industries.

While that represents a 23% premium to the price before word of the deal broke in April, it is well below the 18,400 yen price before the offer was formally announced. Shares closed at 16,205 yen on Wednesday.

"To be clear, we welcome the attempt to clear up the parent-subsidiary governance issue. We don't like the price," said David Mitchinson, founding partner and chief investment officer of Zennor Asset Management, which owns Toyota Industries shares, Reuters reported.

When asked if Zennor would tender its shares, he said: "We will have to see how this develops as there seems strong opposition from many shareholders".

The deal will see a number of Toyota Group companies unwind cross-shareholdings, something Japanese regulators and the Tokyo Stock Exchange have long urged for better governance.

Toyota Industries has been one of Japan's most prominent examples of so-called "parent-child listings", where both a parent company and its subsidiary are listed. Governance experts say such cases are inherently unfair to minority shareholders and a drag on corporate value.

Still, the transaction comes up short in terms of corporate governance, as it both undervalues Toyota Industries' substantial real estate holdings and strengthens the founding Toyoda family's control over the broader group, market participants said.

"There's huge hidden asset value in the land and other holdings at Toyota Industries. And the price should have been much higher," Nicholas Benes, a governance expert and the CEO of the Board Training Institute of Japan, told a briefing on Wednesday.

The deal was a "prime example" of a squeeze-out of minority shareholders at an unfair price by founders and management, he said.

In a statement, Toyota Motor said the interests of Toyota Industries' minority shareholders were being considered. "Taking into account shareholder returns and the tax benefits for Toyota Industries, we have adopted a share buyback scheme" through a tender offer, it said.

It said the deal was part of a broader realignment of capital structures within the Toyota Group as it moved toward becoming a mobility company.

A new holding company will be set up for the deal. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares.

Media reports had indicated the tender offer would be around $42 billion, a substantial premium to the actual offer.

Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it.

Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the automaker and more than 5% of Denso.

Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.