Business Secretary Vince
Cable said: "The UK is at the cutting edge of automotive technology - from
the all-electric cars built in Sunderland to the Formula One expertise in the
Midlands.
"It's important for
jobs, growth and society that we keep at the forefront of innovation, that's
why I launched a competition to research and develop driverless cars.
"The projects we are
now funding will help to ensure we are world leaders in this field and able to
benefit from what is expected to be a £900bn industry by 2025."
A shuttle is being tried
out in the London borough of Greenwich and an electric pod will be used on
closed roads and pedestrian areas in Milton Keynes and Coventry.
Vehicles trialled in
Bristol will also help gauge public reaction to the cars and assess legal and
insurance issues.
The Government says there
are no legal barriers to the testing of automated vehicles on public roads.
Dr Nick Reed from the
Transport Research Lab, which is running the Greenwich trials, said the
shuttles use sensors to avoid hazards.
"Safety is paramount
in our research and the vehicle is detecting moving objects around it, and if
pedestrians are moving into its path it will slow down, and if they continue
into its path it will come to a safe stop ahead of the pedestrian," he
said.
It is hoped £19m of
Government funding will help British designers get ahead of competitors.
In the US, Google has been
testing its version for several years and car companies have been showing off
their designs.
For the UK trials, a
qualified driver will be ready to take control if necessary.
Insurer David Williams
said: "Currently whoever is driving the car, or cars, are responsible for
the accident, but going forward what's it going to be?
"Is it going to be the
manufacturer of the vehicle? The person who programmed the software? And it
gets even more complicated - most of these vehicles, they're not driverless all
the time, they have the ability for people to interact and take over."
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