LIDAR Will Make First-Generation Autonomous Vehicles Insanely Expensive or Pathetically Slow

Matt Posky
by Matt Posky

Thanks to rhetoric beaten into us by the automotive industry, we know autonomous vehicles are “right around the corner.” Some manufacturers predict self-driving vehicles will be on the commercial market by an ambitiously early target date of 2021. However, those trick new rides are going to come at a premium that’ll keep them out of the hands of most normal people for a while.

LIDAR, the imaging system that allows an autonomous vehicle’s software to make sense of the road, is prohibitively expensive. High-end systems can approach the six-figure threshold while lower quality units rarely fall below 10 grand. Burgeoning technology is never affordable and automakers have traditionally found a way to produce advancements in cost-

effective ways. But the timeline for autonomous cars is too short, meaning any manufacturer wanting to sell one is going to have to have to accept the costs or defer production.

While automakers could option for budget hardware to keep costs down, it would never be worth the risks. Since allowing a car to drive itself places a colossal amount of responsibility on the automaker, even mid-range LIDAR units pose a bit of a safety gamble. According to MIT Technology Review, lower end LIDAR systems would be ineffective at highway speeds.

As an example, MIT provided imaging data from two units sold by Velodyne — the $80,000 HDL-64E and the $8,000 Puck. The more expensive model’s 64 laser beams maps the surrounding area in impressive detail up to 120 meters, while the Puck’s 16 points of light lose fidelity almost immediately, with a maximum range of 100 meters. Both are good enough for low speed maneuvers but the Puck would be almost useless at normal driving speeds.

However, even the HDL-64E just barely meets the minimum requirements for highway driving. At 70 miles an hour, a vehicle is moving 31.3 meters per second and could require as much as 60 meters to come to a complete stop in an emergency situation. Every meter beyond that range is more time the computer can use to make smart decisions, and it will need them. Ideally, MIT claimed a LIDAR systems for use on cars should provide an effective imaging range of 200 meters to be safe at highways speeds.

One solution could be solid-state systems, which are much more cost-effective than traditional LIDAR units. Quanergy announced it has built a $250 model for use on vehicles called the S3. However, as appealing as the cost may be, it lacks the fidelity necessary for doing anything other than creeping along at single-digit speeds. Velodyne is also working on an affordable solid-state unit, but has admitted it isn’t yet a replacement for 360-degree laser systems.

CEO of Luminar, Austin Russell, explained his company actively chose to avoid solid-state hardware in its sensors — mainly because it believed that while laser-based systems were far more expensive, they also provide superior images that are essential for safe driving. “It doesn’t matter how much machine-learning magic you throw at a couple of points [on an object], you can’t know what it is,” he says. “If you only see a target out at 30 meters or so, at freeway speeds that’s a fraction of a second.”

Graeme Smith, chief executive of Oxford University’s autonomous driving program (Oxbotica) told MIT Technology Review that he thinks a tradeoff between data quality and affordability in the LIDAR industry could create a disparity in the rates at which high-speed autonomous vehicles take to the roads. “Low-speed applications may be more affordable more quickly than higher-speed ones,” he said. “If you want a laser that’s operating over 250 meters, you need a finely calibrated laser. If you’re working in a lower-speed environment and can get by with 15 meters’ range, then you can afford a much lower-cost sensor.”

It’ll still add to the cost of any vehicle in which they’re installed, however. While industry researchers and automakers routinely claim the cost of self-driving hardware will tack on an additional $8,000 to $10,000 to a car’s final price, the actual fee is likely to be much higher. When you try to piece together all the hardware that goes into existing test platforms, the final price is astronomical. While Tesla has claimed it managed to keep its radar-based system at around $8,000, it still requires several thousand dollars’ worth of computer equipment, cameras, and an inertial measurement unit for when the GPS goes offline. But many have expressed concerns that Tesla’s radar wouldn’t be sufficient for detailed imaging.

Meanwhile, companies using higher resolution LIDAR systems will likely have to implement radar anyway for use in fog — or else deactivate the system when things get soupy. In a recent interview with Axios, Luminar’s Russell said any manufacturer hoping for retail would have to pull out all the stops to ensure safety while also bringing down “critical failure rates” by ensuring crystal clear imaging. He believes there is too much of an emphasis within the autonomous sector on bringing down costs, when developers should be focusing on making the technology bulletproof.

The cost of perfecting the technology, according to Russell, could be between “$300,000 and $400,000 — the price that fleet owners will be willing to pay because of how profitable ride-hailing will be as a business.”


[Image: Ford Motor Company]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Dr_outback Dr_outback on Jul 28, 2017

    The point that is often overlooked with these systems is the cost to repair and service them. A single radar sensor for an A6's radar cruise control is $2800.00 + $500 to calibrate.

  • Hreardon Hreardon on Jul 29, 2017

    The issue is not whether these systems will come down in cost or complexity - they will. The issue is the timeline and whether the legal system (in the US, specifically) will make these systems cost prohibitive for insurers and manufacturers alike.

  • Kmars2009 I rented one last fall while visiting Ohio. Not a bad car...but not a great car either. I think it needs a new version. But CUVs are King... unfortunately!
  • Ajla Remember when Cadillac introduced an entirely new V8 and proceeded to install it in only 800 cars before cancelling everything?
  • Bouzouki Cadillac (aka GM!!) made so many mistakes over the past 40 years, right up to today, one could make a MBA course of it. Others have alluded to them, there is not enough room for me to recite them in a flowing, cohesive manner.Cadillac today is literally a tarted-up Chevrolet. They are nice cars, and the "aura" of the Cadillac name still works on several (mostly female) consumers who are not car enthusiasts.The CT4 and CT5 offer superlative ride and handling, and even performance--but, it is wrapped in sheet metal that (at least I think) looks awful, with (still) sub-par interiors. They are niche cars. They are the last gasp of the Alpha platform--which I have been told by people close to it, was meant to be a Pontiac "BMW 3-series". The bankruptcy killed Pontiac, but the Alpha had been mostly engineered, so it was "Cadillac-ized" with the new "edgy" CTS styling.Most Cadillacs sold are crossovers. The most profitable "Cadillac" is the Escalade (note that GM never jack up the name on THAT!).The question posed here is rather irrelevant. NO ONE has "a blank check", because GM (any company or corporation) does not have bottomless resources.Better styling, and superlative "performance" (by that, I mean being among the best in noise, harshness, handling, performance, reliablity, quality) would cost a lot of money.Post-bankruptcy GM actually tried. No one here mentioned GM's effort to do just that: the "Omega" platform, aka CT6.The (horribly misnamed) CT6 was actually a credible Mercedes/Lexus competitor. I'm sure it cost GM a fortune to develop (the platform was unique, not shared with any other car. The top-of-the-line ORIGINAL Blackwing V8 was also unique, expensive, and ultimately...very few were sold. All of this is a LOT of money).I used to know the sales numbers, and my sense was the CT6 sold about HALF the units GM projected. More importantly, it sold about half to two thirds the volume of the S-Class (which cost a lot more in 201x)Many of your fixed cost are predicated on volume. One way to improve your business case (if the right people want to get the Green Light) is to inflate your projected volumes. This lowers the unit cost for seats, mufflers, control arms, etc, and makes the vehicle more profitable--on paper.Suppliers tool up to make the number of parts the carmaker projects. However, if the volume is less than expected, the automaker has to make up the difference.So, unfortunately, not only was the CT6 an expensive car to build, but Cadillac's weak "brand equity" limited how much GM could charge (and these were still pricey cars in 2016-18, a "base" car was ).Other than the name, the "Omega" could have marked the starting point for Cadillac to once again be the standard of the world. Other than the awful name (Fleetwood, Elegante, Paramount, even ParAMOUR would be better), and offering the basest car with a FOUR cylinder turbo on the base car (incredibly moronic!), it was very good car and a CREDIBLE Mercedes S-Class/Lexus LS400 alternative. While I cannot know if the novel aluminum body was worth the cost (very expensive and complex to build), the bragging rights were legit--a LARGE car that was lighter, but had good body rigidity. No surprise, the interior was not the best, but the gap with the big boys was as close as GM has done in the luxury sphere.Mary Barra decided that profits today and tomorrow were more important than gambling on profits in 2025 and later. Having sunk a TON of money, and even done a mid-cycle enhancement, complete with the new Blackwing engine (which copied BMW with the twin turbos nestled in the "V"!), in fall 2018 GM announced it was discontinuing the car, and closing the assembly plant it was built in. (And so you know, building different platforms on the same line is very challenging and considerably less efficient in terms of capital and labor costs than the same platform, or better yet, the same model).So now, GM is anticipating that, as the car market "goes electric" (if you can call it that--more like the Federal Government and EU and even China PUSHING electric cars), they can make electric Cadillacs that are "prestige". The Cadillac Celestique is the opening salvo--$340,000. We will see how it works out.
  • Lynn Joiner Lynn JoinerJust put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
  • Lynn Joiner Just put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
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