1/2 Detroit challenges Silicon Valley in developing self-driving cars - by Neal. E. Boudette

In the race to develop self-driving cars, Michigan is aiming to give Silicon Valley a run for its money.
Detroit, the Motor City, has been the center of the United States auto industry for more than a century. But as computer chips and software have become increasingly important in automobiles, Silicon Valley has seemed to take the lead, especially in the development of the supersmart cars of tomorrow.
Google and Tesla, for example, have been at the forefront in creating cars with the ability to drive themselves. And many automakers have opened California outposts to become part of the high-tech scene. Uber and Lyft, the app-based ride-hailing services, are both based in San Francisco.
But Michigan is trying to regain the high ground.
General Motors, Ford Motor and Fiat Chrysler Automobiles are all engaged in autonomous vehicle projects based in Detroit's environs. And the state government is laying the ground for even more self-driving development work.
The latest step came this month when Gov. Rich Snyder signed a package of laws to permit more extensive testing of self-driving cars on public roads, while clearing the way for use of autonomous vehicles in trials by ride-hailing services.
“We are opening a new portal for autonomous technology,” Mr. Snyder said in an interview. “This helps reinforce the message that Michigan is a place of innovation.”
The new laws come as Uber battles with California authorities over the company's test of self-driving cars in San Francisco. The state contends that Uber has not obtained the necessary permits, and Uber has stopped picking up passengers with its autonomous test cars.
Nevada and Arizona are also vying to lure companies that are testing and developing self-driving cars. What's at stake is a potential economic boost - the millions of dollars automakers and others are spending on research and engineering, and the high-paying jobs they are creating.
The city of Pittsburgh is also intent on competing with Detroit as a self-driving technopolis. Because of some pioneering research in self-driving technology at Carnegie Mellon University, Pittsburgh has emerged as a key development site.
Uber is using autonomous cars to provide rides in one section of Pittsburgh, a project for which Bill Peduto, the mayor, said he was happy to “roll out the red carpet.”
Delphi Automotive, a maker of automobile components, also working on self-driving system in the city.
Even before Michigan passed its new laws, the state was gaining ground. Earlier this year, Google's self-driving car project, now called Waymo, partnered with Fiat Chrysler to develop a fleet of 100 self-driving minivans and opened a technical office in Novi, Mich., near Detroit.
The modified Pacifica vans, engineered in Michigan and assembled at Fiat Chrysler's plant in Windsor, Ont., just across the river from Detroit, were delivered to Waymo on Monday. The two companies tested the first prototypes at Fiat Chrysler's proving grounds near Ann Arbor.