Future of the car
In order to limit deaths, there has been a push for self-driving automobiles. There have been many notable efforts funded by the NHTSA, including the many efforts by the NavLabgroup at Carnegie Mellon University. Recent efforts include the highly publicized DARPA Grand Challenge race.

A current invention is ESP by Bosch that is claimed to reduce deaths by about 30% and is recommended by many lawmakers and carmakers to be a standard feature in all cars sold in the EU. ESP recognizes dangerous situations and corrects the drivers input for a short moment to stabilize the car.

Relatively high transportation fuel prices do not completely stop car usage but makes it significantly more expensive. One environmental benefit of high fuel prices is that it incentivises the production of more efficient (and hence less polluting) car engines and designs and the development of alternative fuels. In the beginning of 2006, 1 liter of gas costs approximately $1.60 USD in Germany and other European countries, and one US gallon of gas costs nearly $3.00 USD. With fuel prices at these levels there is a strong incentive for consumers to purchase lighter, smaller, more fuel-efficient cars. Nevertheless, individual mobility is highly prized in modern societies so the demand for automobiles is inelastic. Alternative individual modes of transport, such as Personal rapid transit, could make the automobile obsolete if they prove to be cheaper and more energy efficient.

Hydrogen cars, driven either by a combination of fuel cells and an electric motor, or alternatively, a conventional combustion engine, are widely mooted to replace fossil fuel powered cars in a few decades. Some obstacles to a mass market of hydrogen cars include: the cost of hydrogen production by electrolysis, which is inefficient and requires an inexpensive source of electrical energy to be economical, the difficulty of storing hydrogen either in its gaseous or liquid (cryogenic) form, and the lack of a hydrogen transport infrastructure such as pipelines and filling stations. Hydrogen has a much higher energy density than gasoline or diesel. It is thought to become cheaper with mass production, but because its production is overall energy inefficient and requires other sources of energy, including fossil, it is unlikely to be a cheaper fuel than gasoline or diesel today. Also, its combustion produces only water vapour (a greenhouse gas) and virtually no local pollutants such as NOx, SOx, benzene and soot. BMW's engineering team promises a high horsepower hydrogen fuel engine in it's 7-series sedan before the next generation of the car makes its debut.

The electric car in general appears to be a way forward in principle; electric motors are far more efficient than internal combustion engines and have a much greater power to weight ratio. They also operate efficiently across the full speed range of the vehicle and develop a lot of torque at zero speed, so are ideal for cars. A complex drivetrain and transmission would not be needed. However, despite this the electric car is held back by battery technology - so far a cell with comparable energy density to a tank of liquid fuel is a long way off, and there is no infrastructure in place to support it. A more practical approach may be to use a smaller internal combustion engine to drive a generator- this approach can be much more efficient since the IC engine can be run at a single speed, use cheaper fuel such as diesel, and drop the heavy, power wasting drivetrain. Such an approach has worked very well for railway locomotives, but so far has not been scaled down for car use.

Recently the automobile industry has determined that the biggest potential growth market (in terms of both revenue and profit), is software. Cars are now equipped with a stunning array of software; from voice recognition and vehicle navigation systems, vehicle tracking system like ESITrack to in-vehicle distributed entertainment systems (DVD/Games), to telematics systems such as GMs Onstar not to mention the control subsystems. Software now accounts for 35% of a cars value, and this percentage is only going to get larger. The theory behind this is that the mechanical systems of automobiles are now essentially a commodity, and the real product differentiation occurs in the software systems. Many cars are equipped with full blown 32bit real-time memory protected operating systems such as QNX.

A new invention by Carmelo Scuderi has the potential to permanently change the combustion engine. The engine is still in the process of patenting, raising capital, and developing a prototype. The invention is claimed to improve the efficiency of an engine from 33% to 40%, a substantial improvement. In addition, toxic emissions are claimed to be reduced by as much as 80%. The new invention calls for dividing the four strokes of a normal engine over a combination of one compression cycle and one power cycle. The inventor claims that the invention will also create more power and will cost manufacturers less to produce. However, given that there is not even a working prototype of this design it is still only speculative at this time (May 2006).