Will have Opening Statements herd, ms. F, mr. Kelly. After that, we will hear from then, after wend have heard from the witnesses, we will go to questions. So with that, i will give the first Opening Statement and again, welcome, everyone. Its interesting, the age we live in, of new technology and communications. The Incredible Technology that we see in take for granted every day, we are hearing a new we are entering a new era in transportation technology. Theres some of the older panelists, members of an audience who remember when you used to open the hood of a car and could take out the various parts and identify everything. Figure outd a phd to what is in there, and its capabilities are just astounding. A lot of safety features and cars we didnt have before, but we today will address the issues relating to, again, what we call the internet of cars and look at some of the implications of that technology. I think some of this was highlighted some time ago when that vehicle was hacked. Fortunately, it wasnt the folks who chose to do harm, but it did demonstrate that vehicles with certain types of electronic fact bety can in hacked, and it does pose some questions. We have called together today leaders of industry and some others. I particularly want to thank the private sector partners a frankn open and discussion of where we are in where we are going and what the industry is doing to deal with some of these issues and i think they have been most cooperative and i appreciate that and we learned a lot from that particular informal meeting. Today is a little bit more formal. Can ave a lot that we 2010,of benefits in 1. 2 million on the worlds highways. United states, some years ago, we had 43,000 per we have taken that down to 33000 and there are a lot of positive things that have been done again, through safety, technology, warning systems, a whole host of electronic devices. Now, in our vehicles, that makes us safer. Economic benefit from connected vehicles is estimated to be 500 billion. We want to ensure that Electronic Systems we have in these vehicles cannot be hacked, that, in fact, we have safety provisions put in and protections for the consumer and for the public. Helped author the direct national Highway Traffic Safety Administration to complete the review and ultimately determine the needs for safety vehicles and Electronic Systems. We will hear from some folks today where they are in the requirement that will be crafted and put in that. A pastnow the year and the deadline be set in law. Automobile makers has been setting their own Cyber Security standards which is the good news. The bad news is that we have a lot of variety and people going a different direction while the andonal Highway SafetyTraffic Safety administration continues to move forward, mandating, dictated shortrange communication devices in cars you must make certain technology this technology hasnt been surpassed by the next thing that is coming up. Are it is is in technology rapid. Advances in technology a rapid purely spent over 500 million on testing this technology that was discovered in 1999. , in 1999, this stateoftheart for some of our communications was the flip phones and we have come ability further from that, so. I fully support connected Vehicle Technology and help with this advancement in the future. We will see vehicles that can talk to each other. Inwill see safety provisions vehicles that will make cars and have more reliable a whole host of features that will benefit the consumer in the traveling public. Ae we must be able to allow bridge to get that environment is the new technologies come to light. While remaining cognizant of the need for Consumer Privacy. So this afternoon, i look forward to hearing testimony from potential witnesses and i pledge to work collaboratively with everyone here on this side, both sides of the aisle, and with the industry. We are entering a new, exciting era that we want to be ready for. Let me now recognize the Ranking Member of the subcommittee on transportation for her Opening Statement. Thank you. Our Motor Vehicles rely on the same methods of communication to and as we have seen committee times, Computer Networks are regularly the victims of hackers. Theave already mentioned july instance this year when a vehicle was hacked. Less than one month later, from that instance, or researcher demonstrated how vulnerabilities in a different vehicle could also let hackers learn the owners home and dress, see our credit card information, and more. So far, there has been no note incidence of malicious attempts to have vehicles but i have to ask the witnesses today, is that because the overall security of the Vehicle Computers is that good . Or heavily simply been that lucky . Congress gave the national Highway Transportation Administration the responsibility to regulate Cyber Security in vehicles but manufacturers and suppliers in the best position to identify weaknesses in their own products. Safety ofhe cyber cars, trucks and motorcycles on the nearly 4 million miles of road that crisscross the United States requires partnership of government, industry, and researchers. Each has an Important Role to play. That is why fight it especially troubling that according to bloomberg, one of the automobile manufacturers involved in the july hack we did 18 months, 18 months to tell federal safety regulators about the security flaw while the other manufacturer reportedly knew about the vulnerability for five years. It undermines a partnership that is a surge protector Public Safety from Cyber Security threats. That is simply unacceptable. Connected Automated Vehicles communicate with other vehicles. They have the potential to revolutionize road safety and save thousands of lives. I agree with him. I look forward to examining these issues in more detail. I think the chairman for bringing this hearing. Thank you. I to recognize mr. Heard, who has the subcommittee on Information Technology for his Opening Statement. Thank you. s hearing is one of a series of hearings. To join with you in a transportation subcommittee here today. My first car was a toyota four runner and i like to call her Shirley Marie appeared i got her in the summer of 2000 and added until summer 2013. We had a lot of adventures together the wanted she cannot do is connect to the internet. 2020, it isd to forecast to one in five vehicles will have some form of Wireless Network connection. It amounted to more than 250 million connected vehicles. Thatent study predicted the internet of things, which includes cars, could have a total potential Economic Impact of between 4 trillion 11 trillion. The report further states that the hype around the internet of things may actually understate the full potential. I agree. I likely does understate the full potential but only if policymakers, consumers, advocates, and other stakeholders understand the real value can be created and focus on supporting innovation and Cyber Security and privacy practices. I worry that overeager regulators in congress will hacked it a stunt with restrictive regulations and heavyhanded legislation. Let forward to hearing from our witnesses from the Automotive Industry today on what steps they are taking proactively to secure their connected vehicles and protect peoples safety as well as their privacy. I look forward to hearing from mr. Garfield on what the companies he represents are doing to ensure the same, that people are safe, that information is secure, that they can be confident to increase the benefits offered by connected vehicles. Aboutorward to hearing the standards of excellence in Highway Safety while staying strictly within the statutory authorities and taking care not to hamper innovation. Thank you. I am pleased to recognize the Ranking Member of the subcommittee on Information Technology. Love them. You are recognized. I think the chairman and our witnesses. Todays cars has been dubbed computers on wheels are they gather in store vast arrays of personal information about the drivers, affording greater convenience and safety but also greater erosion of privacy and security. Our automakers are inventing new technologies that have made the drivers experience more enjoyable and efficient. Tor the air in vehicle Vehicle Technology, things that were once only sciencefiction can save lives and prevent accidents. Comes new innovation questions over security challenges and how data is stored. As a number of internet connected cars grows, so does the threat of vehicle hacking. If cars are going to store personal information about where route and lives, the they taken together, and where they stop, there should be assurances that the information. S stored securely our subcommittees review of cedar previous cyberattacks on networks revealed that the same vulnerabilities show up again. The interconnectivity of seemingly unrelated parts of the Network Makes it substantially easier for a hacker to move through a network and locate sensitive personal information. It is not just Computer Systems that lack segmentation. Seemingly unrelated components of internet connected cars do, as well. A modern car can talk to the radio, the radio can tell whether the doors are locked and the doors know whether the wench and wipers are gone. One of the key topics of todays hearing from me is whether the Auto Industry is designing cars with operating systems that securely store personal information. Ofwe enter this great age tremendous technological innovation, i will focus on how automakers, congress, and regulators can Work Together to secure our vehicles from malicious attack and protect americans. I think our witnesses i think our witnesses for their participation. I think our witnesses for their participation. The yield the remainder of my time. Think you. Thank you. The internet of things brings technology and connectivity into every corner of our lives including our cars. With the pervasiveness of standards, security and Privacy Protection to come or part of the never. Unlike other sectors, security and privacy by designer not yet fully ingrained in Automotive Manufacturing culture, as evidence by vendors regarding cars ever Security Issues with wireless entry fees and hacks of cars. However, regulation can be slow, rigid, and discouraging and red rushing the regulation is not my opinion the answer. But neither is a lack of accountability or standards. The advances of the industry has made in the past year, such as setting up an information sharing and Analysis Center and a set of enforceable privacy principles happened in part because of public and government pressure. The security in the car study act also known as the spike our study act, a bipartisan bill sponsored by congress. Industry in bringing advocates egovernment together to strike a balance between innovation and consumer protection. I served in the military i insulin reserves and i am turned to think about worstcase are threeso there overarching scenarios and questions of elected post at the panel hopefully during the time today you might be of immense array. The first is, is it possible now or in the future for a hacker to remotely taking control of a car and use either as a weapon or cause an accident . Second, is it possible now or in the future for a hacker to take control of a fleet of cars and use them as weapons or cause accidents . 30, is it possible for hackers now or in the future to take partial control of a car so thats and say you are going to in a Highway Safety must for our and suddenly the brace without your knowledge thereby causing an accident. Be curious to know if one does a andretical possibilities, second, if so, looking again to mitigate that aspect . Americans have a right to drive cars that are safe and keep their information audited and eyes by the comment the testimony from todays panel in the forward to asking additional questions on this issue of public importance. Think you. 8 thank you. I yield back. Think you. Thank you. Do any of the members have quick statements . The chair will hold a record open for five legislative days for any number who would like to submit a written statement. Mr. Harry lightsey who is the director of Consumer Experience at General Motors. Sandy logan steam, Vice President loganstein that toyota. Toyota. At toyota. Garfield is the president and ceo of the Information Technology industry ms. Barnes finally, is the associate director and Administrative Law council of the electronic privacy information center. Welcome, witnesses. I might tell you in advance that i will swear you in a just a second and we also try to statement,limit your your verbal statement before the committee to five minutes. Chair tosk through the have Additional Information or data put into the record. With that, we are investigating an Oversight Committee and subcommittees of congress. Could you please stand and i will swear you in. Raise your right hand. The you solemnly swear that the testimony you are about to give before the joint subcommittee meeting of congress is the whole truth and nothing but the truth . Allthe record reflect that of the witnesses answered in the affirmative. Thank you. Be seated. We will go right to our witnesses. Let me start first with welcome him again and all of you and thank you for your cooperation today and he is the administrator of the Vehicle Safety research at national Highway Traffic Safety Administration. Welcome. You are recognized. The microphone up as close as you can so we can hear you. Good afternoon. I appreciate this opportunity to testify up at the national Highway Traffic Safety Administration is addressing emerging challenges associated with new, connected Vehicle Technology. In 2013, there were over five. 7 vehicle crashes in the United States that resulted in 32,719 deaths. The consequences of these crashes range from personal tragedies that will impact individual families forever to the billions in economic dollars that we can actually measure. To a dress these crashes in the increasing use of connected vehicle technologies we can believe can help us to that. When combined together, new technologies and such as vehicle to vehicle communication and Automated Technologies have the potential to dramatically change the safety picture in the u. S. However, as the chairman pointed out, these new technologies also bring new and different challenges. For example, consumers hear a lot about Cyber Security as it is related to things imprisonment remission. It often seems like every day, there is a breach reported in the media. Auto space, Cyber Security is taking on new visibility, showing up and television shows. We understand these dynamics. We believe that the challenges associated with connected vehicles are addressable in asia not keep us from pursuing innovation that can save lives. And analysis indicates that it can address up to 80 of crashes involving two or more Motor Vehicles. This technology promises to be transformative in could even enable a new era of safety to not only saves lives but other benefits, as well. And fully realize, this Communication Technology is a symbol even beyond on vehicles. It can be deployed to other devices that would be carried by pedestrians and cyclists, thereby addressing those types of crashes. However, for it to be effective, it relies on the low cost Security System a robust Security System. Exploring the potential of connected vehicles and other advanced technologies, we understand the Cyber Security is essential to the Public Acceptance of new Vehicle Systems and if it filled the safety promise they hold. To developing the last Cyber Security environment, we modified its organizational structure, developed partnerships, adopted it and approach considered legislative action, and encourage members of the industry to take independent improve the Cyber Security posture of vehicles. Our goal is to be ahea