(Bloomberg) -- A simulated city opened Monday on the northcampus of the University of Michigan to test how self-driving carswill travel in the future without mowing down pedestrians orcausing colossal crashes.

"We had the faculty here at the university design the fullyevolved future," Peter Sweatman, head of the TransportationResearch Institute, which oversaw the creation of the M City test facility, said in an interview."After all, we're replacing humans with machines and those machinesneed to be able to operate in a full, rich environment."

Automakers are racing to develop self-driving cars and overhaultheir business models for a world where mobility is being redefinedas most of the global population crowds into large megacitiesduring the next two decades. Driverless cars that move in harmonymay become essential to keep people and goods flowing safely andefficiently.

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