An anonymous reader writes As nations compete to build the first operational autonomous car, German auto-manufacturers fear that current domestic laws limit their efforts to test the appropriate software for self-driving vehicles on public roads. German carmakers are concerned that these roadblocks are allowing U.S. competitors, such as Google, to race ahead in their development of software designed to react effectively when placed in real-life traffic scenarios. Car software developers are particularly struggling to deal with the ethical challenges often raised on the road. For example when faced with the decision to crash into a pedestrian or another vehicle carrying a family, it would be a challenge for a self-driving car to follow the same moral reasoning a human would in the situation. 'Technologically we can do fully automated self-driving, but the ethical framework is missing,' said Volkswagen CEO Martin Winterkorn.