Thrun said that while refocusing on technology today will not pull the American auto industry out of its current financial trouble, car company engineers must immediately start looking closely at how they can better use technology, and specifically robotics.

"I think working on advanced technology like autonomous cars is the only way out for the automotive industry," said Thrun. "We have to be forward looking. We need to make transportation more efficient. There's a good chance it will be the demise of the industry if we don't."

Robotic gadgets that help drivers park their cars, avoid rear ending other vehicles and keep sleepy drivers alert are part of the evolution, he added.

Auto makers need to change the way they think about the vehicles they're building, said Thrun. Enough, he says, with the giant, heavy SUVs. Figure out how technology and robotics, in particular, can change the vehicles we're using.

Thrun pointed out that 42,000 people in the U.S. alone are killed in car accidents every year, even though 30% of an average car's weight is safety equipment. Therefore, if cars could be built so that they wouldn't rear-end another car, weave out of a traffic lane or even drive themselves, then they would be safer and use less fuel, he noted.