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Struggling automakers confront escalating issues relating to vehicle data privacy, according to industry analysts.

Automobile manufacturers, represented by General Motors (GM), are facing growing legal challenges as demonstrated by a lawsuit initiated by the Federal Trade Commission (FTC).

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Car manufacturers confront escalating issues regarding data privacy, according to professionals in...
Car manufacturers confront escalating issues regarding data privacy, according to professionals in the field

Struggling automakers confront escalating issues relating to vehicle data privacy, according to industry analysts.

In the ever-evolving world of automotive industry, this week has seen a flurry of developments, from major partnerships to recalls and legal issues surrounding data privacy. Here's a roundup of the key events.

Partnerships and Expansions

  • Mercedes-Benz and LG Energy have sealed an $11B deal for EV battery supply, marking a significant step in the race towards electric mobility. (Mercedes-Benz, LG Energy)
  • Lucid Group has secured a $300M investment from Uber, further bolstering its position in the electric vehicle market. (Lucid Group, Uber)
  • Hyundai aims to double its hybrid lineup and launch a mid-size pickup, signalling the company's commitment to sustainable and diverse vehicle offerings. (Hyundai)

Recalls and Malfunctions

  • Toyota has recalled 94,000 EVs due to windshield defogger malfunctions, a potential safety concern for drivers. (Toyota)
  • Ford has issued the largest recall of 2025, affecting over 1.4 million vehicles, due to a fault in the backup camera system. (Ford)
  • General Motors is facing a lawsuit over unlawfully collecting and selling private driving data of 1.5 million people in Texas. The third parties involved are alleged to have used the data to score driver behaviour and manipulate consumers' insurance rates. (General Motors)
  • Texas Attorney General Ken Paxton announced that the state will hold GM accountable for its 'egregious business practices.' (Texas Attorney General Ken Paxton)
  • The FTC has announced it will take action against companies that unlawfully collect and use connected car data, following the recent court decision that ended 'Chevron deference,' a legal doctrine that deferred to a federal agency's interpretation of the legislation when the law was ambiguous. (FTC)
  • Greater disclosure about data collection practices can help automakers reduce their legal risk, according to data privacy and cybersecurity expert Samuel Goldstick. (Samuel Goldstick)
  • Users should be given clear, easy-to-understand privacy policies and instructions on how to adjust data collection settings or opt-out, or they risk potential exposure to class action claims and regulatory scrutiny. (Data Privacy and Cybersecurity)
  • The FTC amended the safeguards rule in 2021 and 2023 to strengthen consumer data protections for non-banking financial institutions like car dealers and mandate additional data breach reporting for such organizations. (FTC)
  • Automotive executives need to work closely with their in-house and outside counsel during product development, according to Rocco Grillo. (Rocco Grillo)
  • The FTC settled a case in 2019 against DealerBuilt over poor data security practices that exposed personal consumer information. (FTC, DealerBuilt)

Industry Developments

  • Automotive Dive and WardsAuto are combining and a new site and newsletter are coming soon. (Automotive Dive, WardsAuto)
  • The US kicks off a consultation process for USMCA review. (USMCA)
  • The regulations in the EU are more stringent than in the U.S., and policies developed in Europe often 'trickle down' but still lag behind. (EU Regulations)
  • OEMs and suppliers must comply with unique consumer data privacy laws in 20 U.S. states, the European Union, and other markets, making compliance difficult. (OEMs, Suppliers)
  • Ford is opening a new HQ and demolishing the iconic 'Glass House'. (Ford, Glass House)

As the automotive industry continues to evolve, these developments underscore the importance of transparency, compliance, and consumer protection in an increasingly connected world.

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