Cars produced today are essentially smartphones with wheels. For drivers, this has meant many new features: automatic braking, turn-by-turn directions, infotainment. But for all the things we’re getting out of our connected vehicles, carmakers are getting much, much more: They’re constantly collecting data from our vehicles.
Today’s cars are equipped with telematics, in the form of an always-on wireless transmitter that constantly sends vehicle performance and maintenance data to the manufacturer. Modern cars collect as much as 25 gigabytes of data per hour, the consulting firm McKinsey estimates, and it’s about much more than performance and maintenance.
Cars not only know how much we weigh but also track how much weight we gain. They know how fast we drive, where we live, how many children we have — even financial information. Connect a phone to a car, and it knows who we call and who we text.
But who owns and, ultimately, controls that data? And what are carmakers doing with it?
The issue of ownership is murky. Drivers usually sign away their rights to data in a small-print clause buried in the ownership or lease agreement. It’s not unlike buying a smartphone. The difference is that most consumers have no idea vehicles collect data.
We know our smartphones, Nests and Alexas collect data, and we’ve come to accept an implicit contract: We trade personal information for convenience. With cars, we have no such expectation.
What carmakers are doing with the collected data isn’t clear. We know they use it to improve car performance and safety. And we know they have the ability to sell it to third parties they might choose. Indeed, Ford’s chief executive, Jim Hackett, has spoken in detail about the company’s plans to monetize car data.
Debates around privacy often focus on companies like Facebook. But today’s connected cars — and tomorrow’s autonomous vehicles — show how the commercial opportunities in collecting personal data are limitless. Your location data will allow companies to advertise to you based on where you live, work or frequently travel. Data gathered from voice-command technology could also be useful to advertisers.
The data on your driving habits — how fast you drive, how hard you brake, whether you always use your seatbelt — could be valuable to insurance companies. You may or may not choose to share your data with these services. But while you can turn off location data on your cellphone, there’s no opt-out feature for your car.
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