New study highlights concerns of motorists over personal data on connected cars
A new study shared with AM found that 75% of car buyers do not want any monitoring devices in their vehicles, despite an acceleration in efforts by manufacturers to exploit ‘surveillance capitalism’ through connected cars.
Parkers mainstream website editor Keith Adams told AM that franchise auto retailers should give practical advice on cars’ abilities to track owner’s behavior on the road and on the web due to the growing number of OEMs. seek to monetize the data they collect.
Driving behavior, location services, in-car internet access and cameras are all part of a growing list of data collection devices installed on many modern cars and Search for parkers pointed out the scale of the trend and the lack of awareness of many consumers.
It found that only 10% of the more than 550 people surveyed knew their car had a data agreement in place, as almost 90% said they would not like their car to share data on driving habits. with third parties.
Adams told AM: “With three-quarters of drivers unsure of the implication of their car’s data logging capabilities, I see a great opportunity for dealerships to take a hands-on approach to advising consumers on intricacies of this situation.
“Taking the time to explain why their cars are recording data and the possible benefits of that is another touchpoint that dealerships can be involved in, and a huge advantage over online sales.”
Parkers said OEMs are increasingly engaging in “surveillance capitalism,” a term coined by psychologist Shoshana Zubofff that described a process that “unilaterally claims human experience as free raw material to be translated into behavioral data. “.
He said that while some of this data is applied to improving service, the rest is reported as behavior surplus and can be used to make predictions about motorists and their habits.
While some automakers don’t mine this data at all – Suzuki was a brand that told Parkers they don’t collect such data through connected car technology – Parkers pointed to the work of Otonomo, who works with BMW, as an example.
Floated on the Nasdaq (an American stock exchange) for $ 1.4 billion in February this year, it ingests more than 4 billion data points per day from more than 40 million vehicles before interpreting the data for create new services.
Automakers buy data from Otonomo to create “ new sources of revenue by enabling the use of the vast amounts of data vehicles generate daily, ” Parkers said.
Its depth of view extends to the position of the accelerator, the number of passengers, the speed and the duration of the journey.
Kia’s latest notification center, together with its UVO Connect system, provides customers with information on recalls.
But according to Kia’s connected car product planning manager, Sebastián Salera, told Parkers it could also be used for marketing and financial offers.
However, Kia is currently “undecided” as to whether it will offer such services.
Parkers also noted that a Volvo XC90 long-term test car run by the publication had processed “personal data for customer management,” including creating an online and social profile.
Its report said, “What does Volvo do with your data? It discloses personal data to companies of the same group of companies and to different business partners.
“Business partners can be retailers, marketing research companies, research and development partners, social media companies, and companies that Volvo uses for its IT products and services.”
Many automakers are now using their connected car technology to offer paid upgrades to vehicles through live updates.
These can include automatic high beams, adaptive cruise control, or satellite navigation.
Mark Aryaeenia, managing director of vehicle data company Verex – which manages connected data from 13 car manufacturers in the UK, including Jaguar Land Rover (JLR), Renault and Mazda – told Parkers: the product, and they want to get away from it.
“They want to bring together all perspectives of car ownership, including electric charging, in one point of reference: branding. It also helps manufacturers turn to services. “
While the brand’s own app will collect valuable customer data and provide a vehicle for higher revenue directly to the manufacturer, there is also the potential for increased profitability for dealers, depending on the nature of their contract. franchise.
In a magazine aimed at auto dealerships just after the 2016 U.S. election, former Cambridge Analytica chief risk officer Duke Perrucci wrote that his analytical methods revealed “how a customer wants to be sold, what their personality type is and which methods of persuasion are most effective ”.
He added: “It only takes small improvements in conversion rates for a dealership to see a dramatic change in revenue.”
To read Parker’s research article on surveillance capitalism in its entirety, Click here.