The DEETs Issue #5

US Senators Call For More Accountability For Automakers Selling Driver Data

Two US senators are calling for a crackdown and more restrictions on the sale of driver data by automotive manufacturing companies, saying that multiple automakers have sold personal driving information with data brokers, who then sold it to insurance companies.?

Senators Ron Wyden (D-OR) and Edward Markey (D-MA) are calling on the Federal Trade Commission (FTC) to investigate these practices, raising serious questions about how our personal driving information is being handled.

The Allegations

Senators Wyden and Markey allege that multiple automakers have been unlawfully sharing driver information that includes details about when and where owners used their cars and how they drove them—information that insurers used to hike up premiums for some drivers.

In a detailed 16-page letter to the FTC, the senators named GM, Honda, and Hyundai as key offenders. According to their findings, Hyundai shared data from 1.7 million cars with Verisk, netting just over $1 million, or 61 cents per car. Honda’s data from 97,000 vehicles brought in around $26,000, and while GM hasn’t disclosed its earnings, it’s implicated in the same practice.

Dark Patterns and Deceptive Tactics

Wyden and Markey also pointed to the sneaky methods automakers used to get drivers to consent to data sharing.?

They argue that these “dark patterns” included making drivers believe they needed to agree to data sharing for safety updates and alerts. All three automakers deny any wrongdoing, claiming that users had to deliberately agree to the terms before any data was shared.

A Call for Accountability

“The problematic practices we have uncovered and documented in this letter are likely just the tip of the iceberg,” Wyden and Markey wrote, expressing concern that Verisk might not be the only data broker involved. They cited reports suggesting that other brokers, like LexisNexis, could still be selling driver data.

The senators are urging the FTC to act decisively, similar to its crackdown earlier this year on brokers selling data from smartphone apps. “The FTC should hold accountable the automakers, which shared their customers’ data with data brokers without obtaining informed consent, as well as the data brokers, which resold data that had not been obtained in a lawful manner,” they declared.

Data Ethics Is Always Important

If your business collects valuable data from customers, it’s always crucial to make sure you’re using this data in an ethical and legal way.?

It’s one of the reasons why we’ve developed solutions like NADA Vault, which allows dealerships to manage their vendor and manufacturer relationships with only the data required for each interaction, keeping customer data safe and compliant with FTC regulations.?

Data is useful, but customer trust is always more important.?

(Source)(Source)

Trending

Tesla’s US electric car market share has fallen below 50% in Q2 for the first time ever, according to Cox Automotive. It’s down from 59.3% last year, a sign that Tesla is losing its dominance in the market.?

AutoNation has teamed up with the U.S. Army to create a program offering career opportunities in the automotive industry for soldiers transitioning from military service to civilian life.?

Nissan and Honda appear to be joining forces on the development of electric vehicles and automotive software. Teaming up like this could make a pivot to electric go much more smoothly.

Volvo has reported a global sales increase of 6% in July, driven mostly by the fact that in Europe, fully electric vehicles are like, so hot right now.?

Lego is celebrating the 45th anniversary of the Mercedes G-Class with this very cool Technic set. It’s got everything from a roof rack to a spare tire carrier and functional doors, hood and tailgate.You’ll just need plenty of patience to put it together - it comes with 2,891 pieces.?

Featured Blog Post: The Surprising Financial Impact of Dirty Data in Automotive

In case you missed it, a little while ago we shared a deep-dive into how unclean data can really leave a stain on the finances of your automotive dealership.?

Dirty data, which is inaccurate, incomplete or inconsistent either due to a data collection flaw or human error, can cause serious problems.?

Check out the blog post to learn more about the dangers of dirty data and how you can make sure you’re always working with squeaky-clean reports that give you the best and most accurate insights. (Hint: Record Recharge can help.)

Click here to read the blog post. ?

Interesting Stats at a Glance

• A modern connected car is equipped with more than 100 sensors and generates around 25 gigabytes of data per hour. That’s equal to nearly 30 hours of HD video playback! (Source)
• According to Statista, 22% of US respondents born between 1980 and 1994 have an electric vehicle as a primary car for their household, while 10 percent own a battery electric vehicle. (Source)
• Based on the most recent data from Cox Automotive, the average price for a new car in the USA is $47,433. That’s a decrease of 0.2% year-over-year, but an increase of 0.5% since June 2024. (Source)
• With the average new car price close to $50k, more people than ever are buying old used cars, which is causing the price of these to rise too. The average price of a 10-year-old car has increased by 60% since 2014.?

Authenticom Partner of the Month

This month’s Featured Partner is Stephen Granger, Founder and CEO of Dealer Recall Solutions. This US-based company provides tools to help dealers drive service traffic with recalls, offering better customer support and generating more revenue.?

Stephen spoke to us about what car dealerships often struggle with when managing recalls, and how he’s built his tool around improving customer experience rather than just adding “cool tech” for the sake of it.?

What inspired you to start Dealer Recall Solutions? How did you develop the vision for the company?

I was working for a dealership group as the digital director. I looked at our inventory and saw that we had a large number of cars with recalls. When I would ask how we get them taken care of, there wasn't a really good answer. Around that time the Takata airbag issue happened and all of a sudden there were millions of cars with recalls and no real good solutions for getting them into dealerships.

The company has been bootstrapped from the beginning. I basically looked at the problem and tried to figure out a good solution. At first I would literally use Excel spreadsheets and look up VINs by hand to figure out what cars had recalls.?

Over the past 5 years we’ve iterated with different products and finally I feel like we have a great tool that helps dealers and consumers alike.

What are the biggest challenges car dealerships face when managing vehicle recalls, and how does Dealer Recall Solutions address these challenges???

I think the challenge for dealerships is they have so many issues they deal with every day. Recalls are a very “small” worry for them in the grand scheme of things.They don't realize how big of an issue it is and how fixing them can really benefit their dealership and their customers.??

1 in 5 cars in the US has a recall. That is over 60 million cars. Like anything it takes a process to get things done properly and because it is not high on dealerships list of todos they usually don't have a very solid process in place. Again, it isn't their fault, it is just they are putting out so many fires this is just another one to tackle.

What advice would you give to car dealerships looking to improve their recall management processes???

They should really ask themselves what they are doing to get recalls in and get them fixed. That is one of the biggest things we see when we start a conversation with a dealership. When they hear our name they quickly say “oh, we don't need help. We get all the recalls in our market taken care of…” or “we get the data from our OEM, we don't need any help…”?

Then when we start to dig a little deeper with them, usually they realize they don't really have much of a process. They thought they did but when they actually looked at it, they were not being proactive, missing out on helping customers and adding to the bottom line.

What has been the most rewarding part of leading Dealer Recall Solutions for you personally?

I know it sounds kind of hokey, but I love to see our tool help dealership staff reach goals. We have a great customer in the Chicago area and month after month they have broken records for their store. We aren’t the only reason but it is cool to see our tool help a customer succeed.

What are some of the biggest changes you’ve noticed in the industry in the last few years, and how are they affecting the way you approach things?

Well, for good and bad, I’ve seen the influence of technology in our space. I think dealers are always looking for ways to improve and unfortunately sometimes the use of technology over people doesn't really improve the customer experience at dealerships.??

I can't tell you how many times I have called a dealership and gotten on some crazy phone tree and can never get a person. Or, I get hung up on when I push the button I am told to. It has made me really think hard when we try to implement new technology in our tool. I am always thinking, is this really going to make the product better and help our customers or is it just “cool tech”?

How do you see the automotive recall landscape evolving over the next five years?

I think like most things in the world, I wonder how AI will affect the space. How can AI be used to better communicate with customers and even make the manufacturing process better so that we have less recalls in the first place?

Final Question (just for fun): If you could go anywhere on a dream road trip, where would it be?

I am a big sports car racing fan.? So I would have to say going to see the 24 hours of Le Mans in person then driving across France in a great European car.

You can learn more about Dealer Recall Solutions on their website.?

How People Talk About Cars Online?

Curious about what the most talked-about car brands are in online searches and social media conversations?

The YouGov U.S. Social Listening Report just dropped the deets on the top 30 most searched auto brands for 2023 and the first quarter of 2024.?

The report combines AI with digital, social, survey and marketing data from 42 territories. Though the rankings have shuffled a bit, all brands from 2023 have held their ground in Q1 of 2024.?

The Most Searched Car Brands in 2023 and Q1 2024

Top 1-10: The Front-Runners

In the fast lane, we have a mix of luxury, sporty, reliable, and electric contenders. Ford took pole position, jumping from #2 in 2023 to #1 in Q1 2024, while Tesla slipped to #2.?

Toyota and BMW are holding steady at #3 and #4. These brands are globally renowned, offering a range of vehicles that hit the sweet spot of mid-to-high pricing.

Top 11-20: The Climbers

The 11-20 bracket features brands that appeal to both budget-conscious and luxury-loving consumers.?

Lexus made a significant climb from #16 to #11, and Ferrari zoomed up from #17 to #13. Jeep dropped to #16, but Acura revved up from #25 to #20. This tier is all about variety, catering to a wide audience.

Top 21-30: The Luxury Models

In positions 21-30, we find brands known for their luxury and performance. GMC fell slightly to #21 from #19, Buick inched up to #23 from #21, and Jaguar slipped to #29 from #26.?

These brands target the high-end market, where prestige and unique driving experiences are key.

Key Insights:

Tesla remains the talk of the town, leading online news mentions through 2023 and Q1 2024, showcasing the ongoing buzz around electric vehicles.

Alfa Romeo and Aston Martin are the darlings of positive sentiment, likely due to their stylish designs and thrilling driving experiences. Aston Martin's James Bond connection certainly doesn’t hurt their appeal - YouGov found that media placements highly impacted online activity.?

The most complained about car online? Infiniti. The online conversation about this brand is rife with angry rants about repair costs, vehicle defects and terrible dealership service.?

(Source) (Source)

Exciting Announcment

?? Join Us at Digital Dealer 2024! ??

We'll be diving deep into the world of Dirty Data—its impact on dealerships and practical solutions to clean it up. Don’t miss our expert insights at this must-attend event in October!

CLICK HERE TO ADD TO YOUR CALENDAR

Snippets

Helpful Resource: Does your car need a little TLC? At CarCareKiosk.com, you can find over 60,000 free how-to car repair videos. Search by make, model and year to find DIY maintenance guides that could save you from an expensive trip to the mechanic!?

Update Your Meta Strategy: Meta just dropped 2 new dealer playbooks, one for Dealer Advertising and one for Dealer Creative, with hot tips on media placement, advertising, audience recommendations and more.?

Dealer Tips: When a customer says, “I need to think more about it,” but in reality they are considering an offer from a competitor - this article from Digital Dealer offers some ideas on how to respond.?

Sorry Not Sorry: Canada is undergoing a car theft epidemic, with Interpol announcing that over 200 stolen vehicles from the Great White North every week are being identified in other countries. Canadian port staff aren’t allowed to inspect shipping containers without a warrant, so thefts will likely continue until port security is bolstered. (Source)

Just For Fun: Want to impress your pals with your astronomy knowledge next time you’re looking up at the night sky? Stellarium is an online planetarium where you can bone up on your local constellations and become a star expert.?

Sustainability in The Automotive Industry: Data is the Fuel

Going green isn’t just good for the planet; it’s smart business.

Data allows us to make changes throughout the automotive industry, from greening the supply chain to optimizing production, logistics, and vehicle usage.?

Here's just a few examples of how data can help us steer towards a more sustainable future:

Greening the Supply Chain

Auto companies are using big data, cloud computing, and blockchain to track carbon emissions and sustainability practices of their parts suppliers. For example, Mercedes-Benz uses blockchain to monitor cobalt flow and CO2 emissions in its supply chain.

Optimizing Production

By integrating IT solutions with factory operations, car manufacturers can collect real-time data on energy use and waste. This helps them spot inefficiencies and make production more sustainable.

Optimizing Logistics

Analytics are helping optimize delivery routes, cut fuel consumption, reduce emissions, and improve inventory management to avoid waste.

The Bottom Line

Data has the potential to help us solve these critical sustainability challenges - so let’s use it as the engine that drives us toward more eco-friendly practices.?

(Source)(Source)(Source)(Source)(Source)(Source)

Around the Web

______________________________________________________

A dealership in Connecticut is being sued for taking back a customer’s new car - two weeks after already selling his trade-in.?

The kerfuffle is highlighting the issue with “yo-yo financing,” which is when a dealership lets the buyer leave with a car even though they haven’t been approved for the loan.??

______________________________________________________

A complex scam used voice-imitating AI to pose as Ferrari CEO Benedetto Vigna, and it almost fooled an unnamed executive, until he became suspicious and asked the AI clone, “What book did you just recommend to me?”

With a title like Decalogue of Complexity: Acting, Learning, and Adapting in the Incessant Becoming of the World, it’s no surprise the AI wasn’t able to guess the correct answer.?

______________________________________________________

Are robots gonna take your job??

Check here for a percentage likelihood estimate, as well as some interesting data on growth, wages and volume of job opportunities.??

______________________________________________________

Is everything okay??

If not, click here to make everything okay.?