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Car Surveillance: an Unregulated Privacy Disaster

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First published at 13:24 UTC on April 8th, 2021.

The Hated One

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Car companies are adopting the Silicon Valley business model to gradually transform drivers into users. Cars today are being enriched with more and more smartphone-like features as drivers lose more and more control over their vehicles. If you bought a car anywhere in the last decade, you didn’t just pay with your money. You signed up to hand over troves of data from your personal life as well. Automakers today are data companies.

A modern car can generate about 4 TB of data a day. That’s roughly 25 GB every hour. Automakers realize the value of this data and are beginning investing heavily to compete with software companies for ad-driven user attention. Soon, the biggest competitors of GM or BMW won’t be just other car companies, but Facebook and TikTok.

The trend is irreversible. Selling data is a high-margin business, with 80- to 90-percent profit. Compared with the average profit margins of selling cars that rarely exceed double digits, understanding the drive for data is easy. It’s the new currency.

Sources

Car company profit margins: https://www.statista.com/statistics/1186661/car-company-profit-margin/

Toyota Cloud city: https://www.autonews.com/article/20170710/OEM06/170719963/toyota-s-cloud-city
BMW & Daimler partnership: https://www.seattletimes.com/business/bmw-daimler-launch-car-and-ride-sharing-joint-venture/
Car data companies: https://techcrunch.com/2019/05/23/automakers-faced-with-a-choice-become-data-companies-or-become-irrelevant/
Data profit margi..

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