GM Ends OnStar Driver Safety Program After Privacy Complaints
General Motors Co. has ended its OnStar Smart Driver program after customers complained it violated their privacy.
OnStar had cut deals with LexisNexis and Verisk to share personal driving data as part of the program, which they then shared with insurance companies. The idea was that safe drivers would get better rates.
Some GM vehicle owners said they either didn’t know they had consented to the program or that their rates went up. With complaints piling up in recent weeks, GM ended Smart Driver, the company said in a statement Wednesday.
The New York Times also reported last month that GM had been sharing data on driving behavior with the insurance industry for years.
Related: Suit Says OnStar, LexisNexis Shared Driving Data With Insurers, Spiking Rates
The decision marks the latest setback for GM, which has been trying to reinvent itself as a technology platform company. Its electric-vehicle program has been slow to ramp up due to production problems. The automaker’s Cruise self-driving car unit grounded service after an October incident in which a pedestrian was struck and dragged.
Additionally, GM had to halt sales of its electric Chevrolet Blazer after replacing Apple Inc.’s CarPlay with an in-house infotainment system. The change created software issues that could blank out the systems or cause charging issues.
Chief Executive Officer Mary Barra has been counting on the technology initiatives to help double revenue to $280 billion by 2030. OnStar’s Smart Driver was a very small piece of that plan.
GM said it’s also working on enhanced privacy controls and greater transparency in how customer data is handled. The automaker hired a chief privacy officer, Alisa Bergman, who held similar positions at Adobe Inc. and Warner Bros.
Photo: The General Motors Co. headquarters. Photographer: Jeff Kowalsky/Bloomberg