NHTSA concerned over Cadillac’s owner confidentiality deal

Article content

Cadillac has caught the eye of U.S. safety regulators with the news that it has offered rebates to select buyers of the all-new, all-electric Lyriq, but only if they’re willing to tell the automaker about their experiences with the car and no one else.

Article content

We apologize, but this video has failed to load.

NHTSA concerned over Cadillac’s owner confidentiality deal Back to video

The National Highway Traffic Safety Administration (NHTSA) is apparently concerned that this could include owners not telling the federal agency about any safety issues that pop up. NHTSA uses a number of sources and methods to determine if a vehicle should be issued a mandatory recall for a safety issue, and one of these is consumer complaints filed directly to the agency.

When they’re developing all-new vehicles, automakers almost exclusively use their own employees – such as engineers – or contracted third-party professional drivers to test-drive pre-production vehicles to collect data on them.

Unusually, Cadillac offered a small number of the first American buyers – it’s believed to be 20 people – a discount of US$5,500 on the Lyriq if they consented to allow the automaker to track their experience, including how and where they drive, and how they charge the car. It’s apparently the first time an automaker has followed through on the first production cars sold to this extent, and specifically for the purpose of fine-tuning the model further if necessary.

Article content

In return, these owners must sign a non-disclosure agreement (NDA) and agree not to discuss their opinions with anyone outside of GM. So far, we don’t know how long the terms of the NDA last – eventually they’ll have to be able to tell their friends about their car, you’d think, but perhaps they’ll always have to keep their lips zipped about any problems they had – or if Cadillac will use any tracking software in addition to direct contact with the owners.

According to the Detroit Free Press, Dan Flores, a Cadillac spokesperson, told the outlet the NDA covers “handling, performance, safety, comfort, and any other feedback the (owners) wish to share as Cadillac enthusiasts,” which seems to explain NHTSA’s concern. No matter what sparked it, an NHTSA spokesperson said the agency was “in communication” with General Motors regarding the terms of the confidentiality contracts.

Article content

In turn, Flores told the newspaper that while the NDAs cover confidential and proprietary information about the car, “it is not intended to, and does not, prohibit or preclude participants from reporting any issue, safety or otherwise, to NHTSA or any other regulatory body.” He further said the owners would receive written confirmation that they can report any safety issues to NHTSA.

While NHTSA might have seemed oversensitive to Cadillac demanding privacy from its buyers, the agency seems to be looking ahead. If other automakers follow GM’s lead and entice its owners to participate in real-world testing in return for some cash, it’s important to set the rules in stone now about what must be divulged in the name of safety.