General Motors make some of the most iconic American cars - think Chevrolet, Buick, Cadillac. But they've been up to some pretty under the table dealings recently. And they're being punished for it - they've been slammed with a pretty staggering fine. This is after they sold customer data nationwide without consent.
According to the New York Post, California has just hit General Motors with a hefty privacy fine of $12.5 million. California Attorney General Rob Bonta explained that the car manufacturer illegally sold all manner of private data to brokers.
But none of this money is going to Californians. The money would go straight to the state - this isn't a class-action thing.
"General Motors sold the data of California drivers without their knowledge or consent and despite numerous statements reassuring drivers that it would not do so," he explained. "This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians."
Pretty scary stuff, right? A 2024 investigation by The New York Times revealed that General Motors had gathered and sold this vital data. This data was sold nationwide, leading to some pretty shocking insurance price hikes. But, California has rules against using driving data to set insurance rates, so Californians were less likely to be aware of the breach.
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This Comes as General Motors Starts a Fresh Wave of Layoffs
It looks like General Motors is having a pretty tough time at the moment. According to Business Today, the company has started a new wave of layoffs.
The company has laid off a shocking 10% of their workforce, in an effort to pivot more toward AI talent. In an email statement, they explained, "GM is transforming its Information Technology organisation to better position the company for the future."
This comes after General Motors had a pretty stark shakeup in their software division. After Sterling Anderson took over as chief product officer in May 2025, they've really been batting for the fences with AI.
It's a pretty concerning revelation, especially with their past mishandling of customer data. People are frustrated and worried that artificial intelligence could cause more data protection problems.
