NHTSA worried about confidential agreement GM made with some Lyriq buyers

The National Highway Traffic Safety Administration is in talks with General Motors over concerns it has with GM’s new program requiring some customers to sign a confidentiality agreement when they bought or leased a 2023 Cadillac Lyriq all-electric SUV. 

GM is in the midst of launching the Lyriq, an EV that is crucial to Cadillac’s future as the brand transitions to all-electric by 2030. 

On Wednesday, NHTSA spokesperson Lucia Sanchez told the Detroit Free Press the agency is “in communication with GM regarding” the nondisclosure agreements and whether they would inhibit someone from reporting safety issues with the agency. 

“NHTSA relies on reports from consumers as an important source of information in evaluating potential safety defects,” said Sanchez in an email. “Any agreement that may prevent or dissuade consumers from reporting safety concerns to NHTSA is unacceptable.”

An NDA typically would prohibit a person from talking about their experience with the vehicle to third parties and that’s what raised concerns at the government agency, especially if other automakers follow GM’s lead and add similar programs.

As the Free Press first reported last week, to help ensure the Lyriq launch is flawless and any kinks are addressed quickly, Cadillac offered about 20 select customers in metro Detroit, New York and Los Angeles a $5,500 discount on a Lyriq in exchange for them signing the confidentiality  agreements. The customers also agreed to let GM track how they use their Lyriq.

“As we transform our business, the launch of our first all-electric vehicle, Lyriq, provides Cadillac some unique learning opportunities,” Cadillac spokesman Mike Albano said of the program. He added, “We’re doing everything possible to get the launch right.”

More:GM offers rebate on Cadillac Lyriq if drivers sign NDA, agree to be tracked

NDA could be ‘unacceptable’

This program is a first. No other automaker has recruited customers to do initial studies on a vehicle rather than what is usually done: Employees drive company-owned preproduction vehicles and report any issues.

Albano said Cadillac did use employees, but added, “There’s a lot we can learn from customers beyond the physical vehicle. We can see their charging behaviors, driving behaviors and how they use the vehicle.”

GM will use “a variety of ways to gather information from the customers,” including direct phone calls, dealer contacts and a dedicated EV concierge team. Albano did not provide specifics, including how long the NDA lasts, what the penalty is for violating it and whether GM will monitor vehicle software to gather data. 

GM defends the NDA

GM spokesman Dan Flores said NHTSA does not need to be concerned and “we have advised them of this fact.”

In a statement emailed to the Free Press, Flores said: “Cadillac created a small-scale Ambassador program to provide some early learnings from the first vehicles sold. … This includes handling, performance, safety, comfort and any other feedback the Ambassadors wish to share as Cadillac enthusiasts. While the program agreement contains provisions designed to protect GM confidential and proprietary information, 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.”