Automakers need to calm down on subscriptions, admits Volvo CTO

There are some features where subscriptions make sense.

Subscription fees to access in-car features seem to be becoming a trend among new vehicles. Automakers are charging monthly or yearly fees for customers to use certain features, which are already installed.

Speaking to a media outlet, Anders Bell, Chief Engineering & Technology Officer of Volvo, admitted that while some subscription models are acceptable, there are few that even he finds hard to justify. Bell stated, "I would have a hard time paying to unlock hardware that I know is [already installed] in the car. So I can understand that there is a [negative customer] reaction to those things—so there’s gotta be a balance in between."

Bell though did highlight that there are some features where subscriptions make sense. He stated, "For example, consumers are comfortable paying for traffic data. We all do that through our phones already, there’s no such thing as free traffic data. I think that’s something that is acceptable."

He further added, "The industry as a whole was super enthusiastic about robotaxis, [immediate] full electrification happening right now, and subscription services. I think in all these three areas we’ve kind of calmed down a bit. My job is to make a fantastic product for the customer—business models we can always debate but we should not have some dream of selling software for a massive income."

Volvo also recently announced that it was planning to offer its latest infotainment system upgrade to all cars dating back to 2020. The company announced that over 2.5 million cars globally will get the latest infotainment upgrade free of cost by 2025.

Source: TheDrive