Volvo sends Tesla, BMW and Mercedes a small shovel in a controversial topic
While BMW and Mercedes have so far angered some drivers by making some optional extras, Volvo says it doesn’t want to play that little game. to reassure their customers.
Cars are becoming more and more technological and connected, so much so that some today compare them to actual smartphones on wheels. Currently, many manufacturers offer remote OTA updates, such as Tesla, Hyundai or Volkswagen. if it makes it possible to improve certain technical aspects such as charging speed or battery lifethey also enable access to new features.
It is indeed possibleget the option a posteriori for example, we did not select the car when ordering. Brands quickly realized the financial potential of this new feature.
Growing trend
For example, it is possible to buy Autopilot from Tesla for a few thousand euros a few years after you take delivery of your car. As a reminder, the option is calculated for 3800 euros, and fully autonomous driving costs 7,500 euros. But the American brand is not the only company that offers this type of service. And some go even further.
This is especially true for BMW. even offers a monthly subscription to be able to take advantage of certain options. An a la carte app that lets you use features as long as you pay. You then have to pay €80 a year to fit your car with Apple CarPlay and €20 a month to take advantage of heated seats. It is enough to ensure regular income of the brand even after the sale of the car.
Mercedes also saw the potential of this strategy. It offers a €700-a-year upgrade to the EQS in China to improve turning radius thanks to rear-wheel steering. Do you find this offensive? It should be noted that in the USA, the manufacturer offers an option worth 1,200 euros per year to increase the power of EQS and EQE sedans and SUVs. What annoys some customers, then they get the impression that they are being taken for a cash cow.
Fortunately, some manufacturers refuse such practice and intend to announce it. This is also the case with Volvo, which has been offering OTA updates since April who refuses to pay his customers for simple minor improvements. The brand does not hesitate to fight with its competitors on this difficult and controversial topic.
Against a current
is asked by BloombergVolvo CEO Björn Annwall has indeed confirmed this we won’t Ask people who buy a car for 1 million kroner (about €90,100) to pay an extra 10 kroner for extra seat heating.“. For him, the update should be significant enough to be in a position to demand an additional amount from customers. German brands in teeth!
Nevertheless, the Scandinavian manufacturer is not completely against the idea of paying for certain features. But if they bring real changessuch as the advent of 100% autonomous driving. As Björn Annwall explains, this is a real change with an important advantage for the customer. But paying for small improvements like those made to the autonomy of the XC40 and C40 Recharge is out of the question.
According to a report by UBS, the market for paid updates in the automotive industry It can bring in 700 billion dollars (approx. EUR 659 billion) by 2030. This is still significantly less than the $2 trillion announced a few years ago.
Mercedes is launching a new subscription to improve the performance of its electric models. This service will soon be available in the US for $1,200 per year. It won’t be available in Europe because…
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