The name Mercedes-Benz is a name understood by many different types of people as it makes some of the most luxurious automobiles available.
In recent years, a variety of automakers, including Mercedes (DAIF) has offered in-car subscription services, allowing drivers to “unlock” certain features of their cars. Although the subscription model has been a topic of debate between automakers and their customers, Mercedes swears it does it much differently than a certain rival.
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in a recent interview with Top Gear magazineMercedes-Benz Software Director Magnus Östberg criticized BMW (BMWAA) about car subscriptions, pointing out that its Bavarian rival's intentions were for the wrong reasons.
“Our philosophy at Mercedes is that (subscriptions) will be a luxury experience. That means we are not “scrounging” our customers. It's more of a holistic experience,” Ostberg told Top Gear.
“But yes, our customers, of course, will have to subscribe to a package and so on, but we believe that our customers don't want to be fooled. “That's not what our customers are looking for.”
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In the summer of 2022, BMW made headlines after it began selling a monthly subscription for certain features, including heated seats, automatic high beams, and adaptive cruise control in select markets, including the United Kingdom, Germany, and South Korea, to through its 'ConnectedDrive' program.
The hardware needed for these features was already installed in their cars at the factory, but a software paywall blocked their operation for those who did not subscribe.
Due to a massive reaction and low number of subscriptions, it abandoned the subscription in September 2023. Currently, the brand offers certain features, such as Apple CarPlay integration as part of BMW's 'ConnectedDrive' program in select markets, while in The United States offers functions. like smartphone remote start and custom driving sounds as additional extras.
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Mercedes currently offers a select number of subscription services for its customers in the United States. shop.mbusa.com/en-us/connect”>through its Mercedes me connect online store. Owners can choose features such as Drive Pilot, a “conditionally automated driving” system, a dash cam, Beginner Driving Mode and Valet mode, as well as “Throttle Boost,” which increases torque and the maximum power of Mercedes-EQ electric vehicles.
Car subscriptions may not be limited to just luxury brands. Ford CEO Jim Farley said Chief Executive Magazine in an interview which sees subscriptions being a $20 billion market by 2030, but demonstrated a more streamlined approach for Ford (F) .
“There will be some sort of custom software that you can choose from a menu that would make sense for our commercial and retail customers,” Farley said during a Ford roundtable in January 2022. “Maybe dynamic routing or driver training. I think there will be a subscription as we are used to in content, but it will be customized based on the usefulness of the data.”
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