Volvo Won’t Copy BMW’s Money Grabbing Subscription Plan
Volvo has confirmed it will not charge owners monthly subscriptions for basic features such as heated seats. Instead, fees will only apply to major updates. Speaking to Bloomberg, the Swedish luxury brand’s Chief Operating Officer Bjorn Annwall made clear Volvo has no plans to nickel and dime customers.
“If you are to charge for software updates, it must be a step change in consumer benefit,” he said. “We will not ask people who have bought a car for one million kronor ($96,500) to pay another 10 kronor to get extra heat in the seat.”
Annwall’s heated seat example can be traced back to BMW who began charging South Korean customers an $18 monthly subscription for the feature a few months ago. A significant amount of customer blowback was the result.