The automotive industry is seeing a shift towards subscription-based services, with automakers like BMW and Mercedes-Benz offering optional upgrades for a fee. BMW’s attempt to charge a monthly fee for heated seats was met with low acceptance from users, while Mercedes-Benz continues to offer Acceleration Increase for its EQ models. Volkswagen is also following suit by offering a power upgrade for its electric ID.3 in the UK.
According to a report by Auto Express, Volkswagen’s UK consumer site lists the ID.3 Pro and Pro S models as having 201 horsepower instead of the full 228-hp output, with the option to activate the power upgrade for a fee. The cost options include £16.50 per month, £165 per year, or £649 outright. While this may seem like a small cost compared to the overall price of the car, it raises concerns about nickel-and-diming customers, especially those who are leasing rather than buying.
The automotive industry’s shift towards subscription-based services reflects a desire for new revenue streams in a challenging economic climate. Automakers are increasingly relying on software to enhance and control various features in vehicles, leading to restrictions on ownership rights. Software licenses and copyright laws play a significant role in determining what users can do with the software embedded in their vehicles.
In a recent incident, Mazda sent a cease-and-desist letter to a developer who had created integrations connecting Mazda vehicles to home automation software, citing copyright infringement. This highlights the issue of ownership rights in the digital age, as automakers argue that customers do not fully own the vehicles they purchase due to software restrictions.
As automakers continue to embed more software into vehicles, the practice of paywalling features like horsepower and safety functions may become more common. Volkswagen’s experiment in the UK serves as a cautionary tale for car buyers everywhere, emphasizing the importance of understanding ownership rights and the implications of software restrictions in modern vehicles.
