Thread regarding Ford layoffs

Billions in subscriptions' revenue... just a dream...

An April study by Cox Automotive found that 75% of consumers are not willing to subscribe to most vehicle features. Drilling down deeper, 92% of respondents said heated and cooling seats should be included in a car's up-front price, and 89% said the same for remote-start functions.

There's a bill working its way through New Jersey's legislature that would ban carmakers from charging on a subscription basis for features that use hardware already built into a vehicle and don't cost the company anything to provide over time. Hackers have helped car owners upgrade their vehicles for years, and subscription features could be their next target, Vice reported.

Still, automakers see dollar signs. Stellantis (formerly Fiat Chrysler), Ford, and GM each aim to generate at least $20 billion in annual revenue from software services by 2030.

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Post ID: @OP+1jQhm6E9

14 replies (most recent on top)

Can I buy a vehicle with AC/Heat, and an engine only? Keep everything extra. Even take out the passenger and rear seats if it saves a few bucks. Crank windows are fine too.

They think I'll pay for a subscription anything, they're out of the f**king minds.

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Post ID: @2xtx+1jQhm6E9

Terminate Franck Louis Victor. Terminate Robert Moser. Shut down FordNext ASAP. Save Ford Motor Company. Jae Park, do your job or you're next, but NOT Ford Next.

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Post ID: @1tpu+1jQhm6E9

@1fon+1jQhm6E9 Airlines charge you for extra services, but it is a one time fee. Which actually save money to some people that need no services. If airlines start charging a monthly fee for baggage, nobody will fly anymore.

Credit cards may charge an annual fee, but the consumer ends with more value in cashback, miles or points than the annual fee.

Regarding new houses, I got one this year, with appliances. So maybe you got yourself a bad deal, buying from a Ford-like construction company.

I consider dishonest to sell something with features disabled to get extra cash. This will end in court, with lawsuits all over the country. It is not the same to have a device, let's say an echo dot from Amazon, and pay for a service as Amazon Music that is NOT in the device (the echo dot cannot store 50 millions songs for example), as buying a device with the 50 millions songs and then pay a monthly fee to keep the device unlocked. Laws about property are very strict in those terms. The seller cannot force the buyer to not use something they bought.

BTW, it will take maybe some years before the common ignorant person, A.K.A shepple, will realize the error in the BEV ways, and in the subscription services, but at one point, like the green crazies in Europe now, they'll realize their mistake. I'll keep my car as long as I can, and I'll wait for the return of sanity in this country.

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Post ID: @1flv+1jQhm6E9

This will work if all automakers charge for options.
Look at the airline industry as an example. Anyone flown lately? Only Southwest gives free bags. Others do if you have a credit card, but charges an annual fee. Don't get me started about Spirit.
And I recently looked at a new construction house, no kitchen or laundry appliances come from the builder.
This is the brave new world, whether you like it or not.

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Post ID: @1fon+1jQhm6E9

@yaz missed the basic math of the goal.

$10E9 annual revenue / $4E6 vehicles = $2.5E3 annual revenue per vehicle

That's in excess of $200 per vehicle per month. We're not going to see that from owner paid subscriptions (unless inflation continues sky-high, but there'll be bigger problems if that happens). The missing piece of the puzzle is that gov't and advertisers will happily pay a bunch of money for private information about you, as unethical as that may be.

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Post ID: @fve+1jQhm6E9

Subscription revenue model is like company begging for money. Don't give them any. Let them go bankrupt.

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Post ID: @obv+1jQhm6E9

@yaz+1jQhm6E9

Define “booming” Blue Cruise subscription revenue. I actually got a big refund from Sirius because they made it impossible to cancel their subscription and there was a class action lawsuit against them that they lost.

Ford's company transformation is all about wishful thinking, smoke and mirrors, and the executives failing to tell the emperor he has no clothes.

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Post ID: @crt+1jQhm6E9

Sign up for only free subscriptions. Don't pay even one dollar.

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Post ID: @zlu+1jQhm6E9

I question the credibility of this study. Every automotive OEM is moving to or considering adopting the subscription revenue model. This study was from April, which may be out of date already for representing what our customers want today and in the future.

If none of you have realized, the Blue Cruise subscriptions are booming. Plus, most of you are already subscribing to a service in your vehicle and do not even realize it, Sirius satellite radio!

Now do you get it? This is what Ford's company transformation is all about and I cannot wait for the future.

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Post ID: @yaz+1jQhm6E9

We've bought a few newer vehicles in the last few years, and each one of them came with a free year of subscription service.

Not interested. Not if it's paid. Not even if it's free.

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Post ID: @kxe+1jQhm6E9

Every CEO has his/her own agenda. As new management comes, new agenda comes together. As the old management left, the old agenda left too. Most recent faded one is Argo AI. It is just like your PR. There are regular and stretch objectives.

The key is the sequence of events. Management left first before their "vision" got axed. So, there are always great business decisions backed by many good reasons. But there is no one there to account for the bad. This is the only consistency you can find at Ford.

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Post ID: @fat+1jQhm6E9

Worldwide in 2021, Ford sold less than 4 million vehicles. To generate $10 billion in subscription revenue from that, every single one of those vehicle owners must sign up for subscription services amounting to over $2,500 per year. We’ve already learned that 75% of vehicle purchasers will spend zero dollars on subscriptions, and many people think $8 per month is too much for some subscriptions.

$10 billion in annual subscription revenue IS NOT HAPPENING, EVER. The sooner we terminate the jobs in Ford Next that are working only to keep their paychecks coming anD not contributing a penny to profitability, the better off we will be.

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Post ID: @fsn+1jQhm6E9

Who still buys trash stock named ford? How d-mb are these people. There will be no upside only downside.

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Post ID: @fuf+1jQhm6E9

When business leaders see everyone gleefully opt in to the gene therapy subscription model, they conclude that everyone is a total mo--n, and that they can get away with something similar in their industry. If you think what they are doing is wrong, look in the mirror to find the reason they are doing it.

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Post ID: @aqw+1jQhm6E9

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