A report in the Detroit news says that 66% of vehicle buyers are not willing to pay for any kind of subscription services, and only 25% were willing to pay $5 or $10 per month for any service. Toyota buyers dropped the key fob service when they learned they had to pay $8 per month to keep using it. DO THE MATH! We have seriously overestimated what people will pay for in-vehicle services, including cameras that will only give you a video of someone driving away in your vehicle.
12 replies (most recent on top)
If I can’t trust a Ford vehicle to not be recalled for defects, how can I possibly trust Ford with my personal data?
I saw first hand how Ford handled warranty data. They have no clue how to reduce warranty claims. Now, Ford wants to collect and sell data?? Haha. 😆
People wanting living rooms on wheels are the customers and employees Ford targets.
In my day we had windows we rolled up and down by hand…that’s the way it was and we liked it !
Ford spends more on warrantee claims than it will ever make on selling data.
Given Fords track record their apps will be unstable and unreliable as well
The revenue numbers in the billions being thrown around for vehicle data sales are ridiculous. To get to even $1 Billion, every one of the two million vehicles sold last year would have to buy a subscription worth $500. Not happening.
And wait, there’s more! Every time there is an accident, your insurance company will be demanding access to your vehicle data, so they can try to use it against paying your claim. For those of us who use a vehicle for transportation, not an entertainment center, there is no good reason to connect your vehicle to a data collector.
I drive an older non connected vehicle..... By choice. First OEM they comes out and says they will always make non connected options will win by life-long business. Bonus if an ICE is an option. I'm not down for these glorified golf carts they companies are pushing.
I mean... some people pay for XM radio... when you can have a far more personalized experience with Spotify for much, much less money. The beauty of all of it is the choice. Choices rock. (Not to the downvoters... everything they can't afford sucks, I guess.)
Meantime, I'll pay the $199 annual Kia Connect and wouldn't think twice about it. I love having access to every feature my car offers. The ability to start and set my climate remotely, send destinations to my nav system remotely and, while in the car, use the voice activated features... all those are just no-brainers for me.
I can safely say there is exactly zero chance I'm going to subscribe to any kind of vehicle service. Not. Gonna. Happen. Vehicles are unaffordable as it is.
Okay, math time. We sold under two million vehicles in 2021. If we can get a $120 annual subscription from 100% of the buyers, that is $240 million annual revenue. Does not cover the expenses of the Smart Mobility group, which last posted were somewhere north of $300 million. Good thing we know JF, HR, and Phoebe from the Free Ford Press monitor this site, perhaps they can respond to the huge discrepancy.
Vehicles cost too much as it is. No way am I paying an additional monthly service for extras. People have been hanging on to their cars longer for the past decade (at least) and not getting a new car every 5-6 years or sooner. The car companies need to make up the difference in profits somehow.
I have a 2009 Toyota Camry that's still going strong. Will never buy a Ford even if it's the last auto manufacturer on earth.