Thread regarding Ford layoffs

I am not going to pay for a subscription for what should come with the car. I have a lot of patience to wait, unless it is a high-end status symbol, the average person is not going to want to pay for a "service" that is actually a function that was always available in prior years. I will go start my car and let it warm up myself. If I can't start my car or connect my phone without a subscription, I don't buy that car. How stupid and lazy are car companies? Make something worth paying for or somebody else will, they always do.

@1uct+1khx5Ph9 We agree on "the Ford vehicle is the platform to deliver the subscription to the customer" part. Therefore, we need to focus on delivering a good "hardware" first, and worry about the "software" or subscription later on.

So if I use the gamers or phone companies as comparison, I noticed they use simpler electronic hardware, not a complex electro mechanic system, they spend less than a $1000 for hardware unit, instead of tens of thousands of dollars, they reach a greater market than a car manufacturer, and have lesser chances of being sued by their customers.

Maybe, and this might be a very novel thought for some people at Ford, we are trying to be somethin we are not. And when companies leave their tried-and-true ways, while trying to be something they are not, it ends in disaster.

BTW, I don't care anymore what happens to the company. I can get another job (I am in the process right now) and enjoy my life, but I doubt Bill Ford and the rest of their family, even with all their millions, can actually live happily knowing they screwed one of the biggest American companies, which happened to be their inheritance.

I just don't want those duffus in 1 American Rd. thinking they were able to trick everybody with their lies. As an engineer, I can tell quickly when something in my field is BS, since the technical side is based on science, which is not woke, and it doesn't care for anybody's feelings.

Post ID: @1nea+1khx5Ph9

You need to re-frame the way you look at this. Focus on the fact a vehicle is just the platform to which you deliver the subscriptions to the customer. Same as the smartphone is the platform to deliver app revenue.

Guess what I have done since August 22nd? I have cut much of my non-essential spending, meaning subscription based services. I will not buy a car that requires me to pay a monthly fee for remote start or any other trivial functionality. Also we all need t support "right to repair", that the company hired a John Deer executive was troubling to me. Farmers have been facing huge costs and inconvenience because new equipment can only be serviced by Deer. All of these people want to go to direct sales through Ford and get rid of the dealers need think this through, it could have unintended consequences.

@1bqt+1khx5Ph9 so true. And it security sucks. Flip the right DIDs and you can get the subscription feature for free.

Ford doesn't get it.

Wait for all the “jailbreaks” come out for all the vehicles, just like they do with the phones that unlock all the features that become free. For a one time cool price, you can find a teenager who will unlock all the features of your vehicle.

@rme+1khx5Ph9 Let's say that what those managers say is true, and Ford can make $2 billion on subscription sales. I hope you and those managers realize that:

• FMC is spending over $1 billion dollars on generating those subscription sale numbers...
• FMC used to make over $160 billion on revenue selling vehicles, and over $10 billions on profits...
• Ford subscription sales need to be applied to Ford vehicles, so in order to sell subscriptions, we need to sell vehicles first...

So in the best case scenario, subscription sales will be some small token, but could NEVER replace the actual vehicle sales. So why are we putting so much emphasis on subscription sales and not in vehicle sales? We should be talking about supporting Ford Blue, the money maker, and not Model E, the money loser (one of them).

@rme+1khx5Ph9

“I don't understand why Ford's exciting subscription services weren't listed in that article, that is very disingenuous on the author's part.”

Because Ford has no “exciting subscription services.”

"probably closer to $334 Millions"

This is untrue. Our leadership have already proven that the connected-data and subscription business can yield over $2 billion. I saw the data myself in several townhalls.

I don't understand why Ford's exciting subscription services weren't listed in that article, that is very disingenuous on the author's part.

There are a couple of problems with the current subscription model in vehicles. First of all, you have to sell something valuable, and that customers will keep using. For instance, gamers buy the hardware (console, phone, computer) and the game itself. The subscription provides them with access to multiplayer games, new challenges, etc. This new value or content is OUTSIDE the hardware and current software. Some of the "subscriptions" in the vehicles are just arbitrarily limiting the current hardware capabilities of the vehicle, and then "offer" them for money. Besides the legal aspects of this practice, it will be easier for people to hack their vehicles than pay a subscription.

The other issue with subscription sales is the competition. While there are only a handful of game networks, there are many more vehicle manufacturers in the world. I am afraid that at one point, most of those subscriptions are going to be included in the vehicle sale, just to get a customer. Therefore, all those efforts for the subscriptions will be moot.

Regarding the subscription sales at Ford, the main issue I see is the "billions in revenue" that upper managers are expecting. Office 365, one of the biggest subscription in the world, provided $20 billion revenue to Microsoft last year. However, only 22% is from personal usage. 78% of that revenue is generated by businesses, which normally are more careless with their expenses, since they can deduct it from their profits to pay less taxes. Since most of the Ford Blue/Model E subscription sales are made for personal usage, and there are more computers than vehicles in the world, we can expect CONFIDENTLY that our subscription revenue is going to be less than $4.4 billion annually, probably closer to $334 Millions (Ford has a 7.6% of market share). For that, we have spent billions of dollars in Mobility, Argo, and what else the "brains" of the BoD had deemed necessary.

Do they make an app to keep it out of the shop.

What a miserable hassle.

The only subscription we've ever offered that has a chance is Blue Cruise (d-mbest name ever). However, those that want it have to pay to have the equipment installed at the factory, and then have to pay $600 for three years. After 3 years it goes to a monthly subscription model. And of course we have no one outside of the 3 years yet as the models this was for are all 1-2 years old.

My guess? The renewal rate on that will be low. Think less than 10%. Why? Because it is only available for expressway and highway driving. Do you really want to pay $15/month for occasional use? I think that is a pretty tough sell.

All our other subscriptions are either not ours (SiriusXM owns satellite radio subs and AT&T owns WIFI hotspot subs), or are awful and/or available on your phone already. Like live traffic. We are constantly coming to the party late with these subscription services and then wonder why our take rates are in the toilet.

As soon as Farley reads this he will send our subscription menu over to Phoebe and the article will be updated to show Ford is the leader in generating subscription revenue.