A Carmaker’s $23 Billion Plan To Keep You Paying Long After You’ve Bought Your Car

[Joe Money]

A Carmaker’s $23 Billion Plan To Keep You Paying Long After You’ve Bought Your Car
This is all being presented as investing in software, which is funny.

If you look at headlines about Stellantis’ new money-making scheme, things seem pretty innocuous. “Stellantis Bets on Software,” says the Wall Street Journal. “Stellantis launches $23 billion software push,” says Automotive News. Software sounds good, right? Well, something else is at play here: subscription services that keep you paying long after you’ve bought your car. All that and more in The Morning Shift for December 7, 2021.

1st Gear: Stellantis Thinks It Can Make $23 Billion Per Year On In-Car Subscriptions
The company we used to know as Fiat-Chrysler is far from alone in pushing subscription services. VW also quickly comes to mind, but I just want to make clear that this is what looks like an industry trend, not just a Stellantis thing.

But what Stellantis is planning is rather ambitious. From Automotive News:

Stellantis plans to generate around 4 billion euros ($4.5 billion) in additional annual revenues by 2026 and around 20 billion euros ($23 billion) by 2030 from software-enabled product offerings and subscriptions.
Presenting its long-term software strategy on Tuesday, the automaker said it expected to have 34 million connected vehicles on the streets by 2030 from 12 million now.

This is not going to be a “we’ll update it when necessary” kind of thing. This is going to be an offensive, judging by this line from Stellantis:

“We really see software as a growth opportunity, something that can make a huge difference,” [Chief Software Officer Yves] Bonnefont said, adding that updates that could be done every quarter would bolster profit margins.

On the one hand, it will be good for you to be able to upgrade your old car with more modern advances. Hell, even I upgraded my 1974 Volkswagen to have disc brakes not drums. Upgrades aren’t a bad idea. It’s just that expecting to pull in billions of dollars per year on software updates sounds more like a kind of revenue extraction than something done in the interest of the consumer.

A Carmaker's $23 Billion Plan To Keep You Paying Long After You've Bought Your Car - Jalopnik

If you look at headlines about Stellantis’ new money-making scheme, things seem pretty innocuous. “Stellantis Bets on Software,” says the Wall Street Journal. “Stellantis launches $23 billion software push,” says Automotive News. Software sounds good, right? Well, something else is at play...

jalopnik.com

 

[Soul On Ice]

 

[djpolo]

A Carmaker’s $23 Billion Plan To Keep You Paying Long After You’ve Bought Your Car
This is all being presented as investing in software, which is funny.

If you look at headlines about Stellantis’ new money-making scheme, things seem pretty innocuous. “Stellantis Bets on Software,” says the Wall Street Journal. “Stellantis launches $23 billion software push,” says Automotive News. Software sounds good, right? Well, something else is at play here: subscription services that keep you paying long after you’ve bought your car. All that and more in The Morning Shift for December 7, 2021.

1st Gear: Stellantis Thinks It Can Make $23 Billion Per Year On In-Car Subscriptions
The company we used to know as Fiat-Chrysler is far from alone in pushing subscription services. VW also quickly comes to mind, but I just want to make clear that this is what looks like an industry trend, not just a Stellantis thing.

But what Stellantis is planning is rather ambitious. From Automotive News:




This is not going to be a “we’ll update it when necessary” kind of thing. This is going to be an offensive, judging by this line from Stellantis:

On the one hand, it will be good for you to be able to upgrade your old car with more modern advances. Hell, even I upgraded my 1974 Volkswagen to have disc brakes not drums. Upgrades aren’t a bad idea. It’s just that expecting to pull in billions of dollars per year on software updates sounds more like a kind of revenue extraction than something done in the interest of the consumer.

A Carmaker's $23 Billion Plan To Keep You Paying Long After You've Bought Your Car - Jalopnik

If you look at headlines about Stellantis’ new money-making scheme, things seem pretty innocuous. “Stellantis Bets on Software,” says the Wall Street Journal. “Stellantis launches $23 billion software push,” says Automotive News. Software sounds good, right? Well, something else is at play...

jalopnik.com

This the way a lot of companies been going. Adobe pulled that BS sub service. Thank goodness you can still get it anyway.

Toyota's remote start key fob feature requires an $8 monthly subscription | Engadget

Toyota's remote start key fob feature requires an $8 monthly subscription
It applies to models 2018 and later, with a free trial from 3-10 years.

To the consternation of some owners, Toyota's remote start key fob functionality requires a paid $8 per month subscription service, The Drive has discovered. The issue only applies to 2018 and later models, but recently came to light as the free trials of Toyota's Remote Connect subscription started to expire.

Toyota lets you start vehicles like the RAV 4 PHEV remotely in two ways. One is over WiFi/LTE using its Remote Connect apps that cost $8 per month or $80 per year. The other is by using the key fob, which requires that you be relatively close to the vehicle.

Unless they read the fine print, however, owners may not have known that the key fob method was also part of the Remote Connect subscription. Toyota confirmed to The Drive that you'll need a paid subscription on every 2018 and newer Toyota model to use the function.
Complicating the situation is that most buyers received a free three-year or 10-year Remote Connect trial depending on whether they had the Audio Plus or Premium Audio trim options. So for at least the first three years of ownership, the remote key fob start method would have worked without a hitch — but it's now expiring for 2018 models.


The issue was originally spotted by car shopping site CoPilot last summer. Owners are particularly irked that Toyota has linked the key fob remote start function to Remote Connect, since the key fob doesn't require an app in any way. What might be extra galling is that the limitation doesn't apply to pre-2018 cars, because Toyota didn't want to update them from 3G to LTE networks.
Toyota isn't the first automaker to charge for key features on top of the price of the car. Mercedes also requires a subscription in Europe for rear-wheel steering in its new EQS electric car. And after charging buyers a monthly fee for Apple CarPlay, BMW backtracked and included the feature for free.

 

[bgbtylvr]

They own a shitload of car brands. May be worth a buy at below the current $18.

 

[Soul On Ice]

A Carmaker’s $23 Billion Plan To Keep You Paying Long After You’ve Bought Your Car
This is all being presented as investing in software, which is funny.

If you look at headlines about Stellantis’ new money-making scheme, things seem pretty innocuous. “Stellantis Bets on Software,” says the Wall Street Journal. “Stellantis launches $23 billion software push,” says Automotive News. Software sounds good, right? Well, something else is at play here: subscription services that keep you paying long after you’ve bought your car. All that and more in The Morning Shift for December 7, 2021.

1st Gear: Stellantis Thinks It Can Make $23 Billion Per Year On In-Car Subscriptions
The company we used to know as Fiat-Chrysler is far from alone in pushing subscription services. VW also quickly comes to mind, but I just want to make clear that this is what looks like an industry trend, not just a Stellantis thing.

But what Stellantis is planning is rather ambitious. From Automotive News:




This is not going to be a “we’ll update it when necessary” kind of thing. This is going to be an offensive, judging by this line from Stellantis:

On the one hand, it will be good for you to be able to upgrade your old car with more modern advances. Hell, even I upgraded my 1974 Volkswagen to have disc brakes not drums. Upgrades aren’t a bad idea. It’s just that expecting to pull in billions of dollars per year on software updates sounds more like a kind of revenue extraction than something done in the interest of the consumer.

A Carmaker's $23 Billion Plan To Keep You Paying Long After You've Bought Your Car - Jalopnik

If you look at headlines about Stellantis’ new money-making scheme, things seem pretty innocuous. “Stellantis Bets on Software,” says the Wall Street Journal. “Stellantis launches $23 billion software push,” says Automotive News. Software sounds good, right? Well, something else is at play...

jalopnik.com

the price gouging and nickle and diming is out of fucking control bro

 

[850credit]

The workaround eventually will be to take your used car and change it over to electric. Companies are out there now that will do the conversion. Whether or not it's cost effective right now depends on your situation.

You need to own your car free and clear just like your house. No way would I buy a depreciating product that I also had to factor a subscription service into the cost of ownership.

 

[Rembrandt]

yeah you won't even own a car by 2030, it will just be a subscription that runs the cost of a car payment now only it will go forever. no one wants to sell you anything anymore. just want you to pay forever.

 

[michigantoga]

This is what they're doing with the HUMMER

 

[gene cisco]

The elite always win.

 

[Flawless]

Was listening to the Ford CEO and they see the future of cars being a subscription model

 

[zod16]

Was talking to friends about this earlier as this is quickly becoming the norm. Reminds me of the old articles you see where they are debating if cable tv will eventually have ads since the users are already paying a monthly subscription fee.

WILL CABLE TV BE INVADED BY COMMERCIALS? (Published 1981)

www.nytimes.com

 

[World B Free]

Worse than a student loan....

 

[DMXtreem]

Never for me!!!

 

[Rembrandt]

its like software now. if i only want one thing I cant even just pay for it and live my life. its rude. its also why people bootleg and hack.

 

[RUDY RAYYY MO]

yeah you won't even own a car by 2030, it will just be a subscription that runs the cost of a car payment now only it will go forever. no one wants to sell you anything anymore. just want you to pay forever.

Folk struggling to pay car notes will jump on this, the average note today is $500 month. 50 a month for 10 years...shidddd lol

 

[Ceenote]

Straight bullshit

 

[Ceenote]

its like software now. if i only want one thing I cant even just pay for it and live my life. its rude. its also why people bootleg and hack.

Bootleg man stay on point

 

[BronxBomber]

CEO of Lyft said years ago people wont own cars in the future....