Mercedes just took a subtle dig at its biggest luxury rival
The German automaker had something to say about a feature in one of its rival's cars.
The name Mercedes-Benz is a name understood by many different types of people as one that makes some of the most luxurious cars available.
In recent years, a variety of automakers including Mercedes (DDAIF) has offered in-car subscription services, which has allowed drivers to "unlock" certain features of their cars. Although the subscription model has been a topic of debate among automakers and their customers, Mercedes swears it does it much differently from a certain rival.
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In a recent interview with Top Gear Magazine, Mercedes-Benz Chief Software Officer Magnus Östberg criticized BMW's (BMWYY) approach to in-car subscriptions, noting that its Bavarian rival's intentions were for all the wrong reasons.
“Our philosophy at Mercedes is that [subscriptions] is going to be a luxury experience. That means we're not ‘nickeling and diming’ our customers. It's more of a holistic experience," Ostberg told Top Gear.
“But yes, our customers of course will have to subscribe to a package and so forth, but we believe that our customers don't want to be ‘nickel and dimed’ in their face. That's not what our customers are looking for.” BMW
In the summer of 2022, BMW made headlines after it started selling a monthly subscription for certain features including heated seats, automatic high beams and adaptive cruise control in select markets including the UK, Germany and South Korea, through its 'ConnectedDrive' program.
The hardware needed for these features were already installed in its cars at the factory, but a software paywall blocked its operation by those who were not subscribed.
Due to massive backlash and low subscription numbers, it dropped the subscription in September 2023. Currently, the brand offers certain features such as Apple CarPlay integration as part of BMW's 'ConnectedDrive' program in select markets, while in the United States, it offers features such as smartphone remote start and custom driving sounds as additional extras.
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Mercedes currently offers a select amount of subscription services for its stateside customers through its Mercedes me connect online store. Owners can choose features such as Drive Pilot, a "conditionally automated driving" system, a dashcam, Beginner driving mode and Valet Service mode, as well as 'Acceleration Increase," which increases the torque and maximum output of Mercedes-EQ electric vehicles.
In-car subscriptions may not be limited to just luxury brands. Ford CEO Jim Farley told Chief Executive magazine in an interview that he sees subscriptions being a $20 billion market by 2030, but demonstrated a more rationalized approach to them for Ford (F) .
“There will be kind of customized software that you can pick and choose off a menu that would make sense for our commercial customers and retail customers,” Farley said during a Ford roundtable event in January 2022. “Maybe dynamic routing or coaching for the driver. I think there’ll be a subscription like we’re used to in content, but it will be customized based on the usefulness of the data.”
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