BMW sparked controversy in 2022 when it floated the idea of a new “Features on Demand” program, which would charge owners for access to hardware already factory-installed in their vehicles. In particular, the idea that owners must pay a monthly fee for the use of heated seats has raised more than a few eyebrows and caused a storm of public reaction.
The German manufacturer then quickly clarified that if the customer specifies heated seats at the time of purchase, they “will remain fully functional throughout the vehicle’s lifetime.” However, the company has confirmed that additional features, such as using existing camera hardware as a car camera (dash cam) will continue to be offered as a premium software subscription.
Most recently, she is head of product communications at BMW, Alexandra Landerstold The Drive that introducing an “on-demand” service with a subscription model for heated seats and steering wheel “probably wasn’t the best way to start.” Despite this, Landers defended the model itself, stating that “there is use cloudaand that creates a cost,” and added that “if you use it, we have to pay for it.” She also confirmed that the company is still exploring the idea that customers may want to unlock additional features for a fee in the future.
A trend that is spreading through the industry
The upcoming iX3, for example, will be available with a subscription for a 360-degree camera, as well as the company’s Driving Assistant Pro package, a rival to Tesla’s FSD, which offers advanced cruise control with automatic lane changes and other advanced functions.
“With these established digital offerings, we offer our customers even more comfort and flexibility in accordance with their individual wishes after purchasing a vehicle,” a BMW spokesperson told The Drive.
But BMW is not the only manufacturer that has come under fire for offering additional options as a subscription service. Tesla recently ended the one-time payment option for its Full Self-Driving autonomous driving system, while General Motors has been charging a fee for its OnStar emergency services for decades. What’s more, any “always connected” car eventually requires paying for a data package, otherwise owners must be within range of a Wi-Fi network to perform even the simplest software updates.
While many consumers are willing to pay a subscription fee for digital services, which are becoming an increasingly common sight in today’s software-defined vehicles, the real furore arose when BMW suggested that owners would have to pay for hardware already installed in the vehicle. The German manufacturer backtracked on that decision, but still requires a recurring fee if an owner wants to remotely control their heated seats and steering wheel, arguing that there are associated mobile data and cloud storage costs that need to be covered.