{"id":11844,"date":"2023-10-06T08:01:45","date_gmt":"2023-10-06T07:01:45","guid":{"rendered":"https:\/\/www.autocar.co.uk\/car-news\/business-software\/editors-letter-why-dont-car-makers-throw-all-software-free"},"modified":"2023-10-06T08:01:45","modified_gmt":"2023-10-06T07:01:45","slug":"editors-letter-why-dont-car-makers-throw-all-software-in-for-free","status":"publish","type":"post","link":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/2023\/10\/06\/editors-letter-why-dont-car-makers-throw-all-software-in-for-free\/","title":{"rendered":"Editor’s letter: why don’t car makers throw all software in for free?"},"content":{"rendered":"

\"BMW<\/a><\/p>\n

BMW’s attempt to charge for already installed heated seats shows there’s a balance to be struck<\/p>\n

\n

One of the more unpopular moves in the automotive industry in recent times was BMW<\/a>\u2019s attempt to charge customers to \u2018activate\u2019 hardware options that were already fitted in their cars, such as heated seats.<\/p>\n

\u201cPeople feel that they paid double \u2013 which was actually not true, but perception is reality, I always say,\u201d BMW sales and marketing chief Pieter Nota told Autocar last month. \u201cSo that was the reason we stopped that.\u201d<\/p>\n

Instead, the firm will focus on charging for software upgrades, which BMW has also experienced bad press with before when it tried to charge \u00a3295 to access the in-built Apple CarPlay functionality, a move it also reversed.<\/p>\n

This time, Nota said the likes of \u201cdriving assistance and parking assistance\u201d features will be available for buyers to upgrade to, something Nota says \u201ccustomers are used to paying for in other areas\u201d.<\/p>\n

We\u2019ll see, but car makers sense an opportunity to make money on cars long after they\u2019ve left forecourts and potentially through multiple owners, and they\u2019re not going to give this opportunity up easily.\u00a0<\/p>\n

\u201cIt will play a role,\u201d Volkswagen<\/a> boss Thomas Sch\u00e4fer told me at the recent Munich motor show when asked if this was an area VW was looking into also off the back of BMW\u2019s recent moves, with a working committee looking at its potential now. \u201cThe question is always: what are customers really prepared to pay for? That varies from model to model and brand to brand.<\/p>\n

\u201cWhat BMW did\u00a0I think the customer would expect [the chargeable options you could activate] to be in the vehicle, not to unlock it with additional money.\u00a0<\/p>\n

\u201cYou need to find things that customers are really happy with. There\u2019s definitely revenue potential in it but don\u2019t try and sell them Spotify access or something. It\u2019s a tight balance between additional value that you\u2019re happy to pay for and not.\u201d<\/p>\n

It is indeed a balancing act\u00a0and, at the moment, it feels a bit of a wild west in who\u2019s offering what, for how much and what it\u2019s called. I\u2019ve spent some time in a Range Rover Sport recently, and when exiting the vehicle one day, it offered me a software upgrade through an over-the-air update that had a long list of improvements that would be made to the car. This was welcomed.\u00a0<\/p>\n

At the other end of the scale, there is BMW\u2019s approach with features on demand, something also done by Polestar. My colleague Matt Prior ran a Polestar 2 last year and was offered the chance to give the car an extra 67bhp and 15lb ft of torque in a \u00a31000 performance upgrade, also done remotely via a software patch.\u00a0<\/p>\n

It all feels quite murky and subjective: should you be paying for extra performance in a car, but not a better infotainment system? Where does the value come from and who sets the price? Does it transfer ownership when the car is sold and what does that then mean for residual values if not?<\/p>\n

Software is one of those intangible assets that is hard enough to price on its own, but when it\u2019s put alongside a piece of hardware – a car – costing tens of thousands of pounds wearing the badge of a brand that has values and perceptions attached to it, then that job gets harder still. That software better be faultless to operate as well, should car makers charge after the vehicle’s original purchase.\u00a0<\/p>\n

Rather than charging for constant upgrades and new features, perhaps the business case could be the opposite and a brand could win by throwing it all in for free. When pricing gets involved, so does competition.<\/p>\n

Sch\u00e4fer\u2019s committee, like others that will be looking at this in the industry, have their work cut out to convince the court of public opinion if this is ever going to take off.\u00a0<\/p>\n<\/div>\n\n

Commercials Cooperation Advertisements:<\/b><\/h2>\r\n


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BMW’s attempt to charge for already installed heated seats shows there’s a balance to be struck<\/p>\n

One of the more unpopular moves in the automotive industry in recent times was BMW\u2019s attempt to charge customers to \u2018activate\u2019 hardware options that 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