In recent years, cars have become increasingly dependent on software and connected technologies. This shift has prompted automakers to adopt clever strategies for marketing particular features to consumers, rather than bundling them at no extra charge. The backlash from consumers has sometimes been severe, and Volvo is taking note of this trend.
During a roundtable discussion for the reveal of the 2025 XC90 last week, Volvo’s Chief Engineering and Technology Officer, Anders Bell, conveyed to The Drive that while some subscription models can be reasonable, others are hard to defend even from his perspective.
“I would find it challenging to pay for unlocking hardware that’s already installed in the vehicle,” Bell stated. “So, I completely understand the negative reactions from customers—there needs to be a balance,” he added.
“In the next few years, we will develop more reasonable models, but without overly relying on generating significant revenue from software sales,” he noted.
When asked about whether Volvo has been tracking consumer reactions to other automakers like BMW and Audi, which charge extra for features like heated seats, Bell pointed out that not all subscription models are equal.
“I’m sure we keep an eye on it. I’ve only been with Volvo for a year and a half, so I’m not privy to all earlier discussions, but I believe some subscription models make sense,” Bell explained. “For instance, consumers don’t mind paying for traffic data since we all already do that through our phones—there’s no such thing as free traffic data. That’s deemed acceptable.”
“The industry, in general, was extremely excited about robotaxis, immediate full electrification, and subscription services. However, I think we’ve all settled a bit in those areas. My primary focus is to create an excellent product for the customer—business models can be negotiated, but we shouldn’t aim to sell software for enormous profit,” he concluded.
In addition to the extensively revamped XC90, Volvo has hinted at an upcoming ES90 electric sedan and an updated infotainment platform, which will be offered to 2.5 million customers globally at no cost. The new operating system, developed for the EX30 and EX90 electric vehicles, is powered by Google. Customers with Volvo models from the 2020 model year and onwards can expect access to this new interface in 2025.
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