Car companies expect to make billions charging customers recurring fees for vehicle features.Manufacturers see dollar signs, but buyers aren't thrilled about the idea.
As vehicles become increasingly connected to the internet, car companies aim to rake in billions by having customers pay monthly or annual subscriptions to access certain features. Not content with the relatively low-margin business of building and selling cars, automakers are eager to pull down Silicon Valley-style profits.
For automakers, the advantage of this model is clear. Not only do they get a stream of recurring revenue for years after an initial purchase, they can hope to maintain a longer-term relationship with the customer and build brand loyalty, said Kristin Kolodge, vice president and head of auto benchmarking and mobility development at J.D. Power.