On Tuesday, Stellantis announced a plan to cultivate €20 billion ($23 billion USD) per year by 2030 via “software-enabled product offerings and subscriptions.” However, the automaker will first need to increase the number of connected vehicles it has sold from 12 million (today) to 34 million by the specified date.

This is something we’ve seen most major manufacturers explore, with some brands firmly committing themselves to monetizing vehicular connectivity through over-the-air (OTA) updates, data mining, and subscription services. Though much of this looks decidedly unappetizing, often representing a clever way for companies to repeatedly charge customers for equipment that’s already been installed.   (Read More…)

Volkswagen recently announced that it plans on making massive amounts of money by introducing more vehicles with over-the-air updates (OTAs), many of which will be able to store and transfer personal profiles so that users can effectively just rent their vehicles for eternity. Additionally, VW has suggested future models will have ability to lock features (that have already been physically installed) behind a paywall that users can unlock via subscription services — things like heated seats, satellite navigation, or even the vehicles top speed.

“In the future, our customers will buy, lease, share or rent cars just for a weekend, and we can use software to provide them with whatever they need over the air,” VW brand’s sales chief Klaus Zellmer said during an online presentation held on Tuesday. “The ID family has been designed for further development, with OTA updates to improve the software’s performance and tailor it to our customers’ needs.” (Read More…)

Following reports that Hyundai Motor Company managed to purchase American engineering and robotics firm Boston Dynamics from Japanese financial conglomerate SoftBank for a cool $921 million, we’ve learned that the South Korean automaker has also fallen into embracing on-demand features. The trend, which is sweeping through the automotive industry to our dismay, basically involves manufacturers hiding vehicle options behind a subscription paywall instead of just letting you purchase the options you wanted upfront.

That means tomorrow’s car shopper might find themselves buying a vehicle that’s already fully loaded from the factory only find themselves forced to unlock heated seats or an upgraded sound system via monthly payments. In our estimation, the whole concept is ludicrously wasteful, diminishes the private resale values of automobiles, and seems like the kind of corporate nonsense reserved for dystopian fiction novels.

(Read More…)

The days of owning an automobile that’s not perpetually connected to various digital networks are quickly coming to a close. On Wednesday, Ford announced most of its redesigned vehicles in the U.S. with have over-the-air update capability after 2020. The automaker is framing this as a way to “repair” your vehicle at home and offer new features after a model has already been purchased.

“Nobody wants to feel like they’re missing out on great features right after spending their hard-earned money on a new vehicle — that’s where our over-the-air updates can help,” said Don Butler, executive director of Ford’s connected services. “We can now help improve your vehicle’s capability, quality and overall driving experience while you’re sleeping.”

While the prospects of giving auto manufacturers remote access to your car are vast, it’s also a double-edged sword. Over-the-air updates would undoubtedly save you a trip to the service center in the event of a code-based recall but it also opens vehicle’s up to privacy concerns and gives automakers new avenues for business.  (Read More…)

Reuters Investigates has a scathing report on foreign workers in Japan at some of Subaru’s most important suppliers. According to the news agency, due to the combination of a booming “Abenomics”, Japan’s 2010 asylum seeker program, and manufacturers looking for cheap sources of expendable labor, foreigners are taken advantage of and treated as second- and third-class workers. Another program meant to help Chinese citizens learn manufacturing skills in Japan is also implicated in helping Subaru take advantage of marginalized immigrant workers.

Subaru isn’t the only automotive manufacturer named as the same suppliers also feed parts to Honda and Toyota.

(Read More…)