News

Ford expects to get “a lot of revenue” through subscription services

It has been Jim Farley himself, CEO of Ford, who has given consistency to a rumor that had been sounding strongly in the American firm, but that they are also thinking of adopting other companies. Remote Software Updates (OTA) are here to stay in the automotive industry. Many car manufacturers already make use of this technology to keep their car software up to date. Nevertheless, Ford goes a step further and already sees the possibility of receiving a monthly subscription for certain advanced services in their cars of the next few years.

This is not new news for the car manufacturing sector, since other companies such as Mercedes and its payment for the EQS steering rear axle or the Premium Connectivity service for Tesla, are examples of the technology and the possibilities that open for future launches of connected cars. From Ford they assure that this is a clearly booming market and for which customers will be “willing to pay tens of thousands of dollars for certain services”said the CEO.

These services to which Farley refers are those related to driving assistants or other elements that can make the user’s life much more comfortable and safe. The figures that Ford manages for this market are around $20 billion annually by 2030. This advance will come hand in hand with the services that the Ford Pro department will offer from 2025 and that, together, will generate more than 45,000 million dollars in revenue by the beginning of the next decade.

From Ford they are clear that they will not leave this space free for another competent company to take over the bulk of this market, as well as its benefits. It is because of that already prepares a whole arsenal of services by subscription after having carried out a feasibility and interest study for the users of their models.

In the American brand they are aware of the number of possibilities that this advance opens, such as a subscription service to obtain heated seats during the months that the harsh winter lasts or news for the navigation system, among others. However, through the study carried out by the brand for its users, it has determined that your customers will only be willing to pay considerable economic amounts for safety services behind the wheel, as well as by different assistants. For this reason, Ford will put much of its interest in launching advanced functions for “hands-free driving” such as BlueCruise and ActiveGlide.

These systems will allow the driver to be less active behind the wheel, and even Farley already mentions advances regarding fully autonomous driving, something very similar to what Tesla is already promoting in its electric cars. This, according to the CEO, is the only advance for which users are willing to really pay a lot of money. In fact, compared to the aforementioned Tesla, Farley assured that his customers will pay tens of thousands of dollars to have this autonomous driving technology.

On this, it clearly emphasizes the similarity in the paradigm shift that it will suppose compared to driving or current vehicles, something very similar to what Apple did when it launched its first smartphone and forever changed the look on the conventional mobile phone. Farley believes that if a driver can sleep 45 minutes behind the wheel while the car autonomously drives him to his job, it will be an immediate win-win for many.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button