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Mercedes, BMW Roll Out Subscription Service Plans

January 19, 2018 1 Comment

Subscription services are the next big thing, and the automotive world is hopping on the bandwagon. Cadillac, Porsche, and Volvo are rolling out plans of their own, and Mercedes-Benz and BMW won’t be left behind. Both of the German luxury automakers are planning to launch limited subscription programs this year to test the services out.

An automotive subscription service buys access to a car for a monthly fee that includes insurance, maintenance, and the ability to switch cars. Most of the subscription programs are currently geared towards high-end clients, costing several thousand dollars a month.

Volvo will offer a more affordable package this spring, the Volvo XC40, part of the all-inclusive-except-for-fuel Care By Volvo program, for about $600 a month. The package offers the choice between two trim levels on a single model.

According to a recent al.com report, Mercedes already has subscription plans operating in Germany and Italy.
Driving-Sales-Automotive-News-BMW-Mercedes-Roll-Out-Subscription-Car-ServicesBased on statements from management, BMW is less sure than Mercedes when it comes to the new service. Any pilot program the automaker launches will likely be very limited in scale, probably only serving one market to begin with.

“We are in the phase of looking at it and evaluating together with BMW Financial Services,” said CEO of BMW North America Bernhard Kuhnt. “And if we are going to do it, we are going to pilot it first to learn more about it.”

Mercedes wants to test the long-term merit of the program, but first wants to iron out any potential issues, global sales chief for Mercedes Britta Seeger said in a statement to Automotive News.

Most services are still in the early stages. It will be interesting to see how they develop and change the automotive market, as well as how they may affect car ownership in the future.


RELATED: Volvo Wants to Sell Cars Like Mobile Carriers Sell Phones

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  • Feb says:

    Is it the same idea as GM’s MAVEN offered in the USA?