Volkswagen Proposes Charging a Subscription Fee for Access to Enhanced Car Functions
Volkswagen Introduces Power Upgrade for ID.3 Pure Model in the UK
In a move that underscores the growing trend of cars becoming more like high-tech devices, Volkswagen has announced an optional power upgrade for its ID.3 Pure model in the UK. The upgrade increases the car's horsepower from 148 hp to 168 hp, without the need for any new hardware.
The power upgrade is part of a growing trend of car companies offering subscriptions for additional features. Similar services have been experimented with by other manufacturers, such as Polestar, who also offer transmission or performance upgrade subscriptions. However, Volkswagen's subscription system is currently limited to the UK market and not yet officially launched in Germany.
The motor and battery of electric cars are already capable of supporting higher output, but software limits the power flow. By lifting these software limits, cars can offer more power, much like an over-the-air update can lift a speed cap on a treadmill. Volkswagen argues that the power upgrade offers flexibility, allowing customers to try the extra power for a month or pay once and have it forever.
The power upgrade costs the equivalent of $22.50 a month or $879 for a permanent unlock. This adds 20 horsepower to the car, but Volkswagen claims that the range of the car does not change regardless of the power upgrade. The lifetime upgrade is tied to the vehicle, not the person, potentially improving resale value.
The ongoing debate between manufacturers and drivers revolves around the idea of paying for ongoing services like security patches and performance. Some drivers have expressed concerns about the subscription model, as it can test their patience. BMW experimented with subscriptions for features like heated seats in 2022, but backed away due to pushback.
The power upgrade creates two tiers of otherwise identical cars on the used market, differentiated only by a software key. This raises questions about the future of car ownership and the potential impact on the used car market. Electric cars are often referred to as "computers on wheels," and the concept of "software-defined vehicles" is emerging, where features can be activated long after the car leaves the factory.
As cars continue to evolve into more high-tech devices, it is likely that we will see more subscription-based services offered by manufacturers. The subscription model promises steady revenue for automakers, but it remains to be seen how it will be received by drivers. For now, Volkswagen's power upgrade for the ID.3 Pure model offers an intriguing glimpse into the future of car customisation.
