Buyers in a number of countries will now have to pay a subscription fee to get the seat heaters in their BMW vehicles to work.

The German automaker has been hinting it could take this approach for more than a year. And it’s not alone. Toyota was considering a plan requiring owners to pay an ongoing fee to use the remote start for their vehicles. It’s all part of a concept known as both “software as a service” and “software-defined vehicles.” General Motors and Stellantis have forecast software-based service revenues could reach $20 billion annually by the end of the decade.
BMW has been charging for various features for several years. And it now it’s doing so to use heated seats in a handful of countries including Germany, New Zealand, South Africa and South Korea.
Those subscriptions can add up
While the automaker hasn’t provided details, reports indicate an owner will pay around $18 a month to activate the front seat heaters, though they can save a bit with an annual $180 subscription, or $300 for three years. The alternative is to pay $415 for “unlimited” use.

You’ll pay another $10 a month for a heated steering wheel — with one-year, three-year and unlimited options also available. In some markets, meanwhile, BMW is also demanding $305 to activate Apple CarPlay.
Automakers like BMW have long charged for telematics systems, other systems you’ll pay for include Hyundai’s Blue Link and General Motor’s OnStar. In fact, GM brands Buick and GMC include the base three-year OnStar subscription into the sticker price of the vehicle.
A GM spokesperson told TheDetroitBureau.com buyers have the option to shut down the connection, but they may not opt out of paying for it. The price ranges from $905 and $1,675. The move aims to increase the number of users for the system by “us bringing it to them rather than them coming to us,” said the GM official.
Over-the-air updates

But manufacturers are looking for ways to create even more microtransactions. Some will cover new features and functions, noted Yves Bonnefont, the chief technology officer at Stellantis. “You might choose a feature that will improve your car’s performance, or increase the range of your electric vehicle,” Bonnefont told TheDetroitBureau.com.
In years past, Tesla offered buyers the option of activating only part of the potential range of such vehicles as the Model S for a discounted price. They could later pay a fee to get the vehicle’s maximum range.
Some companies have set up subscription plans for their semi-autonomous driving systems, including the Tesla Autopilot, Ford BlueCruise and GM Super Cruise. They justify that approach by pointing to the need to constantly maintain and update mapping data, while sending users updated software using smartphone-style over-the-air updates.
Consumers push back

But BMW is one of several manufacturers planning to go to a subscription model for features traditionally either included in a vehicle’s purchase price or offered as an option. The updated electrical architecture it’s rolling out on new products makes this easier and could soon cover features like active cruise control, automatic high beams and other advanced driver assistance systems.
How well this idea will be accepted is far from certain. BMW has already received sharp criticism for its plan to charge for using seat heaters already installed in its vehicles. That appears to have convinced the automaker not to follow that model in the U.S., and a spokesman for the automaker’s British Mini brand told TheDetroitBureau.com it won’t use a subscription model either.
Toyota, meanwhile, backed down after it received significant pushback from customers over a plan to require a subscription to use its vehicles’ remote start function.
A study released in late April by Cox Automotive found less than a third of American motorists saying they welcome subscription services — even if that came as an alternative to paying for features like seat heaters up front.
“Automakers either have to change customer behavior — which we know isn’t easy — or they’re going to have to come up with features with a lot more value,” said Cox analyst Michelle Krebs.

Expect even more subscription services
Carmakers are, indeed, looking at other ways to generate subscription or pay-per use features. For one thing, they can provide a revenue stream years after a vehicle rolls off the assembly line. And it lets them monetize some of the trends reshaping the auto industry. As autonomous driving becomes commonplace in the coming decade, expect to see automakers offer in-car entertainment features, as well as mobile shopping services.
In an industry where profit margins are generally tight, executives such as Stellantis CTO Bonnefont believe software as a service could generate substantial cash. The Euro-American automaker has forecast revenues of more than $20 billion annually by the end of the decade.
During a Wolfe Research “fireside chat” in February, GM CEO Mary Barra cited internal research concluding motorists are, on average, willing to spend $135 a month for onboard software, subscriptions and services and the necessary hardware.
So, like it or not, BMW’s new subscription service could be the harbinger of what’s to come.
Hopefully, we can find a low overhead hacker who’ll do it for only $5/month.