Car subscription features are becoming the next software battleground

BMW became the public symbol of car subscription backlash, but it is not the only automaker trying to turn vehicle features into recurring digital revenue. Mercedes-Benz, General Motors, Toyota, Ford, Volkswagen, Audi, Stellantis and Tesla have all experimented with connected services, software unlocks, paid driver-assistance packages or app-based vehicle functions.

The important point is not that carmakers suddenly discovered subscriptions. Some connected services, such as GM’s OnStar, have existed for decades. What has changed is the technical architecture of the car itself. Modern vehicles are no longer isolated mechanical products. They are software-defined, cloud-connected, app-controlled platforms with embedded cellular modems, over-the-air update systems, digital identity layers and feature-entitlement databases.

That is why subscription features are not going away. Heated seats created the most visible controversy, but the real business model is much larger. Automakers want to sell software after the car has already left the dealership. They want recurring revenue, post-sale upgrades, usage-based services and a direct digital relationship with the driver.

The question is whether customers will accept this new model. So far, the answer is mixed. Drivers tolerate subscriptions when the feature clearly depends on servers, maps, cellular data, driver-assistance validation or cloud infrastructure. They resist when the subscription appears to unlock hardware already installed in the vehicle.

This article looks at how other automakers are approaching subscription-based vehicle features, where the model has worked, where it has failed, and why the real story is not only business strategy but vehicle IT architecture.

Why this is bigger than BMW

BMW’s heated-seat controversy became famous because it was easy to understand. The heating elements were physically inside the car, but the user was expected to pay for activation in certain markets. That felt like a paywall on hardware. BMW remains the most visible example of the subscription-feature debate because its heated-seat controversy made the ownership problem easy to understand. We covered BMW subscription features in more detail in a separate article, including ConnectedDrive, software activation and why the company still sees digital services as part of its long-term strategy.

Other automakers learned from the backlash, but they did not abandon the idea of paid digital features. Instead, many shifted the language. They talk about connected services, software upgrades, driver-assistance packages, app functionality, digital extras, function stores and post-purchase personalization.

The wording is different, but the technical model is similar. The car contains hardware, sensors, control modules and connectivity. The manufacturer’s backend decides which functions are active for a specific vehicle, user account, region, plan or trial period.

This is closer to the smartphone and SaaS world than to traditional car ownership. A feature is no longer simply present or absent. It can be installed but inactive, active for one year, bundled with a trial, transferred to a second owner, locked to an account, updated over the air or removed if the service is discontinued.

That is the real change. The car is becoming a licensed computing platform.

Mercedes-Benz and the paid performance unlock

Mercedes-Benz created one of the clearest examples of a software-activated performance subscription with its “Acceleration Increase” option for some electric models. The idea was technically simple: the vehicle’s electric drivetrain was already capable of producing more performance, but the higher output could be unlocked through a paid digital upgrade.

This was not like adding a larger turbocharger, a new exhaust system or a different battery pack. The hardware was already present. The limitation was software-defined. Mercedes later offered different pricing structures, including non-monthly or lifetime-style options in some markets, but the basic concept remained controversial because it turned performance into a licensable software state.

From an IT perspective, this model is logical. Electric vehicles are controlled by power electronics, battery management systems, motor controllers and central software. Torque delivery, acceleration mapping and thermal limits are already software-managed. If the car can receive an OTA update, the manufacturer can alter performance characteristics without touching the vehicle physically.

From the customer’s perspective, the reaction depends on framing. If the buyer sees it as a post-sale upgrade, it may feel acceptable. If the buyer sees it as artificial restriction of an already purchased drivetrain, it feels like paying twice.

Mercedes also offers DRIVE PILOT in specific certified areas. Unlike a simple hardware unlock, this type of automated driving feature is easier to justify as a paid digital service because it depends on validated road coverage, high-definition mapping, sensor fusion, legal approval, software maintenance and operational design domain restrictions. Mercedes says DRIVE PILOT relies on a 3D high-definition map and is certified for major freeways in California and parts of Nevada.

That distinction matters. A performance unlock looks like a paywall. A certified automated-driving service looks more like an ongoing software and infrastructure product.

General Motors and the OnStar model

General Motors is one of the oldest examples of connected-car monetization. OnStar launched long before the current subscription debate, and it normalized the idea that safety, remote assistance, emergency support and vehicle connectivity could be sold as services rather than one-time hardware features.

In 2024, GM announced that OnStar One Essentials would be included at no additional cost for eight years with every new 2025 Buick, Cadillac, Chevrolet and GMC vehicle. The included package covers features such as Automatic Crash Response, remote vehicle commands and voice-assistance functions. OnStar’s own current page also states that 2025 and newer GM vehicles come with OnStar Basics, including select remote commands, crash help and voice assistance.

This is a smarter subscription strategy than charging immediately for every connected function. GM effectively makes the connected layer part of the vehicle experience for a long initial period. That lowers resistance, keeps users inside the ecosystem and creates a path to paid plans later.

But GM also shows the privacy risk of connected-vehicle monetization. In 2026, the FTC finalized an order with General Motors and OnStar over allegations involving collection and sale of geolocation and driving-behavior data without adequate notification or consent. The order restricts sharing certain data with consumer reporting agencies and requires stronger transparency, consent, access, deletion and opt-out options.

This is where the IT side becomes more important than the subscription price. A connected car is not just a car with an app. It is a telemetry endpoint. It can report location, driving behavior, diagnostics, feature usage, account status and software state. The more automakers depend on subscriptions, the more valuable the data layer becomes.

GM’s model is commercially successful because OnStar has scale. Industry reporting in early 2026 said OnStar closed 2025 with about 12 million global subscribers. But the privacy dispute shows the trade-off: the more connected the vehicle becomes, the more customers and regulators will question what data is collected, how it is used and who profits from it.

Toyota and the remote start backlash

Toyota faced criticism over remote start because many drivers saw the feature as something that should belong to the vehicle, not the subscription plan. The controversy became especially sensitive when customers believed key-fob remote start functionality was linked to a connected-service subscription.

Toyota later said that making key-fob remote start part of a subscription plan was unintentional, after substantial backlash. Toyota’s current Connected Services positioning focuses on trials and subscriptions for audio, entertainment, navigation, safety and connected functionality.

Toyota’s case is important because remote start sits in the grey zone between hardware and cloud service. App-based remote start clearly requires cloud infrastructure, cellular connectivity, authentication and backend routing. Pressing a key fob near the car feels local, physical and already paid for.

That distinction is critical. Customers may accept paying for remote access through a smartphone app because the command travels through Toyota’s cloud, mobile network infrastructure and vehicle telematics module. They are much less likely to accept paying for a local key-fob command if the hardware and radio link already exist.

This is an RF issue as much as an IT issue. A traditional key fob uses local radio communication. A connected app command uses mobile data, cloud APIs, identity management and a vehicle modem. The user sees both as “remote start,” but the underlying architecture is different.

Automakers need to explain that difference clearly. If they fail, customers assume every subscription is simply a locked feature.

Ford and BlueCruise

Ford’s BlueCruise is one of the more defensible examples of a vehicle subscription because it is not just a hidden switch inside the car. It is a hands-free highway driver-assistance system that depends on mapped roads, software versions, sensor inputs, driver monitoring, lane detection and approved operating areas.

Ford describes BlueCruise as a hands-free highway driving system that works on designated “Blue Zones.” It requires driver attention, visible lane markings, vehicle sensors and supported road sections. Ford also lists different BlueCruise software versions with features such as lane-change assist and automatic lane change.

Ford reduced BlueCruise pricing in 2024 and introduced clearer options. For 2025 model-year vehicles, Ford said a one-year plan would either be included standard or available for $495 depending on the vehicle. Ford’s support page lists annual, monthly and one-time purchase options for BlueCruise.

This is closer to a software-service model than a heated-seat-style hardware lock. BlueCruise requires ongoing validation, road data, software maintenance and liability-sensitive updates. A subscription is easier to justify when the feature depends on a maintained digital operating domain.

The risk for Ford is price sensitivity. Many drivers may use hands-free driving only occasionally. If the annual or monthly price feels too high relative to real-world usage, the take rate will suffer. Ford’s decision to lower pricing suggests that automakers are still discovering what customers are willing to pay for driver-assistance software.

The technical lesson is clear: advanced driver-assistance subscriptions may survive, but only when they are visibly tied to continuous software improvement, mapped infrastructure and real customer value.

Volkswagen and digital extras

Volkswagen is also moving into post-purchase digital features. VW Connect and related digital extras allow users to activate selected services through an app or in the vehicle. Volkswagen says VW Connect lets users add digital extras, and once activated, the relevant functions become available.

Volkswagen’s U.S. Car-Net service includes features such as remote start and stop where equipped, door lock and unlock, horn and lights, last parked location and parking information. These are typical connected-car services: app control, vehicle status and cloud-linked convenience functions.

The more controversial direction is performance unlocking. In 2025, Volkswagen attracted criticism for offering a paid unlock on some ID.3 models to increase power output. Reporting described a monthly fee to unlock additional horsepower.

This is very similar in principle to the Mercedes performance unlock. In an electric car, the motor, inverter and battery system are controlled by software. The manufacturer can define different output levels without changing the physical drivetrain. That simplifies production and creates new monetization options.

But it also triggers the “already installed” objection. If the same motor and power electronics are physically present, customers may see the subscription as artificial throttling. The manufacturer sees configurable software. The driver sees restricted property.

Volkswagen’s success will depend on whether digital extras are perceived as useful add-ons or as withheld capability.

Audi and functions on demand

Audi has one of the clearest brand names for this model: Functions on Demand. Audi UK describes it as a way to unlock features for a month, one year, two years or for the lifetime of the vehicle through the myAudi app. Audi Connect pages also describe Functions on Demand as a way to personalize the vehicle after purchase.

This model is technically elegant. It allows Audi to build cars with standardized hardware and sell software activation later. For customers, it can be convenient. A buyer may not need a feature when the car is new but may want it later. A used-car owner may activate an option the first owner did not buy.

The strongest version of this model includes lifetime purchase options. That reduces the psychological problem of renting a car feature indefinitely. A one-month or one-year option gives flexibility, while lifetime activation preserves a sense of ownership.

Audi’s approach may be one of the more sustainable versions of the subscription model because it explicitly includes different time horizons. The customer can treat the car like a configurable platform, but not necessarily like a permanent subscription trap.

The weak point is transparency in the used-car market. A second-hand Audi may have the required hardware but not the activated function. Dealers, buyers and valuation tools will need to distinguish between installed hardware, active licenses, expired trials and lifetime unlocks.

Stellantis and bundled connected services

Stellantis has moved toward a simplified connected-service structure built around long-term included services and paid add-on packages. In 2026, Stellantis announced an updated connected-services offer with Connect ONE included for 10 years and Connect PLUS available by subscription after a trial period. The updated services include features such as e-ROUTES by Free2move Charge, e-Remote Control and Stolen Vehicle Tracking Assistance.

This is a relatively cautious strategy. Instead of charging separately for every small feature, Stellantis bundles core services into a long included period and reserves the paid tier for enhanced functions.

For EVs and plug-in hybrids, this makes sense. Charging-route planning, battery preconditioning, remote charging control, cabin preconditioning and theft tracking all depend on connected infrastructure. The car communicates with cloud services, apps, charging networks and mapping systems.

This is where subscriptions are more acceptable. The feature is not simply a disabled heating element. It is a service layer that has ongoing server, data and software costs.

However, Stellantis still faces the same long-term risk as every automaker: once customers are used to the connected ecosystem, the manufacturer may be tempted to move more features behind the paid tier. That is where trust can erode quickly.

Tesla and the software-first model

Tesla normalized the idea that a car can change after purchase through software. Over-the-air updates, app control, paid connectivity, driver-assistance packages and software-enabled capability changes are central to the Tesla ownership model.

Tesla’s approach is different from traditional automakers because customers already expect the vehicle to behave like a technology product. A Tesla is sold not only as a car but as a rolling software platform. Updates can change the interface, charging behavior, range estimation, entertainment system and driver-assistance functions.

That makes software monetization easier. Tesla buyers are more accustomed to digital packages, connectivity plans and paid driver-assistance features. The cultural expectation is different from a traditional premium sedan buyer who expects every installed option to behave like permanent equipment.

But Tesla also demonstrates the risk of software-defined ownership. When features depend on account status, software version, regional approval or backend support, the car’s capability becomes less fixed. The car is not only what is physically parked in the driveway. It is also what the manufacturer’s software ecosystem currently permits.

Tesla’s success shows that customers can accept software-defined cars. It does not prove that they will accept every subscription. The difference is perceived value. OTA updates and app integration feel useful. Paying repeatedly for a basic comfort feature usually does not.

Why some subscriptions work

The successful examples usually share several traits.

They require ongoing infrastructure. Live traffic, cloud navigation, stolen-vehicle tracking, emergency call centers, connected apps, driver-assistance maps and remote diagnostics all cost money to operate after the sale.

They improve over time. A driver-assistance system that receives better lane-change logic, expanded mapped roads or improved software versions feels like a maintained product rather than a static switch.

They are transparent. Customers are more willing to pay when the trial period, renewal price, transfer rules and cancellation terms are clear.

They offer a permanent option. A one-time purchase or lifetime unlock reduces resentment because the customer can choose ownership rather than endless rental.

They are not safety-critical in a manipulative way. A feature that affects basic safety, visibility or legally required functionality should not feel hostage to a subscription.

This is why Ford BlueCruise, GM OnStar, Stellantis EV services and Audi Functions on Demand may be more defensible than heated seats or simple performance locks. They are easier to frame as digital services rather than paywalls on hardware.

Why some subscriptions fail

The failed or unpopular examples usually violate the customer’s sense of ownership.

The feature is physically installed.

The customer believes the hardware was included in the purchase price.

The function does not obviously require cloud infrastructure.

The subscription is the only option.

The feature is basic comfort, not advanced software.

The resale situation is unclear.

The price feels disproportionate to usage.

Heated seats, local key-fob remote start and power-output unlocks all trigger this reaction. The customer does not see a service. The customer sees a restriction.

Automakers often argue that software activation allows lower entry prices, simpler manufacturing and post-sale flexibility. That may be true internally, but it does not automatically solve the perception problem. If a customer can see or feel the hardware, charging repeatedly for it feels like digital rent.

The IT architecture behind car subscriptions

Subscription features require a complete technical stack.

At the vehicle level, the car needs electronic control units, domain controllers, infotainment software, embedded security modules and a telematics control unit. The feature itself may be controlled by a body control module, powertrain controller, ADAS computer or infotainment system.

At the connectivity level, the car needs embedded cellular service, sometimes Wi-Fi, Bluetooth, GNSS and secure communication with the manufacturer’s backend. The RF layer is essential because without wireless connectivity, remote activation and cloud verification become much harder.

At the backend level, the manufacturer needs user accounts, vehicle identity, VIN-to-feature mapping, payment processing, entitlement servers, software update infrastructure, regional compliance logic and customer-support systems.

At the cybersecurity level, the system needs secure boot, signed updates, encrypted communication, certificate management, intrusion detection, account protection and rollback mechanisms. A feature unlock is not just a button in an app. It is a chain of trust between the customer account, cloud backend and vehicle software.

At the data level, the manufacturer can collect diagnostics, feature usage, location-related service data, software version information and app interaction logs. That data can improve services, but it also creates privacy risk.

This is why subscription cars are not only an automotive topic. They are an IT and RF topic. The modern vehicle is becoming an authenticated endpoint on a mobile network.

Over-the-air updates make the business model possible

OTA updates are the foundation of the subscription era. Without OTA, every feature change would require dealer visits, physical service campaigns or factory configuration. With OTA, the manufacturer can add features, modify pricing logic, fix software, change user interfaces and adjust feature availability remotely.

This is useful when updates improve the car. Bug fixes, better charging curves, improved navigation, refined ADAS behavior and security patches are real benefits.

But OTA also enables remote control over ownership. If a feature can be added remotely, it can also be restricted remotely. If a vehicle can receive new capability through software, it can also be divided into paid tiers after production.

That is why OTA is both a customer benefit and a business weapon. It gives the car a longer digital life, but it also gives the manufacturer more control after the sale.

Embedded cellular is the hidden subscription layer

Most connected-car subscriptions depend on embedded cellular connectivity. The vehicle contains a modem and SIM or eSIM profile that allows it to communicate with the manufacturer’s cloud. This link enables remote commands, vehicle status checks, emergency calls, map updates, stolen-vehicle tracking, OTA updates and digital entitlement checks.

From an RF perspective, the car becomes a mobile IoT device. It is not very different in principle from an industrial telemetry unit, smart meter or asset tracker, except that it is more complex, more valuable and more privacy-sensitive.

This creates practical dependencies. If cellular coverage is weak, app commands may fail. If the backend is down, subscription services may be unavailable. If the account is misconfigured, the driver may lose access. If the modem generation becomes obsolete, older vehicles may eventually lose connected functionality.

That last point matters. A mechanical feature can last decades. A connected service depends on networks, servers and software support. A car may physically survive longer than the digital ecosystem around it.

Used cars will become harder to understand

Subscription features complicate the used-car market. In the past, a used car’s feature list was mostly physical. If it had leather seats, xenon lights, cruise control or navigation, the buyer could inspect it.

Now the feature list may depend on licenses.

A used car may have the sensors for a driver-assistance system but not the active subscription. It may have heated hardware but no active unlock. It may have connected services included for the first owner but not the second. It may have a lifetime activation tied to the vehicle, or a subscription tied to an account.

This creates valuation problems. Two identical-looking vehicles may have different digital capabilities. A buyer will need to check not only mileage, service history and accident records, but also software entitlements.

The ideal solution would be a standardized digital feature certificate. It would show permanent features, trial features, expired features, subscription features, transfer rules and connectivity requirements. Without that kind of transparency, used-car buyers will face confusion.

Privacy may become the real battleground

The public argument is usually about money, but privacy may become the larger issue.

A subscription vehicle needs identity, telemetry and usage data. The manufacturer needs to know which car is connected, which account controls it, which services are active, whether payment is valid and whether the feature can be used in a given region.

That alone creates a significant data trail. Add navigation, remote commands, charging behavior, driving assistance, insurance-linked services and app usage, and the vehicle becomes a detailed behavioral sensor.

The GM and OnStar FTC case shows that regulators are paying attention. Connected-car data is not abstract. It can reveal where a person goes, how they drive, when they leave home, how often they travel and whether they speed or brake harshly.

If subscriptions expand, customers will ask harder questions:

What data is required for the service?

What data is optional?

Can the user disable collection?

Is data shared with insurers, brokers or partners?

Does cancelling the subscription stop data collection?

Can the driver delete historical data?

Is the car still fully usable without an account?

These questions may determine whether connected-car subscriptions remain trusted or become politically toxic.

Cybersecurity becomes part of ownership

A subscription car must be secure because feature access depends on software authorization. If the system is weak, attackers may try to unlock features illegally, manipulate vehicle accounts, intercept app commands or exploit OTA infrastructure.

The manufacturer therefore needs strong cryptographic control. Updates must be signed. Vehicle identities must be protected. Remote commands must be authenticated. Backend APIs must resist abuse. Apps must be hardened against account takeover.

This adds cost and complexity, which automakers use as part of the argument for recurring revenue. Maintaining secure connected services is not free.

But cybersecurity also changes the ownership relationship. In an older car, the owner could repair, modify or replace many systems locally. In a software-defined car, some functionality depends on cryptographic permission. The car may reject unauthorized modules, block unofficial repairs or require online validation.

That can protect safety and security. It can also restrict repairability and independent service. The same security architecture that prevents hacking can also reinforce manufacturer control.

The difference between fair monetization and digital rent

There is a legitimate version of vehicle software monetization.

A fair model charges for services that require ongoing infrastructure, continuous updates or optional advanced software. It clearly separates cloud services from local hardware. It offers permanent purchase options where appropriate. It transfers lifetime unlocks with the vehicle. It protects data. It keeps safety-critical functions outside manipulative paywalls.

An unfair model charges repeatedly for basic hardware already installed in the car, hides subscription terms, makes resale confusing, ties too much to cloud authorization and treats ownership as a temporary permission.

Customers are not rejecting technology. They are rejecting artificial scarcity.

The future will likely contain both models. Some automakers will use subscriptions carefully and build trust. Others will test the limit and create backlash.

Which automakers look more successful

GM appears successful in scale because OnStar is mature, familiar and bundled into new vehicles for a long initial period. The risk is privacy and data governance.

Ford’s BlueCruise has a defensible technical basis because hands-free driving depends on maps, software validation and supported road sections. The risk is price sensitivity and limited usage.

Audi’s Functions on Demand is structurally interesting because it includes short-term and lifetime options. The risk is used-car confusion and customer suspicion if too many physical features move into the store.

Stellantis has a cautious model with long included services and optional paid connected packages. The risk is future feature creep.

Tesla has the strongest software-first culture, so its customers are more conditioned to digital packages. The risk is that software-defined ownership can still feel unstable when features, pricing or availability change.

Mercedes and Volkswagen face more backlash risk when they sell performance unlocks. Technically, the model makes sense in EVs. Psychologically, it feels like artificial limitation.

Toyota’s remote-start controversy shows how dangerous the grey zone can be. App-based remote commands are cloud services. Local key-fob functions feel like vehicle-owned RF hardware. Mixing the two creates customer anger.

What this means for car buyers

Future car buyers need to ask different questions.

It is no longer enough to ask whether the car has a feature. The buyer must ask whether the feature is permanent, subscription-based, trial-based, cloud-dependent, transferable and usable offline.

A modern window sticker or configurator may not tell the whole story. The hardware may be installed, but the digital entitlement may be separate. The app may show features that expire later. The second owner may inherit some capabilities but not others.

For expensive vehicles, this matters. A premium car with software-locked features may be less attractive than a simpler car with permanent equipment. Buyers will compare not only horsepower, range and interior quality, but also ownership friction.

The best purchase strategy is to prefer lifetime unlocks for hardware-based features and subscriptions only for services that genuinely need ongoing infrastructure.

What this means for techblogs

For an IT and RF techblog, the automotive subscription trend is not just business news. It is a perfect example of how connected systems change ownership.

The car now contains modems, antennas, GNSS receivers, Bluetooth, Wi-Fi, NFC keys, secure elements, OTA clients, app APIs, cloud services, telemetry pipelines and subscription databases. It is a software product with wheels.

That creates technical questions:

How secure is the OTA pipeline?

What happens when cellular networks change?

Can features work offline?

How is vehicle identity managed?

What data leaves the car?

Can independent repair survive cryptographic locking?

Can used-car buyers verify software entitlements?

What happens when a manufacturer shuts down a service?

These are not theoretical questions. They will affect millions of drivers as software-defined vehicles become normal.

BMW is not alone. The entire car industry is experimenting with subscription features, connected-service packages and software unlocks.

Mercedes-Benz and Volkswagen show the controversial side of the model with paid performance unlocks. Toyota shows how badly customers react when local-feeling functions appear tied to subscriptions. Ford shows a more defensible model with BlueCruise because hands-free driving depends on maps, software and validated operating areas. GM shows the scale and maturity of connected services through OnStar, but also the privacy risks. Audi shows a flexible function-store model with monthly, yearly and lifetime options. Stellantis shows a more bundled approach, with long included services and paid connected-service tiers. Tesla shows what happens when the car is designed from the beginning as a software-first platform.

The technical direction is clear. Cars are becoming connected endpoints. Features are becoming software entitlements. OTA updates are becoming normal. Embedded cellular connectivity is becoming the control channel. Cloud services are becoming part of the driving experience.

The business direction is also clear. Automakers want recurring revenue after the initial sale.

The unresolved question is trust. Drivers may accept subscriptions for cloud navigation, remote services, hands-free driving, live traffic, EV route planning and stolen-vehicle tracking. They are much less likely to accept recurring payments for heated seats, local key-fob functions, basic comfort features or power that the vehicle’s hardware already supports.

Car subscriptions will not disappear. But the successful ones will need to look like real digital services, not rolling paywalls.

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