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BMW will not charge extra to activate existing functions in cars

BMW has announced that it will not be charging customers for activating hardware-based functions in their cars. While the company plans to introduce more paid-for on-demand services and functions in future models, it wants to ensure that customers do not feel they are being made to pay for functions that were previously standard.

Like many other car manufacturers, BMW is leveraging the increasing connectivity of cars to offer over-the-air updates, which allow for the addition of new functions. However, the company faced backlash last year when it offered a monthly subscription to activate heated seats in certain models.

When asked about BMW’s approach to avoid charging extra for functions, Pieter Nota, the firm’s board member for sales and marketing, explained, “We have experience with that, and gauging customer response is part of our process.” He further added, “Our focus is now on ‘functions on demand’ that are software and service-related products, such as driving assistance and parking assistance, which customers can add later or for functions that require data transmission that customers are accustomed to paying for in other areas.”

Nota also emphasized that BMW will no longer offer seat heating as an on-demand function, stating, “It’s either in or out. We offer it from the factory, and you either have it or you don’t have it.” He noted that customer acceptance of paying to activate seat heating later was low and mentioned perception as a contributing factor to the decision to discontinue that offering.

Regarding the services that could potentially be charged for, Nota explained, “Software-based services, like downloading a parking assist product, are well-accepted. People understand that it’s a certain piece of software they can download for a cost, much like downloading a film or an extra feature on an app. We are increasingly successful with this approach.”