Photo: FIA.com
Volkswagen is preparing for the day when autonomous driving finally arrives and it’s doing so with a word of caution: “It’ll cost you!”
Speaking with Top Gear just recently, Volkswagen sales and marketing boss Klaus Zellmer detailed an option the carmaker is considering right now, that of offering autonomous capabilities on a car on an hourly subscription base. In other words, if you want your car to drive itself from point A to point B, it will be able to do it. But you will have to pay, and that’s probably the bad news.
For the record, Zellmer was discussing Level 4 autonomy, which is better than what we have right now but not full, complete autonomy (that’s Level 5). He said over-the-air updates allow carmakers to cut down on production costs, by having all the tech on board right from the factory, and then enabling options according to customers’ requests.
His theory is that making a Level 4 autonomous car is expensive, so it’s not for everyone. However, if all Volkswagen cars had the technology on them and VW would enable the features at a cost, then this could be a profitable business.
Another potential bad news is that he’s throwing numbers like €7 ($8.45) an hour, saying it’s cheaper than what you’d have to pay for a train ticket in standard class. Be that as it may, it’s more expensive than what other carmakers are already charging: GM, for instance, is offering Super Cruise for $25 a month as a standalone, or $15 bundled with an OnStar plan.
The hourly subscription approach is also profitable with used vehicles, Zellmer says. For instance, second-hand cars could see a boost in residual value by enabling certain features that the previous owner did not want.
In the end, it’s all a matter of demand and supply, so that people will pay for stuff they need, when they need it. Including the ability to have the car drive itself in certain conditions. “Going forward, we see the future as accessing mobility when you need it, not committing to owning one car for several years,” Zellmer explains.
For the record, Zellmer was discussing Level 4 autonomy, which is better than what we have right now but not full, complete autonomy (that’s Level 5). He said over-the-air updates allow carmakers to cut down on production costs, by having all the tech on board right from the factory, and then enabling options according to customers’ requests.
His theory is that making a Level 4 autonomous car is expensive, so it’s not for everyone. However, if all Volkswagen cars had the technology on them and VW would enable the features at a cost, then this could be a profitable business.
Another potential bad news is that he’s throwing numbers like €7 ($8.45) an hour, saying it’s cheaper than what you’d have to pay for a train ticket in standard class. Be that as it may, it’s more expensive than what other carmakers are already charging: GM, for instance, is offering Super Cruise for $25 a month as a standalone, or $15 bundled with an OnStar plan.
The hourly subscription approach is also profitable with used vehicles, Zellmer says. For instance, second-hand cars could see a boost in residual value by enabling certain features that the previous owner did not want.
In the end, it’s all a matter of demand and supply, so that people will pay for stuff they need, when they need it. Including the ability to have the car drive itself in certain conditions. “Going forward, we see the future as accessing mobility when you need it, not committing to owning one car for several years,” Zellmer explains.
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