Volvo's Chief Commercial Officer understands that charging for heated seat subscriptions is simply another method to 'nickel and dime' customers.

Volvo's Chief Commercial Officer understands that charging for heated seat subscriptions is simply another method to 'nickel and dime' customers.

      Volvo

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      Software connectivity is often highlighted as a means to enhance vehicles even after purchase, yet some car manufacturers are exploiting it to extract additional money from customers by placing features that should be standard behind a paywall. Volvo, however, stands apart from this trend and has no intention of following suit, as stated by Eric Severinson, the company's chief commercial officer, in a recent interview with Motor1.

      “If you're offering a premium product, you shouldn't be charging customers for every little thing: someone who spends around $80,000 shouldn't have to pay an extra $5 a month for fundamental features like heated seats—especially when such features come standard in much less expensive cars,” Severinson remarked. “That’s not the right approach.”

      “A paid model may be sensible for more extensive software-based services, such as connectivity packages or advanced driver-assistance systems, potentially bundled together,” Severinson noted. “Similar to services like Netflix or Disney+, a subscription can grant access to additional, valuable content.” However, he emphasized that for essential features, this is not an appropriate direction for a premium brand.

      “The aim is to ensure that customers perceive they are receiving a premium, hassle-free experience—which ultimately creates value and, consequently, profit.”

      This aligns with comments made by Volvo's chief engineering and technology officer, Anders Bell, during a roundtable discussion in 2024. At that time, Bell mentioned to The Drive that while subscriptions for software-based features might have potential, he was skeptical about restricting access to hardware that is already installed in the vehicle through subscription fees. This sentiment appears to resonate with consumers.

      Car buyers have consistently voiced their opposition to making basic features subscription-based. A 2023 study by Cox Automotive revealed that nearly half of the respondents might consider paying a subscription fee for features such as parking assistance, but not for heated seats and steering wheels. Additionally, three out of four participants agreed that such subscriptions are merely a cash grab. A 2025 report from software management firm Smartcar showed that 76% of drivers had not subscribed to connected features like WiFi.

      Subscription models for connected services have quietly become the norm in the industry (often with lengthy free-trial offerings), yet automotive manufacturers are persistently promoting the subscription model for other features despite public resistance. In the wake of significant backlash over subscription fees for heated seats, BMW remains dedicated to implementing subscriptions for other features. Similarly, certain models from Kia, Mercedes-Benz, and Volkswagen are set to offer additional horsepower or faster acceleration for an extra fee.

Volvo's Chief Commercial Officer understands that charging for heated seat subscriptions is simply another method to 'nickel and dime' customers. Volvo's Chief Commercial Officer understands that charging for heated seat subscriptions is simply another method to 'nickel and dime' customers. Volvo's Chief Commercial Officer understands that charging for heated seat subscriptions is simply another method to 'nickel and dime' customers.

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Volvo's Chief Commercial Officer understands that charging for heated seat subscriptions is simply another method to 'nickel and dime' customers.

According to Volvo's Eric Severinson, customers who spend $80,000 on a new car shouldn't be required to pay monthly fees for heated seats.