“Getting Experience”: VW Expands Car Subscriptions

Saturday, 4 September 2021

“Gather Experience”
VW expands car subscriptions

Sharing instead of ownership? It also works with cars. Anyone who wants to be mobile with a motorized vehicle can fall back on the subscription offer. A VW manager says some customers shy away from long-term commitments.

The finance division of the VW Group is looking to gradually develop new subscription models for cars, with classic leasing and loan financing as an important pillar. Stefan Imme, head of digital at Volkswagen Financial Services (VWFS), said ahead of the start of the IAA auto show in Munich, the growing trend of short-term use rather than owning vehicles provides opportunities here. “You can tell that some clients shy away from long-term relationships,” Imme says. “Instead, they are interested in greater flexibility and want to be able to change vehicles more often.” This shortens the “holding period”.

VWFS primarily serves as an additional sales channel for its cars in the largest European car conglomerate. Braunschweig residents will also be heavily involved in new digital projects, for example for billing functions for autonomous driving in the future – VW CEO Herbert Diess is planning an integrated mobility platform. The financial assistant also provides insurance, maintenance or refueling and charging services. According to Imme, e-mobility is growing rapidly, so the latter is becoming more important – and that’s where subscription concepts come into play.

Similar to borrowed or leased cars that don’t have to be bought outright, the manager expects a familiar and familiar effect: “With a subscription, customers can gain experience in electric driving and charging and thus increase barriers to entry.” can remove.” In the auto business, two developments are currently converging: “a sort of ‘Netflix model of use’ on demand and a willingness to try it out before you commit. Subscription concepts that fit well between short-term rental and leasing.” are.”

By the end of the year, 2000 to 3000 copies of the ID.3 and ID.4 e-models from the VW Core brand should be available. There are also models from other brands in the group, including selected combustion engines, sold through VWFS and Hekar – this has been true for some time. There are additional subscription plans for subsidiaries such as Skoda or Seat.

focus on data

A related topic is the activation of individual functions of on-board software such as some driver assistants or navigation services. “Development of these offerings is the responsibility of individual group brands,” explained Imme. “But even here, for example, payments are handled by VWFS. We will also work with brands to see how we can build more interfaces.”

The role of usage data is increasing significantly. This applies to company car fleets and business with consumers alike: “The more networks and – in the future – autonomous cars are on the road, the more important it is to properly control the entire fleet. It is important to use less usage data for private customers along the entire life cycle of the vehicle – of course, always provided that you agree to the evaluation.” Consumption, mileage, maintenance information or driving profiles can be a basis from which to “grow new, personalized offers and perspectives for further advice”.