Volvo Rejects Heated Seat Subscriptions as 'Nickel-and-Dime' Tactics Persist in Auto Industry

Automakers are increasingly leveraging software connectivity to monetize features after purchase, often placing basic functions behind paywalls. Volvo, however, stands apart from this trend, according to Eric Severinson, the automaker’s chief commercial officer.

In a recent interview with Motor1, Severinson condemned the practice of nickel-and-diming customers for essential features. He argued that a $80,000 vehicle should not require an additional $5 monthly fee for heated seats—especially when those same features are standard on far less expensive cars.

“If you sell a premium product, you shouldn’t nickel-and-dime customers: someone spending about $80,000 shouldn’t be asked for another $5 a month for basic functions like heated seats—especially when those features are included on much cheaper cars. That isn’t the right path.”

Severinson acknowledged that subscription models could be justified for advanced or software-based services, such as connectivity packages or driver-assistance suites. He compared these to platforms like Netflix or Disney+, where subscriptions unlock valuable content. However, he emphasized that basic hardware features should not be subject to such models for a premium brand.

“The goal remains to make the customer feel like they’re getting a premium, hassle-free experience—that’s what creates value and, in turn, profit.”

This perspective aligns with remarks made by Volvo’s chief engineering and technology officer, Anders Bell, during a 2024 roundtable. Bell expressed skepticism about subscriptions for hardware features already installed in vehicles, questioning their fairness.

Consumer Backlash Against Subscription Models

Public opinion strongly opposes monetizing basic features through subscriptions. A 2023 Cox Automotive study found that while nearly half of respondents might pay for features like parking assistance, heated seats and steering wheels were widely rejected. Additionally, 75% of surveyed drivers viewed subscriptions as a cash grab.

A 2025 report from Smartcar, a software management firm, revealed that 76% of drivers had not signed up for subscriptions to connected features such as WiFi.

Industry Trends Contrast with Volvo’s Stance

Despite widespread criticism, subscription models for connected services have become the industry norm, often with extended free-trial periods. However, automakers continue to push subscriptions for other features, even amid public backlash. For example:

• BMW remains committed to subscriptions for various features, despite heated seat controversies.
• Kia, Mercedes-Benz, and Volkswagen have introduced subscription-based upgrades, such as additional horsepower or faster acceleration, on select models.