Volkswagen locks horsepower behind paid subscription

In the U.K., Volkswagen equips the ID.3 with a 228bhp engine, then requires customers to pay a subscription to unlock the full performance of the vehicle they've already purchased.

Background

Volkswagen follows the trend of modern car manufacturers: selling vehicles with the hardware capabilities to enable certain functionalities, then controlling access to said features by software-locking them behind a paywall. This marks a shift from how cars have worked since their invention, as they're no longer independent devices, requiring constant connection to the manufacturer's servers. This change isn't driven by necessity but rather represents a new business model prioritizing:

• Recurring revenue through subscription services
• Collecting drivers’ data that is then sold to insurance companies

How it works

Every exemplar of the ID.3 model is equipped with a 228bhp engine, but customers who don’t pay extra to enable full power get their engine capped at 201bhp. The process works like this:

• Full power is available as a factory option
• It can be added to certain cars (even second hand ones) that weren't optioned that way originally
• It is available as a monthly or yearly subscription (£16.50 per month or £165 per year)
• It can be bought outright for a one time charge of £649

This means every customer purchases a car with a fully powered engine, but can't use it without paying an additional fee. Since the manufacturing cost is already included in the vehicle price, customers essentially pay twice for the same engine.

See also

• BMW feature lockout scandal
• Mazda remote-start subscription
• BMW's heated seat subscription
• Software locks