Volvo CTO Says Automakers Need To Cool It With Subscription Options

Cars have become increasingly more reliant on software and connected technologies in recent years, leading automakers to find sneaky ways of selling certain features to customers rather than including them at no extra cost. Consumer blowback has been brutal in some cases, and Volvo has taken notice.

Speaking at a roundtable discussion during the 2025 XC90’s reveal last week, Volvo Chief Engineering and Technology Officer Anders Bell told The Drive that while some subscription models are acceptable, there are some that even he would struggle to justify.

“I would have a hard time paying to unlock hardware that I know is [already installed] in the car,” Bell told The Drive. “So I can understand that there is a [negative customer] reaction to those things—so there’s gotta be a balance in between.

“There will be more acceptable models developed over the next few years—but without having an over-reliance on making a ton of money selling software,” he added.

When asked if the Swedish automaker has monitored consumer response to the likes of BMW, Audi, and other automakers charging additional fees for features as simple as heated seats, Bell quickly highlighted that not all subscription models are created equal.

“I’m sure we observe it, I’ve only been with Volvo for a year and a half so I don’t have all the discussions going further back, but there are some good subscriptions that make sense,” said Bell. “For example, consumers are comfortable paying for traffic data. We all do that through our phones already, there’s no such thing as free traffic data. I think that’s something that is acceptable.

“The industry as a whole was super enthusiastic about robotaxis, [immediate] full electrification happening right now, and subscription services. I think in all these three areas we’ve kind of calmed down a bit. My job is to make a fantastic product for the customer—business models we can always debate but we should not have some dream of selling software for a massive income.”

Along with the considerably overhauled XC90, Volvo teased an upcoming ES90 electric sedan, as well as an updated infotainment platform that it’s making available to 2.5 million customers worldwide free of charge. The new OS is powered by Google and was originally developed for the EX30 and EX90 EVs. However, most customers with 2020 model-year Volvos and newer should have access to the fresh interface sometime in 2025.

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