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Businesses Digital Apple

Ford Taps Apple Exec To Build High-Margin Digital Services (reuters.com) 32

Ford has hired former Apple executive Peter Stern to help build new high-margin digital and subscription services. Reuters reports: Stern, who previously oversaw Apple TV+, iCloud and Apple News+, will report to Ford CEO Jim Farley. In his new role, Stern will focus on integrating hardware, software and services across the company's Ford Blue, Model e and Ford Pro units. Like other U.S. automakers, Ford is looking to expand beyond its traditional wholesale-to-dealer business model and build recurring revenues from services connected to its vehicles, much as Apple has built on its hardware products.

Stern joins an executive team at Ford that includes another Apple alumnus, Doug Field, who is chief advanced product development and technology officer. [...] Stern said Ford plans to create "bundles of services" that will provide "safer, more convenient and more productive experiences." "The basis for differentiation is shifting from the vehicles alone to the integration of hardware, software and services," Stern said.

One of Stern's first tasks is to help expand Ford's BlueCruise hands-free driving package, which is being extended to more vehicles in the 2024 model year. Ford will install BlueCruise hardware on another 500,000 vehicles next year, while giving customers the option of activating the subscription package at any point during ownership, rather than just at time of purchase. The automaker plans to offer BlueCruise in a wider variety of Ford and Lincoln models, including F-150, F-150 Lightning, Expedition, Navigator, Nautilus and Corsair.

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Ford Taps Apple Exec To Build High-Margin Digital Services

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  • by memory_register ( 6248354 ) on Monday August 14, 2023 @05:03PM (#63767392)
    No fuel efficiency or power steering without that subscription!
    • Has anybody actually offered something that's not a service only by subscription?

      The only sort-of example I can think of is Toyota Remote Start, where the internet-enabled version is tied into the keyfob-to-car version (boo!)

      • Has anybody actually offered something that's not a service only by subscription?

        The only sort-of example I can think of is Toyota Remote Start, where the internet-enabled version is tied into the keyfob-to-car version (boo!)

        Subaru. Subscription, or you don't get remote start, remote temperature readings (who cares?), any of the app functions for seeing tire pressure, oil life, etc. I had all that nonsense free with my GM cars years ago, but I'm sure GM is, if they haven't already, devising ways to make that a pay forever subscription.

    • surge pricing for the brakes and airbags
    • They are probably in panic mode trying to catch up with GM...

  • by Luckyo ( 1726890 ) on Monday August 14, 2023 @05:05PM (#63767398)

    You get nothing but what law mandates. ABS legally mandated? Ok, you get that. Advanced traction control features beyond that? 9.99 a month. You get basic windshield wipers. Want automatic control from the camera already installed in the car? That's another 9.99 a month. Want heated seats? Another 9.99 a month. Working bluetooth? 9.99.

    But wait, there's more. If you buy everything at once, we can offer a package deal for just 29.99 a month, but you have to commit for three years. You save 25%! Isn't safety of your children worth the 29.99 that you get with advanced traction control?

    • by redback ( 15527 ) on Monday August 14, 2023 @05:11PM (#63767410)

      these posts always bring the fear that its going to be another heated seat subscription.

      I don't have a problem with the concept of paying for a service that is actually a service. online connectivity or map updates or whatever. Do something for the money that im giving you.

      What I don't like is being told I have to pay a monthly fee to use hardware I already bought from you.

      Bluecruise is kinda bridging the gap here, but they better think long and hard about what needs to be a paid fucking service.

      • Agreed - how much ongoing service is actually required for self-driving to work is an open question which depends on how it is implemented. The technology is not viable if it requires an un-interrupted high bandwidth connectivity to a data center, since that isn't reliable. On the other hand, traffic information changes continuously and costs money to collect, but is not really necessary either, so it seems likely to require a subscription.
        • On the other hand, traffic information changes continuously and costs money to collect

          Traffic information is already collected and is available very cheaply.

          I can see traffic congestion in Google Maps, for which I pay $0.

          The trick is to track cell phones instead of cars. Most cars have at least one cell phone inside, and cell towers already triangulate their positions so they can properly route calls. If a phone was recently moving faster than a person can walk, then it is likely in a car. If it suddenly stops moving, it is likely because traffic stopped.

          Google gets this information from pho

          • I can see traffic congestion in Google Maps, for which I pay $0.

            What!? I thought google was the very epitome of over-commercialized, enshitified, big-tech, "you-promised-you'd-never-be-evil" evil! Wake up sheeple, you're the product!

            Or,

            how about software updates? It's pretty obvious that self-driving software will never be "done" within the next couple decades, and can be sold now only on the basis of, "we'll keep working on it." So, does that justify charging a subscription to receive updates devel

      • by Luckyo ( 1726890 )

        No one that matters cares what pay piggy wants. The only thing that matters is what pay piggy can be pressured to pay for. Wants can be one of the vectors through which pressure can be applied, but it's only one of many vectors, and one of the less potent ones.

        Fear for example is a far better motivator. So is status seeking. So is perception of need regardless of it being false or true.

    • dealer only repair with part serialization & dealer only pairing tools.

      • dealer only repair with part serialization & dealer only pairing tools.

        And that former Apple exec probably gets 30 percent of the fee for every subscription feature sold?

      • by Luckyo ( 1726890 )

        And intentional points of failure like in pretty much every apple product, with ban on OEMs selling parts to anyone but original manufacturer, so you have to go to OEM for massively overpriced repairs on everything.

    • by x0ra ( 1249540 )

      Working bluetooth? 9.99.

      Is there even such a thing ?

  • this is them renting basic features of your car to you. Paying yearly for heated seats is only the beginning. Your radio is next. Probably AC & heat will follow.

    Cars are rapidly becoming unaffordable but at least here in America they're still mandatory for a basic existence. So car companies are looking for ways they can drain us of every penny (while getting heavily, heavily subsidized in the form of free roads and parking) without us turning to horrible things like walkable cities and mass transit
    • Car companies are giving consumers what they want.

      Cars are more expensive because cheap new cars don't sell well.

      Those who can't afford a nice new car prefer to buy a nice used car rather than a cheap new car.

      • What are you smoking? Nobody wants a more expensive car but what are you supposed to do, walk or take non existent public transport? Some people don’t want a used car or the maintenance so they buy new. Can you even buy a new car for under $20k today?

        • Can you even buy a new car for under $20k today?

          Nissan Versa is under $16k + tax new with a manual transmission.

          • There were also more cheap cars like the Fiesta, Yaris, etc., but people will rather take out a 72 month loan so they can get the biggest truck possible.

            Those who can't afford that have to buy used.

    • ...without us turning to horrible things like walkable cities and mass transit.

      People that want to live like that and with that already live in those types of major urban cities.

      Not everyone wants to live like that and, thankfully, America is plenty large enough to provide choices in living conditions and lifestyle for all.

  • by RitchCraft ( 6454710 ) on Monday August 14, 2023 @05:42PM (#63767448)

    Auto subscriptions. Leeches.

  • We need to fight back, HARD!

  • Let me guess, you will have to pay Ford every time to be allowed to charge your car.

    Will it auto detect what brand your tyres are and for "Safety" you will need to have "Genuine cartridges...I mean tyres" installed


    But thanks for the heads up so I will not consider a ford vehicle anymore.
  • Let the onboard cameras record as dashcams then charge for cloud storage of the video. It's so painful to have to buy a dash cam kit for a car or truck that already has cameras with full coverage built in.
  • His CV has nothing which suggests he would be suited for product development. He's a salesman.

    Shouldn't Ford be trying to grab people like Håvard Nord, Mattias Ettrich, etc? You know, people who actually understand how to build platform development teams and deliver reliable products?
  • I am one of those oddball people who doesn't pair their phone to their car. I also found the cellular antenna (which was a nightmare to pull the dash) and soldered a 50 ohm load across it. Friends thought I was crazy but one day a friend's car didn't start. It was a lease and even though they paid their bill the car was remotely disabled (through the OEM cellular interface) because of some accounting/billing error.

    In my mind a car needs zero connectivity to the world. You put gasoline or diesel in and ge
  • Preppers like to have old cars without electronic ignition just in case the EMP happens. You can scoff at them all you want but they may inadvertently be on to something though not in the way they thought. Once people have accepted cars that are constantly connected to the internet, the next step is cars that have to be connected to the internet. Once people have fallen into that trap, you can bleed their bank accounts dry over time. Just look at what Utah, of all places, is doing to EVs. Instead of a

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