Subscription programs have not become financially viable for the dealer, manufacturer or consumer, BMW National Dealer Forum Chairman David Sloane said.
“It’s been difficult for automakers to figure out subscription fleet sizes and product mix,” Sloane said. “It’s important manufacturers test these different business models, but it’s also good that, when they don’t work, they acknowledge that.”
Automakers have had mixed success with vehicle subscriptions. Some programs have struggled to attract enough people who want to pay for the convenience. Others have found customers but struggled to turn a profit.
Book by Cadillac, a subscription service from General Motors, was put on hiatus in 2018 after few customers bit at the service’s $1,800-per-month price. GM is now taking another crack at the program, testing a rebooted version in a dealer pilot.
Ford Motor Co. walked away from its vehicle subscription business last fall, following lackluster demand.
Porsche Cars North America, which launched a subscription program in Atlanta in 2017, is having more success. The sports car maker has expanded the program to Los Angeles, Las Vegas, Phoenix, San Diego and Toronto.
