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Car giant brags about huge profit margins on new money grab drivers cannot avoid
UK Mail ^ | 1 May 2026 | SADIE WHITELOCKS

Posted on 05/01/2026 2:03:37 AM PDT by dennisw

Popular Ford feature that has always been free now costs $455

Remember when buying a car meant paying once, grabbing the keys, and driving off into the sunset?

That era may be fading fast. Automakers are quietly transforming the way drivers pay for their vehicles - and your next car could come with a growing list of monthly charges long after you've left

General Motors is leading the charge, betting that subscriptions for features like navigation, safety systems, and hands-free driving will soon become a major profit engine - potentially generating billions of dollars a year and, in some cases, even more than selling the cars themselves.

GM says its software arm keeps about 70 cents of every dollar it makes - a staggering level of profitability in an industry where selling a car typically brings in just 4 to 10 cents on the dollar.

Instead of paying upfront for everything, drivers now get certain features included for a limited time - often just a few years - before being asked to pay monthly or annually to keep them.

In its latest earnings update on Tuesday, GM said it expects to generate $3.1 billion from digital subscriptions this year.

‘We think there’s a growth opportunity there with very attractive margins,’ CEO Mary Barra told investors.

GM already has around 13 million subscribers paying for various in-car services, and that number is expected to climb rapidly as more vehicles come equipped with built-in technology.

(Excerpt) Read more at dailymail.com ...


TOPICS: Business/Economy; Conspiracy; Hobbies; Travel
KEYWORDS: automotive; clickbait; generalmotors; profit
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To: dennisw

I have concluded my next car will almost certainly be a late model
Car that I have rebuilt from the frame up.

The cost and nonsense on new cars isn’t worth it.


81 posted on 05/01/2026 6:00:46 AM PDT by HamiltonJay
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To: HamiltonJay

We will be like Cuba. The cars built in the 90’s and 00’s will be around for ever. I am in the process of overhauling my 01 Camry.


82 posted on 05/01/2026 6:03:51 AM PDT by central_va (I won't be reconstructed and I do not give a damn)
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To: quantim

It’s a Ford, not a Buick.

Last year when I went to buy mom a new car I learned that most Buicks are built in China. At least Fords are still built on this continent. Bought an Equinox. Not a bad vehicle, but it’s more an appliance than a car. No personality at all.


83 posted on 05/01/2026 6:07:44 AM PDT by Don W (When blacks riot, neighborhoods and cities burn. When whites riot, nations and continents burn)
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To: coloradan
Drivers very much can avoid these fees by never, ever, buying vehicles with necessary subscription-based features. The subscription services aren't necessary to operate the car.
84 posted on 05/01/2026 6:12:35 AM PDT by EVO X ( )
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To: dennisw

I swore off American cars a long time ago. My BIL was mad at me for bad mouthing American cars. So I asked him why can’t Ford and Chevy make A car that’s reliable like the Japanese? They could they just won’t because then you wouldn’t need to trade every 4-5 years.

American car manufacturers don’t make money on the vehicle, they make money on parts. Functional obsolescence is built in so parts start wearing out in 4 years and have to be replaced. Now your going to be repairing your car and paying monthly subscription fees. In addition the vehicle will be watching your every movement and maybe just decide not to keep running if you blink the wrong way.


85 posted on 05/01/2026 6:18:41 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: meyer; central_va

Full Self Driving. It is Tesla’s technology that enables the car to drive itself.

I have a Tesla Model 3. It drives me to the grocery store, finds a parking place all by itself.

Tesla is now manufacturing cars (taxis) that have no steering wheels, pedals, or mirrors.

I love it.


86 posted on 05/01/2026 6:21:24 AM PDT by MV=PY (The Magic Question: Who's paying for it?)
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To: dennisw

I have 2008 and 2023 cars, so I can make that comparison. I think engines are better in terms of horsepower and fuel efficiency.

The feature that I appreciate the most is the back-up camera. Now why don’t they put a camera in front so I know how close I am to curb?

Integrated GPS, through my phone and the car’s display can be elegant, though sometimes you have to fiddle to get it right. It’s not clearly better than an add-on Garmin. In fact, I think the Garmin recognized that a city might just be a waypoint instead of a stop.

We’ve gone from cruise control to adaptive cruise control. That means cruise control won’t drive your car into a slower car. Yes, it’s better, but I always knew how to depress the brake.

Pandora through the excellent sound system is nice but very optional.

Hands-off telephone calls are amazing. I use it a handful of times a year, mostly as a novelty feature.

I think the only way to learn these features is when driving. Looking up and down at the display and my phone, it’s a wonder I haven’t driven off the road or worse.

The use of the word “auto” is now ambiguous. What does “auto hold” mean for example.

I can go to my phone and check the tire-pressure and see if the doors are locked. Cool. Just don’t turn on the car engine by accident. Lost your car? If you have your phone on you (not in the car or at home), that little screen display map may help you to find your car.

My summary is that the improved engine and back-up camera are improvements of worth. There are many other technological improvements that you can probably do without.

In the past, the idea of self-driving cars had no appeal. I thought the idea was just bad and dangerous. However, it seems like the technology is inching forward. If you ever thought it might be nice to ride as a passenger, a safe self-driving feature might have some appeal.


87 posted on 05/01/2026 6:24:34 AM PDT by ChessExpert (Infidels of the world unite against the evil that is Islam.)
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To: MV=PY

How much does that add to the cost of the car? Does it force you to drive the speed limit?


88 posted on 05/01/2026 6:25:46 AM PDT by central_va (I won't be reconstructed and I do not give a damn)
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To: meyer; central_va

The attached will give you first hand view of FSD. There are actually several such FSD videos on You Tube.

It is actually quite amazing

https://www.youtube.com/watch?v=N81aykBdv-U


89 posted on 05/01/2026 6:26:01 AM PDT by bert ( (KE. NP. +12) Quid Quid Nominatur Fabricatur)
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To: bert

DOnt care. I drive 20 yo beaters with manual transmissions.


90 posted on 05/01/2026 6:28:30 AM PDT by central_va (I won't be reconstructed and I do not give a damn)
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To: bert

THe speed limits around here are ridiculously low. Does the self drive have to follow the speed limit?


91 posted on 05/01/2026 6:29:36 AM PDT by central_va (I won't be reconstructed and I do not give a damn)
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To: Highest Authority

I’m an automotive Luddite.


92 posted on 05/01/2026 6:30:52 AM PDT by central_va (I won't be reconstructed and I do not give a damn)
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To: Georgia Girl 2
American car manufacturers don’t make money on the vehicle, they make money on parts.

I don't think it makes much difference these days. An auto dealer will screw you with off warranty repairs. I had a pocket rocket rice burner that needed new brakes. The dealer wanted over $5K for the job. I don't drive on the autobahn so I settled for standard brakes that cost about $600. What I should have done was install after market performance brakes for about $2K.

93 posted on 05/01/2026 6:40:26 AM PDT by EVO X ( )
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To: srmanuel

I believe in the next 5-10 years maybe longer, the biggest feature of new cars will be Full Self Driving (FSD), it will make driving a car significantly safer than today.


Your grandkids will breathlessly tell their friends about how grandpa used to drive completely under his control.


94 posted on 05/01/2026 6:40:33 AM PDT by Not_Who_U_Think (`)
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To: srmanuel

The Griswolds were ahead of the curve....

https://www.youtube.com/watch?v=M73Gb3gDldY


95 posted on 05/01/2026 6:44:28 AM PDT by dfwgator ("I am Charlie Kirk!")
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To: dennisw

“Ford is now also charging monthly subscription fees for products or services that used to be free”

You used to be able to buy the complete car outright. Now they are only selling a portion of it. What is next? You only own the engine 5 years, then you have to buy a replacement current emission compliant one?


96 posted on 05/01/2026 6:45:19 AM PDT by alternatives?
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To: dennisw
when your A/C and heater will not work...

BMW tried an $18/month subscription for the heated seats. They had to back off on that one. They do charge for digital features.

Don't buy a used BMW.

97 posted on 05/01/2026 6:52:43 AM PDT by PAR35
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To: central_va
THe speed limits around here are ridiculously low. Does the self drive have to follow the speed limit?

According to a few web searches Tesla, has several didn't modes. It can be set to the speed limit, stay with traffic speed mode, and mad max mode..

98 posted on 05/01/2026 6:53:39 AM PDT by EVO X ( )
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To: dennisw

Or, perhaps, it was useful information (’feedback’) regarding just how far an automaker could go before buyers started pushing back. “Let’s just try it, and see what the reaction is. If they accept it, it’s another $XX Million a year for us. If they don’t we just drop it, and call it a mistake.” “Sounds good. Proceed.”


99 posted on 05/01/2026 6:56:24 AM PDT by drwoof
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To: ETCM
Most car manufacturers have given up on NAV systems and offer CARPLAY/Android Auto for free.

GM figured that out. It's dropping Apple and Google compatibility, phased out on various models over the next few years. Don't buy a new GM without reading the fine print.

100 posted on 05/01/2026 6:56:37 AM PDT by PAR35
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