Heinrich Nordhoff, the visionary who led Volkswagen and transformed the Beetle into a global icon, once said that at the core of his offering was “honest value.” But what does honest value really mean? And how does that principle apply today, particularly as Volkswagen experiments with its new ‘power boost’ subscription model, where ID.3 drivers can pay a monthly fee to unlock the car’s full engine power? Can such a model genuinely build trust with customers while also driving new revenue streams?
Something new
VW’s ‘power boost’ was met with mixed reactions because it didn’t feel like customers were paying for something new—they were paying to access functionality already sitting in their car. That distinction matters.
Subscriptions work when people see added value, whether that’s unlimited streaming, premium support, or exclusive access. But when the model looks like a tollgate blocking features they’ve technically already purchased, it feels less like innovation and more like being nickel-and-dimed. Psychologically, people are quick to reject business models that appear unfair. It’s about the principle: no one wants to feel tricked or held hostage by their own purchase. And in today’s environment, consumer frustration doesn’t stay private. Social media ensures that any perceived overreach is amplified into memes, headlines, and public backlash.
Subscriptions must feel like they’re giving customers more. The moment they look like they’re taking features away, trust collapses—and rebuilding it is far harder than getting it right the first time. That is where VW stands right now.
The opportunity is still out there
Subscription models are experiencing remarkable global growth, making them hard to ignore. The subscription industry has expanded by more than 435% over the last decade according to the Subscription Economy Index report, a remarkable rise that underlines how deeply the model has penetrated commerce. Juniper Research has recently also found that overall, the subscription economy is expected to hit US$1tr in value in just two years. From Netflix to Peloton to cloud software, people have embraced the idea of paying for access rather than ownership when it makes their lives easier or more enjoyable. Consumers love the flexibility that a good subscription model can achieve, but sometimes find that confusion or a lack of transparency reduces their chances of signing up.
For all automakers, this distinction is critical. The market is open to innovative subscription services, but only if they’re framed as genuine enhancements to the driving experience. Done right, subscriptions can move the relationship from transactional to long-term, and from cautious buyer to loyal advocate.
They can offer honest value.
Honest value
When subscriptions succeed, they don’t lock customers out, they unlock more value for them. As such, the best models enhance ownership rather than undermine it.
In the automotive space, that could mean shifting focus from paywalls around hardware to services that make driving more seamless, flexible, and personalised. Imagine a subscription that bundles routine maintenance, software updates, and roadside assistance into one predictable monthly fee. For many drivers, that’s simpler and less stressful than managing unexpected costs.
Or consider access-based models, where subscribers can switch between vehicle types (similar to the Porsche Passport scheme) like an SUV for a family trip, a compact for city driving, without the commitment of owning multiple cars. These are value propositions rooted in customer needs and not company convenience.
Tiered services also have potential, provided the value is transparent. A driver might reasonably pay for an advanced safety package, enhanced navigation, or concierge-style charging support, especially if they feel those upgrades improve the experience rather than hold back essentials. The common thread is alignment. When automakers design subscriptions around genuine benefits, customers are more likely to see them as a fair trade-off. And when they see real value, they stay longer, spend more, and, crucially, advocate for the brand.
Going forward and getting it right
If the automotive industry wants to limit the kind of backlash VW experienced, it needs to treat subscriptions less like a revenue lever and more like a long-term relationship. That starts with clear principles.
Transparency is non-negotiable. Customers should know exactly what they’re paying for and why. Hidden paywalls or fuzzy explanations only erode confidence. Flexibility is equally important. People value subscriptions they can pause, upgrade, or cancel without friction—rigid contracts feel outdated in an economy defined by choice. Most critically, subscriptions must be value-first. Charging extra for heated seats that are already installed feels punitive. By contrast, offering premium driver-assist features, entertainment bundles, or enhanced charging networks makes sense because customers see a clear benefit.
Finally, companies need to adopt a customer success mindset. Subscriptions shouldn’t be built to extract short-term gains but to nurture long-term loyalty. That means continually listening to feedback, evolving the offer, and ensuring customers feel supported.
Other industries have paved the way: Paramount+ excels at providing diverse entertainment, Alaska Airlines at creating a seamless and rewarding customer journey, and Cinemark at offering a continually evolving and premium experience. Automakers can do the same, but only if they resist the temptation to hold features hostage and instead use subscriptions to deliver more than customers expect.
About the author: Guy Meyers is Global Director of Customer Success at Recurly
