If you don’t want to pay in-car subscriptions every month, no problem: pay it all in advance. This is the line General Motors After news broke today, it’s making a three-year, $1,500 subscription to OnStar connected services a mandatory “option” on new Buick, GMC and Cadillac Escalade models. A subscription that lets you use your phone as a key fob, data-enabled navigation, audio streaming and Amazon’s Alexa virtual assistant are still optional on other GM vehicles, with the Premium package costing $49.99 a month. But don’t be surprised if this new setup spreads across the automaker’s full portfolio.
Although today’s attention-grabbing a Detroit Free Press In the report, news of Onstar becoming a mandatory subscription was first reported on July 5 GM Authority. A $1,500 charge for OnStar will effectively raise the base prices of these cars, though the exact increase varies from model to model. All Buicks will see a $1,500 price increase. Higher trim GMCs will see an increase of up to $905 Hummer EV no MSRP boost. The base model GMC pickups, Sierra and Canyon, were hit the hardest with a $1,675 increase. By far the most common price increase is $1,500, which goes to the Cadillac Escalade. Automotive News reports
Conversational tone GM Authority, According to a spokesman, the way customers pay for the service “will be strengthened [their] Vehicle ownership experience.” They stated, “By including this plan as standard equipment in the vehicle, it provides greater customer value and a more seamless flying experience.” The automaker confirmed. AN Customers who do not activate OnStar and do not wish to use the services will not receive the discount.
Implementing this change is a pretty classic GM forced mistake. Dealer prices aside, new car prices are somewhat insulated from rapid inflation because they’re typically set by annual increases each time a new model year comes out. We are now entering the release season of the 2023 lineup and are already seeing some serious price increases due to increased supply chain costs. GM could raise all those MSRPs, cap it for inflation, and offer a free three-year OnStar subscription to soften the blow.
Instead, it jumps into a fray where consumers are outraged about subscription options for new cars with this forced-choice nonsense. It’s not as bad as trying to pay for things like heated seats, As BMW recently found outnor is it so convoluted As Toyota plans to start the key fob remotely becomes a subscription service. But the idea of buyers being forced to pay for something they didn’t want, which was previously optional, will certainly raise concerns. It all feels a bit Orwellian when GM still insists on calling the “offered” an “option”.
We reached out to GM to ask if this mandatory subscription model will apply to the next Chevrolet and other Cadillacs, and a spokesperson said the plan is “currently offered on new Buick, GMC and Cadillac Escalades.”
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