Latest news with #Ford Motor Co
Yahoo
17 minutes ago
- Automotive
- Yahoo
Automakers are going big on in-car subscriptions. Are customers buying it?
Consumers don't want to pay for it. Automakers are still pushing hard. In-car subscriptions have become a growing obsession for many automakers which see strong revenue potential from recurring customer payments. But it appears that initial attempts to paywall built-in hardware and software features, such as cameras, sensors or navigation perks, haven't been too successful, with few drivers willing to take on yet another monthly bill. That has brought automakers to their next challenge: convincing customers to subscribe. An S&P Global Mobility survey this month found the number of respondents who were willing to pay for connected services in their vehicle dropped to 68 per cent this year, compared with 86 per cent in 2024. "Subscription-based services (navigation, Wi-Fi, etc.) are increasingly being met with resistance from price-sensitive consumers who may not see the value in paying recurring fees for features they do not frequently use," the report said. Drivers now have a range of options to subscribe to: semi-autonomous driving, roadside assistance, in-vehicle apps, stolen vehicle assistance and access to Wi-Fi — all at different price tiers. However, steep subscription costs on top of sticker prices of new vehicles remain one of the biggest barriers for many consumers. To get past that, some automakers are offering temporary complementary access to connective services in hopes of gaining loyal customers. Ford Motor Co.'s semi-autonomous driving feature costs between $650 and $900 per year after a 90-day free trial, for example. General Motors Co.'s OnStar subscription can be as high as $39.99 a month after a free trial, according to its website. Automakers which are known for their affordable prices have also joined the race for subscription-based connected services. Kia Corp., for example, has a three-tier subscription offering for owners following a three-year free trial period, which offers services such as a charging station locator, digital key access via smartphone and roadside emergency services. The subscription model is in its evolution phase, said Stephanie Brinley, associate director of autointelligence at S&P Global Mobility. "We're trying to figure out what consumers are willing to pay for, how much they're willing to, (and) how they want it bundled," she said. Despite the initial resistance, automakers haven't given up yet. Instead, they're rolling out brand new technology and features in the hopes of enticing drivers to pay for subscriptions. "They're pivoting to that new tech," said Daniel Ross, senior manager of industry insights with Canadian Black Book. "It's more on what's new and what they've never had before." Ross said as newer technology comes out, there will be more opportunities for automakers to release new generations of cars with updated software. And that's one of the pitches for customers to subscribe, he added. "If you want that type of technology that's advanced, that's the newest age, that's something you can tell your friends about, this is the way you pay for it," Ross said. Brinley said automakers are building a road map to help scale this in-car technology and these features to make it more affordable for consumers in the long run — all while keeping personalization at its core. "Once you have the platform and the service developed, the margin is really high," Brinley said. "The fact that it's connected is not really the element that consumers get excited about," she said. "It's what does that connectivity do for you as an owner?" Some customers may find value in GM's OnStar safety and security package that alerts for help during a crash, while others may subscribe to Ford's self-driving feature for a month-long road trip. "The appeal of a feature is that it makes driving easier," she said. Brinley said automakers have started to talk about their revenue expectations from subscription-based services more concretely. That "means they're making progress," she said. On recent earnings calls, GM projected revenue from its hands-free feature, Super Cruise, will be more than $200 million in 2025 and is expected to more than double in 2026. Meanwhile, Ford said the number of its vehicles equipped with the hands-free driving feature, BlueCruise, have more than doubled in the last year to just under 700,000 units. "You can see our relationship with our customers no longer ends the point of sale or financing. We're starting to build lasting relationships and creating new avenues for reoccurring growth at Ford," CEO Jim Farley told analysts during its fourth-quarter earnings call. Ross said automakers are banking on the trickle-down effect of the connected services subscription. Often, features first introduced to high-end customers gradually filter their way down to mainstream customers, who are looking for affordable and budget-conscious options, he explained. Brinley said the subscription model is still in its early stages. As it progresses, so will consumer expectations. "If you have a car that has some of these features and then you go to buy the next car, you think that it just should be there," Brinley said. As consumers get more used to connectivity, their expectation of what comes with a vehicle and what they're going to pay will also evolve, she said. "There's probably going to be a lot of flexibility over time in how people choose to consume that," Brinley said. This report by The Canadian Press was first published July 25, 2025. Ritika Dubey, The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Automotive
- Bloomberg
Trump Revives Push for Japan to Boost Imports of US-Made Cars
US President Donald Trump's latest trade deal included a familiar, if not somewhat forgotten, demand for Japan to 'open their country' to cars imported from the US, potentially breathing new life into a contentious issue from the 80s and 90s. For decades, Ford Motor Co., General Motors Co. and others have sought to sell their cars in the island nation, but their numbers remain minuscule. Japan exported nearly 1.4 million cars to the US in 2024, but imported just about 16,000 US-built automobiles.
Yahoo
18-07-2025
- Business
- Yahoo
China Spy Agency Accuses Foreign Agents of Stealing Rare Earths
(Bloomberg) -- China's spy agency has accused overseas intelligence agencies of stealing controlled rare earth materials, reiterating its intent to curb smuggling even as Beijing agrees to review applications to export the vital industrial resource after trade talks with the US. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint Without naming any country, the Chinese Ministry of State Security accused foreign entities of orchestrating the trafficking of these items, which Beijing sees as a strategic asset and has used as a bargaining chip in tariff negotiations with Washington. 'In recent years, foreign espionage and intelligence agencies and their agents have attempted to collude with and incite unlawful people in the country to steal our rare earth-related items by means of mail delivery, posing a serious danger to our national security,' the ministry said in a WeChat post Friday. China leveraged its dominance in producing these metals and rare earth magnets in the trade war with the US, which relies on Chinese supply to make a wide range of products including electric vehicles. Ford Motor Co. had to cut output at one of its plants after Beijing tightened export controls, and the curbs have deepened tensions with the European Union, which similarly depends on exports from China. The security ministry claimed to have foiled an attempt by an unnamed country to illicitly acquire rare earths for stockpiling. This involved a contractor mislabeling parcels as 'not originally made in China' and misrepresenting product content and ingredients, according to the post. The MSS also detailed other alleged smuggling tactics, such as hiding rare earth powders in ceramic tile ingredients or disguising them in water bottles labeled as 'machinery parts' for export. The ministry urged citizens to report suspicious activities related to rare earth resources. China and the US last month confirmed a deal to suspend drastic tariffs after Beijing vowed to process export licenses and the US agreed to lift its own controls on technology including some advanced AI chips. Signs of easing tensions have raised the chance of a broader deal and a meeting between President Donald Trump and Chinese leader Xi Jinping this year. What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover Forget DOGE. Musk Is Suddenly All In on AI Why Access to Running Water Is a Luxury in Wealthy US Cities ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Automotive
- Yahoo
Ford recalls 850K vehicles for defective fuel pumps
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Ford Motor Co. has recalled 850K vehicles for low-pressure fuel delivery module (FDM) failures that have led to engine stalling while driving, according to the National Highway Traffic Safety Administration. The recalled models include certain 2021-2023 Bronco, Explorer, Lincoln Aviator, F-250, F-350, F-450 and F-550 Super Duty pickups; 2021-2022 F-150, Mustang and Lincoln Navigator; and 2022 Expedition SUV. The automaker currently does not have a remedy available to address the large recall, and is notifying owners of the safety risk in the interim. The letters are expected to be mailed on July 14. Ford will send a second letter once a fix is available. According to the recall report, the problem is due to internal contamination of the FDM's jet pump, which occurs when the fuel level is low. The report also cites 'reduced fuel pump internal clearances that result in an increase of internal friction and sensitivity to vapor lock.' Drivers of the recalled vehicles may experience poor engine performance, such as rough running or misfiring, as well as reduced power and a check engine light. FDM failures are more likely to occur when the fuel level is low, or in warm weather that increases the temperature of the fuel in the tank, according to the report. Ford's Critical Concern Review Group first opened an investigation into failing FDMs in September 2022 after receiving a high number of warranty claims and parts returns related to the fuel delivery system on certain model year 2021-2022 vehicles. According to the NHTSA, the FDMs of the vehicles with warranty claims contained a specific variant of the low-pressure FDM and the unit's jet pump. A teardown analysis by Ford investigators found that jet pump orifices on some returned parts were blocked by contamination. However, the source of contamination was not confirmed at the time. The automaker's CCRG also reviewed warranty data. The CCRG noted that the rate of fuel pump failures significantly declined after its 'supplier implemented several corrective actions from December 2021 through September 2022 to reduce contamination and production variation,' according to the report. The FDM was sourced from Auburn Hills, Michigan-based Tier 1 supplier Phinia and manufactured at a facility in Mexico. In July 2023, Ford's CCRG conducted a second review of warranty data to confirm that Phinia's corrective actions had successfully resolved the fuel pump contamination problem. Based on the available warranty data Ford had at the time, the company closed its investigation because field data showed a low rate of failures and that these failures 'could be progressive in nature,' the recall report states. However, on July 29, 2024, the NHTSA's Office of Defects Investigation opened a preliminary evaluation of fuel pump failures after receiving six consumer complaints alleging loss of engine power in 2021 Ford Bronco SUVs. Ford responded to the NHTSA's inquiry on Sept. 23, 2024. On April 3, 2025, Ford's CCRG opened another investigation to update warranty claims, field reports and the number of vehicles associated with the NHTSA's preliminary evaluation in July 2024. On May 22, the automaker's CCRG discovered that the number of warranty claims was higher in the summer months and warm-weather states. Ford also collected connected vehicle data remotely to better understand the cause of a higher number of fuel delivery problems in warmer temperatures. The automaker's CCRG also looked at fuel tank fill levels and diagnostic trouble codes to determine the root cause. In early June, Ford's CCRG reviewed the vehicle production dates for the vehicles involved in warranty claims to determine if the problem was related to changes in the manufacturing process. Investigators discovered that all of the warranty claims were for vehicles produced between July 2021 and July 2022. On June 9 and 10, Ford Product Development and Ford Supplier Technical Assistance reviewed the supplier's manufacturing process for the fuel pumps installed in the vehicles. The review found that Phinia had changed the jet pump process to 'accommodate an increase in build complexity' beginning in early June 2021, according to the report. Ford also identified that an unnamed Tier 3 supplier of the FCM's pumping chamber did not manufacture the part to Phinia's specifications, resulting in low clearances that led to an increase in internal friction and sensitivity to vapor lock. This discovery led to Ford's Field Review Committee approving the recall of the 850,000 vehicles on June 30. An estimated 10% of the recalled vehicles are suspected of having defective FDMs. As of June 6, Ford has received 1,860 warranty claims from September 2021 through May 2025 related to the fuel pumps. This includes 28 field reports and 57 customer service reports for vehicles produced from July 1, 2021, through July 31, 2022. But the company is not aware of any accidents or injuries. Although a remedy is currently under development by Ford, the recall report does not indicate when the automaker expects to have one available. The latest recall is Ford's 89th of 2025 and its second largest of the year, following a May recall of over 1 million vehicles for faulty backup camera software, according to NHTSA data. It's the highest number of recalls for a major automaker this year, and is more than the combined total number of recalls of General Motors, Stellantis, Toyota, Honda, Hyundai, Volkswagen and Tesla. But Ford says it's actively working to improve vehicle quality, especially as its vehicles become more complex with a higher number of functions powered by software. 'Ford has more than doubled its team of safety and technical experts in the past two years and significantly increased testing to failure on critical systems such as powertrains, steering and braking,' Ford spokesperson Mike Levine said in an emailed statement to Automotive Dive. Ford's 2025 recalls now exceed the total number from last year and potentially extend to over 5.2 million vehicles. Although the fuel pump recall is due to a mechanical issue, several of Ford's larger recalls this year were due to vehicle software errors, including May's recall of over one million vehicles. But finding and correcting software-related issues remains a high priority for the company, as well as for other automakers, as more vehicles are launched with software-powered systems that can be updated over the air. "The increase in recalls reflects our intensive strategy to quickly find and fix any hardware and software issues and go the extra mile to protect customers,' said Levine. Recommended Reading Ford recalls over 1M vehicles for defective backup camera software Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
