BMW is shutting down its vehicle subscription pilot at the end of the month.
The Access by BMW subscription pilot launched in April 2018 and never expanded beyond its initial Nashville market. It was targeted at affluent customers willing to pay high monthly fees for two tiers of service starting at $2,000.
“Our intent with the pilot was to learn about the viability of the subscription model and gauge customer interest,” a BMW spokesman told Automotive News Thursday. “We are in the process of developing the next iteration of the program,” he said, declining to elaborate on details.
Rival Mercedes-Benz ended a similar pilot last summer after seeing lackluster demand for the mobility model.
Three months after launch, BMW added a new entry level tier to the subscription program that lowered the starting price to $1,099 a month.
“The subscription model is something we have to learn as we go along,” BMW of North America CEO Bernhard Kuhnt told Automotive News in 2019. “You have to have the right network, you have to have the right product spread.”
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.