29 Jun 20

Mercedes ends subscription service in US

Mercedes-Benz has said it will end its two-year vehicle subscription pilot in the United States this summer, citing lack of consumer interest.

Sales chief Adam Chamberlain told Automotive News the subscription service, which was available in Nashville, Philadelphia and Atlanta, will end this summer.

Mercedes isn’t the first carmaker to give up on its subscription service. Earlier, General Motors ended Book by Cadillac, stating the service would return in an overhauled formula.

Ford also discontinued its subscription service in the United States.

Pricing is often cited as the reason why consumers aren’t lining up to get on board of these subscription services. In the case of Mercedes-Benz, subscriptions were available in tiers between $1,095 and $3,595 a month.

These fees give users access to about 30 model variants, including roadside assistance and maintenance.

However, changing vehicles frequently grows old fast, said Mr Chamberlain to Automotive News. “After a certain period of time, that sort of gets old and they want to leave their car with their stuff in it.”

Faced with insufficient vehicle turnover, providers need to offer large volumes of each model variant, making the programme too expensive to turn a profit.

Image source: Mercedes-Benz USA

Authored by: Benjamin Uyttebroeck