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Mercedes Makes a Bold Move

The German premium vehicle manufacturer has found a creative way to increase its revenue.
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The price of electric vehicles is often one of the most common points of contemplation when consumers consider buying a green car. 

It is one of the last obstacles that often prevent them from taking the plunge when they compare the prices with those of gasoline cars. 

The difference in price between less polluting cars and those with substantial CO2 emissions is significant, even if the defenders of green vehicles tend to make the argument that, over their lifespan, costs tend to rebalance in favor of green vehicles. 

But at the time of the vehicle purchase, the gasoline-powered car often prevails. This situation is more pronounced during the times of economic slowdown, as is currently the case. Consumers prefer to save as much as possible and limit purchases deemed non-essential. In the case of cars, beside the fact that the price becomes a very important factor, consumers also tend to limit the addition of paid features.

It is in this context that Mercedes-Benz has just added a new optionality for buyers of its Mercedes-EQ electric models -- the Mercedes-EQ-EQE and Mercedes-EQ-EQS. They will have to pay an annual subscription for extra speed. This subscription costs $1,200 before tax. Basically, customers wanting a bit more speed, are going to have to pay extra for it.

'More Powerful'

The feature is called "Acceleration Increase," according to Mercedes-Benz USA, the American subsidiary of the German car manufacturer. It will be "coming soon," the company said. 

"Accelerate more powerfully: increase the torque and maximum output of your Mercedes-EQ," the firm described it, adding that it will boost the car's performance in several ways.

"The feeling of driving your Mercedes-EQ is a new experience every day – particularly its powerful, immediate acceleration," the firm said. "Acceleration Increase boosts this performance even further: electronically increasing the motor's output also increases the torque significantly, giving you a faster 0-to-60 mph time."

In addition, "fine tuning of the electric motors increases the maximum motor output (kW) of your Mercedes-EQ by 20 to 24%, depending on the original output from factory. The torque is also increased, enabling your vehicle to accelerate noticeably faster and more powerfully," Mercedes-Benz claims.

"This shortens the time it takes to accelerate from 0 to 60 mph by around 0.8 to 0.9 seconds."

It's surprising to see Mercedes charging for a feature that isn't an add-on, as the vehicle is already capable of providing the extra speed. The decision resembles a similar move by rival and compatriot BMW last July.

In the Footsteps of BMW

BMW had decided to offer vehicle owners a service to heat their seats to warm up their derrières -- at $18 a month, or $180 a year. Customers could also subscribe for three years for around $300 or purchase a lifetime option for almost $415.

The service was offered in many countries such as France, Germany, the U.K. and South Africa. For the price, the German company promised to deliver a software update that would heat the seats. It was a service on top of everything these customers were already paying for.

The new service created a public relations headache for BMW at the time, with social media blasting the brand, as the strategy was similar to that of low-cost airlines which charge travelers for just about every additional service, ranging from checked-in luggage to seat choice. 

BMW’s and Mercedes-Benz's moves suggest that automakers try to make more profitable use of over-the-air software updates. This strategy, initiated by Tesla, pushes new features and enhancements over Wi-Fi.

With this tactic, automakers, who are already charging consumers extra money for advanced hardware features, will now be able to do the same for software-driven features as well, fattening profit margins.