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Volvo vows to charge subscriptions only for major updates

Volvo Cars Chief Operating Officer Bjorn Annwall   BMW veered into a public-relations mess this year when it started charging car owners monthly subscription fees to warm their behinds. Volvo Car won’t be making similar moves. “If you are to charge for software updates, it must be a step change in consumer benefit,” VolvoÂ’s Chief Operating Officer Bjorn Annwall said in an interview this month. “We will not ask people who have bought a car for 1 million kronor ($96,500) to pay another 10 kronor to get extra heat in the seat.” While BMW will no doubt have other manufacturers follow in its footsteps — Mercedes-Benz recently started asking buyers of its EQ electric vehicles to fork over $1,200 a year to unlock quicker acceleration, for example — the auto world has started to second-guess just how much money there is to be made from the rise of software within their hardware-intensive business. In a 91-page deep dive into the topic last month, analysts at UBS pegged the total addressable market at $700 billion by 2030. ThatÂ’s no pittance, but pales in comparison to the $2 trillion opportunity they anticipated previously. Annwall sees Volvo generating little additional revenue from software until mid-decade. Only if major upgrades become available — a self-driving mode, for example — would Volvo charge extra. “You donÂ’t have to hold the steering wheel — now thatÂ’s a step change in user benefit.” Annwall was speaking at the opening of VolvoÂ’s new tech hub in Stockholm, where the manufacturer builds software for selling and marketing cars online. The company, which last month unveiled a battery-powered sport utility vehicle to succeed its gasoline-era flagship, intends to cease making combustion cars by the end of the decade. ItÂ’s going to be an uphill push: EVs made up just under a fifth of the companyÂ’s shipments last month. Bloomberg spoke with Annwall about VolvoÂ’s tech efforts, the software issues that have plagued some of its competitors and the ongoing supply-chain issues holding back the industry. Here are highlights from the conversation, which have been edited for length and clarity: Large automakers including Volkswagen have had problems with their car software. Have you experienced similar obstacles? I wonÂ’t hide the fact that we have had some problems with our software in the car as well. But weÂ’ve been good at correcting them fairly quickly.

Volvo recalls handful of vehicles for risk of false alarm

Volvo’s latest tech updates have made its vehicles easier to live with and safer, but as with any significant change, there are bumps in the road. The automaker recently recalled a handful of 2023 model-year vehicles for an issue that could cause false warning lights in the gauge cluster. The recall covers the Volvo S60, V60, XC60, XC90, and C40, with build dates that range from late 2022 to March 2023, depending on the model. An issue with the Telematics Connectivity Antenna Module (TCAM) could falsely trigger an error related to communications between the infotainment head unit. The driver receives an “e-call service required” message in the gauge cluster, but the system will continue to operate normally with the error. Though thereÂ’s no real problem or immediate danger when this happens, the false message can obscure a legitimate problem. The e-call feature is part of VolvoÂ’s onboard safety equipment that communicates information after a crash or other incident, so itÂ’s important to know when itÂ’s functioning correctly. There has been only one report of this problem in the U.S., and the recall only involves 329 vehicles. Thankfully for the affected owners, the fix is a simple software update to change the TCAMÂ’s logic. The update is ready to go, and dealers have been notified. The NHTSA said owners would be notified by mail in mid-May, but if your Volvo is acting up, itÂ’s a good idea to call the dealer when you notice. This is the third recall for several 2023 Volvos since last October. All three have involved software issues. The first involves a loss of drive power due to an error in the software that prevented the combustion engine from starting when the vehiclesÂ’ plug-in hybrid batteries were depleted. The second happened in January and related to diagnostic errors in the braking control module that could cause the electronic stability control, antilock brakes, and traction control to malfunction. Related Video This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Recalls Volvo Ownership Safety

Ex-Volvo boss Stefan Jacoby to head GM's international operations

He was too talented not to surface somewhere, we just didn't know where and when. Nine months ago, Stefan Jacoby stepped down from his post as Volvo CEO, a move that caught many off guard. At the time, the separation was called "amicable," but word is that the strong-willed executive clashed with owners Geely and the automaker's board.
Jacoby will have a new set of challenges on his hands, as he has just been named Executive Vice President Consolidated International Operations for General Motors. That means the Hannover-born Jacoby will head up the company's operations in Asia, Africa, Europe and the Middle East, where he will be responsible for over 100 countries and territories. Jacoby succeeds Tim Lee, who has been named chairman of GM China. Lee will also retain his post as Executive Vice President Global Manufacturing.
Jacoby's dealings with Geely should help him in his Asian market duties, but he also counts time as the head of Volkswagen of China on his resume, so he's very well-versed in the market's peculiarities.