LAS VEGAS — Ford Motor Co. may be working on a car subscription service similar to the one General Motors rolled out for Cadillac earlier this year, according to Sandy Schwartz, president of Cox Automotive, speaking at the Conference of Automotive Remarketing last week.
A Ford spokesman declined to comment and a spokeswoman with Ford Motor Credit Co. told Auto Finance News and Mobility Buzz she had no knowledge of such a program.
“You can buy a car, you can lease a car, you can even subscribe to a car like [with] Cadillac Book, and we know Ford is working on something,” Schwartz said.
There are no details about the program beyond its similarity to GM’s $1,500-per-month Book By Cadillac program and Cox Enterprises’ new Clutch program, which enable consumers to drive a vehicle without restrictions and then swap it out at anytime.
While Book By Cadillac is exclusively vehicles made under GM’s brand, Clutch offers a multi-brand service, and the first vehicle supplier is Flow Automotive, which operates in North Carolina and Virginia, Schwartz said.
Clutch offers two plans: one for $1,400 per month with luxury vehicles, and one for $950 per month with access to lower cost vehicles. Both Clutch plans include a one-time entry fee of $250.
There is already some initial data from Clutch suggesting that consumers, on average, change out their car for a new model 2.6 times a month, which will require 1.2 cars per person to cover demand, Schwartz said. “Whether [subscriptions] make it or not, we don’t know,” he said. “But it will raise a lot of questions about whether people want to own a car, lease a car, or subscribe to a few cars.”Like This Post