You might have noticed that car companies are starting to emulate Silicon Valley more than Detroit lately. That's no surprise—software is becoming paramount in automotive engineering. But it's also seeping into the business decisions that the big wigs on the top floors are buying into, and it all boils down to the Benjamins.
See, manufacturers are doubling down on the idea that recurring revenue spells out value after the car leaves the factory. Rather than relying on a one-time sale of a car or parts to repair them later down the road, brands have figured out that they can instead continue to rake in money once a car leaves the lot by offering up subscriptions. Now driver-assistance tech is becoming the latest way to push monthly payments onto consumers.
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