Mercedes to Test Subscription Service in U.S.

Daimler AG’s Mercedes-Benz unit plans by year-end to launch a pilot program in the U.S. for its car subscription service.

The carmaker is finalizing details of the plan, including where it will be offered, Britta Seeger, global head of sales for Mercedes-Benz, tells Automotive News.

Mercedes and Daimler Financial Services currently are testing a subscription service in Germany called Mercedes me Flexperience. The program allows customers access to a variety of new Mercedes models for a flat monthly rate that includes insurance, maintenance and some repairs.

In Germany, subscribers can choose among 12 vehicles from one of four groups (A-, C-, E- and S-Class models and their crossover and sporty variants). Users can upgrade as needed for an additional fee.

Customers can reserve new vehicles, based on availability, through a smartphone app. The base package has a 36,000-km (22,400-mile) annual mileage allowance.

Mercedes is working with existing dealers to help facilitate the program. Seeger says initial simulations indicate the service will be profitable, despite recent concerns raised by CEO Dieter Zetsche.

Cadillac, Lincoln, Porsche and Volvo also are testing vehicle subscription services now at monthly fees ranging between $600 and $2,000. BMW also is expected to launch its own service.