Volvo Adds Dealer Inventory to Subscription Program
Volvo dealers will soon be allowed to pull new vehicles off their lots and into the Care by Volvo sub service, a significant change that leads a list of reported revisions to the embattled program.

Some variants of the S60, V60, XC60, and XC90 have joined the XC40 in the Care by Volvo subscription program.
(Bobit) — Multiple media outlets report Volvo has made sweeping changes to its Care by Volvo subscription program, driven in part by complaints and legal challenges from dealers. The two-year service offers unlimited usage, insurance, concierge, and service and maintenance for a monthly charge that does not include gas, local taxes, or registration.
The changes are expected to take effect nationwide by the end of 2019, starting with 11 New Jersey dealerships in October. For the first time, dealers will be allowed to pull units out of inventory and into the program; formerly, every subscription vehicle was ordered from the factory by each new subscriber.
Read: 5 Ways Subscriptions Will Change Your Dealership
Volvo also added the S60 sedan, V60 Cross Country Adventure wagon, XC60 CUV, and XC90 SUV to the Care by Volvo selector, which was initially limited to the XC40 SUV, available in Momentum trim for $600 per month and TR R-Design trim for $700.
The monthly prices for those two models are now $700 and $750, respectively. The S60 Momentum is also available for $700 per month and the S60 R-Design, XC60 Momentum, and V60 Cross Country Adventure join the XC40 T5 R-Design in the $750 tier. The XC90 is available in Momentum trim for $800 per month.
Notably absent are Volvo’s flagship S90 sedan, the V90 Cross Country wagon, and any top-of-the-line Inscription editions.
Reports suggest Volvo will no longer rely solely on a group insurance policy issued by Liberty Mutual, which prevented some higher-risk drivers from joining the program.
Someone is making a mountain out of a molehill. If we have done something wrong, we will change it.
In December, the California New Car Dealers Association sued the factory, claiming unfair competition in violation of state franchise laws. The CNCDA suit also accuses Volvo of de facto payment packing stemming from the fact that every subscriber pays the same monthly price, whatever their risk to the insurer.
Volvo Car USA CEO Anders Gustafsson downplayed the lawsuit, which triggered an ongoing investigation by the California DMV. He accused the CNCDA of picking on Volvo, a relatively small player among North American brands, as a test case.
“Someone is making a mountain out of a molehill,” Gustafsson told Automotive News. “If we have done something wrong, we will change it. We don’t think we have done anything wrong, and it has never been our intention.”
Read: CNCDA: Care by Volvo Violates Payment Packing, Franchise Rules
Originally posted on Auto Dealer Today
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →