Volvo isn't shy about experimenting with new business models — sometimes to the consternation of its retailers.
While Volvo's penchant to shake up the status quo might give it an edge in the market, the unpredictability it creates could dent dealership franchise values, industry watchers say.
In 2017, the Swedish automaker helped pioneer a subscription model that bundled the use of a vehicle with insurance and maintenance costs into a monthly payment. But it ran into a buzz saw of opposition from some dealers who argued that Volvo was violating state franchise laws meant to prohibit manufacturers from competing with their franchisees. Eventually, the Swedish automaker rolled out version 2.0 of the program that addressed many of the dealer concerns.