Volvo Cars is reviving a vehicle subscription service in California, less than three years after the program was booted from the key market for violating state franchise laws.
The latest program, slated to launch next month, ends a four-year battle between Volvo and its California dealers to introduce the service that now bundles vehicle use, road hazard coverage, maintenance and other services into a monthly payment.
Care by Volvo offers a two-year term, but subscribers can change vehicles or cancel the subscription without penalty after five months.
"Giving customers the freedom to move in a personal, sustainable and safe way is our mission," Volvo Car USA outgoing CEO Anders Gustafsson told Automotive News. "Working with our retailer partners to offer the flexibility to do so is one way we are fulfilling our mission."
Launched in 2017, Care by Volvo was a key initiative under former CEO Hakan Samuelsson. Volvo views the subscription program as another channel for dealers to move inventory. Like traditional new-vehicle leases and sales, dealers receive a margin on subscription volume.