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Volvo has discontinued its Care by Volvo subscription service as of August, as reported by Automotive News (subscription required).
Launched in the U.S. in 2017, the program provided customers with a fixed monthly fee that included not just the vehicle but also maintenance and insurance.
The company will now shift its focus back to traditional sales and leasing methods.
A spokesperson for Volvo informed Automotive News that existing subscribers can continue their service until the end of their contract. Afterward, they will be eligible for a $1,000 credit towards purchasing a new Volvo or $500 off a lease.
Volvo has not disclosed what percentage of its customer base utilized the subscription service, but a dealer from New Jersey with two locations indicated to Automotive News that roughly 10% of customers participated in the program.
The subscription model became profitable in the U.S. by 2020 and also attracted new clientele to the brand, particularly among younger consumers, according to Volvo.
However, the program did create some confusion regarding dealer franchise regulations, as it closely resembled a leasing agreement. To address this, in 2019, Volvo made adjustments to the program to distinguish it from leases, allowing customers to switch vehicles or cancel their subscription without any penalties after five months.
While several other manufacturers tested subscription programs, only Volvo implemented its offering on a full-time basis.
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