Volvo Ends Care by Volvo Subscription Service
Introduction
Volvo has recently announced the discontinuation of its subscription service, Care by Volvo, in both the United States and Europe. The service, which offered flexible vehicle options with no long-term commitments, quietly ended on August 1 in the United States. This move comes as other automakers have also terminated their subscription programs in recent years.
The Decline of Car Subscriptions
Car subscriptions were once hailed as the future of car ownership, providing customers with the ability to easily switch vehicles based on their needs. However, several programs, including GM’s ‘Book by Cadillac’ and Mercedes-Benz Collection, have been discontinued in the past. Now, Volvo’s Care by Volvo joins the list of defunct subscription services.
Reasons for Discontinuation
Volvo has not provided specific reasons for ending their subscription service. However, Russell Datz, Volvo Car USA National Media Relations Manager, stated that the decision allows the company to focus on core customer offers, introduce new products, and increase operational efficiencies. While subscriptions are currently paused, Volvo has not ruled out the possibility of a future return.
Benefits of Care by Volvo
Although the program has been discontinued, it’s worth noting the benefits that Care by Volvo offered. Subscribers enjoyed flexibility, a lack of long-term commitment, a monthly mileage allowance, insurance coverage, and maintenance services.
Impact on Dealerships
While some subscription programs struggled with low usage, Care by Volvo reportedly proved profitable in the United States. Dealerships also benefited from the program, with one dealer stating that subscriptions accounted for 10% of their business and served as an effective way to introduce customers to the Volvo brand.
Conclusion
With the discontinuation of Care by Volvo, the car subscription trend faces another setback. While the reasons for ending the service remain undisclosed, Volvo’s decision allows them to focus on their core offerings and future product introductions. Whether car subscriptions will make a comeback in the future remains uncertain.
