Photo: Volvo
If you want to drive the XC40, you could either spend $33,700 on the Momentum with front-wheel drive and the 187-horsepower engine or sign up for Care by Volvo. The problem with the subscription service that costs from $650 to $850 per month for two years is that there’s a waiting list for the XC40, stretching well into 2019.
Volvo Cars North America chief executive officer Anders Gustafsson isn’t exactly surprised by this result, but he doesn’t go into the tension that Care by Volvo has produced with dealers. More to the point, the subscription fee goes to Volvo instead of the dealership, striking an imbalance between two entities that can't survive without each other.
Speaking to Automotive News, the head honcho said the dealers urge Volvo to let them “be involved, because we can help.” How and to what extent, we would certainly like to find out. Looking at the matter from an optimistic standpoint, there’s no denying that Volvo has a winner on its hands.
Four months after announcing the program in the United States, the Swedish automaker from Gothenburg had sold all subscriptions expected for the first 12 months of the program. Demand is through the roof and keeps on climbing, and the XC40 is the most popular model tapped through Care by Volvo.
Book by Cadillac, on the other hand, went bust after a year since it rolled out to authorized dealerships. One of the reasons General Motors couldn’t make it stick is the monthly fee, which is preposterous at $1,800 after a payment of $9,845 at signing.
But in truth, the reason Cadillac failed where Volvo succeeded is that the American automaker hasn’t got the cars to justify the price of the subscription service. Volvo, on the other hand, designed everything from the XC40 to the XC90 to make the customer feel special.
Volvo also keeps the customer’s interest alight by allowing to get a different car after one year of subscription. The all-new S60 seems like an interesting option, let alone the Polestar One. Those who would rather buy the super-GT outright can do so if they’re prepared to pony up $155,000.
Speaking to Automotive News, the head honcho said the dealers urge Volvo to let them “be involved, because we can help.” How and to what extent, we would certainly like to find out. Looking at the matter from an optimistic standpoint, there’s no denying that Volvo has a winner on its hands.
Four months after announcing the program in the United States, the Swedish automaker from Gothenburg had sold all subscriptions expected for the first 12 months of the program. Demand is through the roof and keeps on climbing, and the XC40 is the most popular model tapped through Care by Volvo.
Book by Cadillac, on the other hand, went bust after a year since it rolled out to authorized dealerships. One of the reasons General Motors couldn’t make it stick is the monthly fee, which is preposterous at $1,800 after a payment of $9,845 at signing.
But in truth, the reason Cadillac failed where Volvo succeeded is that the American automaker hasn’t got the cars to justify the price of the subscription service. Volvo, on the other hand, designed everything from the XC40 to the XC90 to make the customer feel special.
Volvo also keeps the customer’s interest alight by allowing to get a different car after one year of subscription. The all-new S60 seems like an interesting option, let alone the Polestar One. Those who would rather buy the super-GT outright can do so if they’re prepared to pony up $155,000.
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