Volvo aims to gain subscribers through simplification and an accessible price point
Volvo Cars will allow customers to subscribe to the 2019 XC40 compact crossover for a flat fee of $600 a month.
The Chinese-owned Swedish automaker released the details of Care by Volvo, a 24-month subscription service, to journalists Wednesday. The pricing, which includes insurance, maintenance and concierge services, comes in well below competitive offerings from Cadillac and Porsche.
"This is a national program, not a pilot or a test," Anders Gustafsson, CEO of Volvo Cars of North America, told Automotive News. "Everyone wants to simplify, and we handle and balance this all on our own books."
Volvo introduced the service at the XC40 launch in September, and Gustafsson has spent the last month educating U.S. retailers on the program.
The automaker said 2,000 people already have raised their hands to use the service, and customers can sign up to subscribe to the XC40 -- which hits dealership lots in March -- on Wednesday.
Cadillac introduced its Book by Cadillac service in January, which now gives customers in New York, Los Angeles and Dallas access to its stable of vehicles for $1,800 a month. Porsche Passport, introduced in October, offers Porsche vehicles to the Atlanta market for $2,000 or $3,000 a month.
The XC40's Momentum luxury trim, equipped with premium packages, will be available at the $600 monthly fee, and the R-Design sport trim, with premium packages, will be available for $700 a month. Subscribers will have the option to swap out vehicles 12 months into the 24-month service term.
"Volvo plans to charge $600 a month for XC40 subscription service" originally appeared in Automotive Newson 11/29/2017
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