Car By Volvo Subscription Service Is Dead for the "Foreseeable Future"

by Chris Teague

Published: September 13th, 2024

For a short time, it felt like car subscriptions might be the vehicle ownership model of the future, but they never took off. One of the more well-known services, Car by Volvo, debuted in 2017, but the automaker quickly ran into pushback from dealers. Despite some saying the program reeled in new buyers, Volvo is discontinuing the service for the “foreseeable future.”

Automotive News reported on the move, with Volvo spokesperson Russell Datz saying, “This allows for concentrated focus on our core customer offers and the coming introduction of new products, and an increase in operational efficiencies.” Datz did not detail the automaker’s subscriber numbers but said those already enrolled can finish the program under their agreed-to terms.

Despite being profitable, Volvo’s move to nix the program follows similar moves by other automakers. As Automotive News pointed out, Audi, Ford, and Mercedes-Benz canceled comparable services, some still in the pilot stage. Volvo overcame the initial friction to build a somewhat successful subscription service, but it was ultimately viewed as a pet project of former Volvo CEO Haken Samuelsson, who departed the company in 2022.

It's not all that surprising to hear this news, as Volvo has other problems on its hands. The EX30 SUV has been delayed until 2025 at the latest, and the larger EX90 has been pushed back due to software issues. Additionally, Volvo’s Chinese parent company has made it difficult for the company to sell imported EVs because of tightening U.S. tariffs.

[Images: Volvo]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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2 of 6 comments

FreedMike on Sep 14, 2024
I remember checking this out for curiosity's sake, and I can tell you what killed it - it was ridiculously overpriced. And then there's this little blurb: "Additionally, Volvo’s Chinese parent company has made it difficult for the company to sell imported EVs because of tightening U.S. tariffs." What the story doesn't mention is that Polestar now has a plant in the U.S.

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Nrd515 on Sep 15, 2024
As clueless as the car companies seem to be at this point in time, even they know people hate even the idea of subscription service. It's a total, "Nope, not even going to consider this car, you can bite me!" thing with me, and apparently a lot of other people.

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