The California New Car Dealers Association is requesting that Volvo immediately end its Care by Volvo subscription service within the state. According to the group, the automaker is in violation of California’s franchise and consumer protection laws.
It’s been a long time coming, as Care by Volvo is clearly designed to minimize dealer interactions. Anders Gustafsson, CEO of Volvo Cars of North America, even said the program claimed as much as 15 percent of the XC40 crossovers intended for dealerships this year.
“It’s really the same concerns from everybody, and it’s just that they don’t feel secure,” Gustafsson of said dealers last month. “They’re afraid we’re going to take something away from them … I would say the biggest question mark around subscriptions is that consumers need to decide that. Our retailers are asking, ‘Please let us be involved, because we can help.'”
It looks like they’re tired of begging.
Tesla factory owned store in Newport Beach, California
In the continuing battle between Tesla, which wants to sell cars directly to consumers, and car dealers, who are using state laws to keep the EV startup from opening factory outlets, the California New Car Dealers Association has asked that state’s DMV to “investigate and remedy several egregious violations and advertising and consumer protection laws” by Tesla.