By on March 28, 2019

Ultra-rare automobiles have a tendency to be scooped up by speculators hoping to turn a buck. Manufacturers hate this, as they see none of that sweet, secondhand scratch — plus, the vehicles frequently end up as garage queens tucked away from the public eye. While a bit of a grimy move, it’s easy to understand why someone might be willing to fall from a manufacturer’s good graces so they can flip an already expensive automobile for several times what they paid.

Automakers have come up with interesting ways to circumvent the problem, often establishing hard limits on when a customer can resell a particularly in-demand model, but it never manages to stop it from happening entirely. However, Porsche CEO Oliver Blume thinks he has a novel solution — one that we’re a bit torn on.  (Read More…)

By on December 5, 2018

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.  (Read More…)

By on November 12, 2018

Care by Volvo subscription service

Despite the push from an eager industry, car subscription services haven’t proven an overwhelming success. The general consensus is that premium services, while intriguing concepts, are too expensive and complicated to maintain at scale. Book by Cadillac, which was recently suspended by General Motors, is emblematic of the public’s lackadaisical response to a system mired in logistical issues.

However, the concept itself isn’t dead just because one manufacturer decided it wasn’t worthwhile. Other premium nameplates still have their own services — Toyota plans to launch its own subscription-based pilot program in Japan soon, while Volvo Cars has enjoyed some success with Care by Volvo. Still, framing it as a trouble-free victory for the brand would be a mistake. Volvo’s subscription service has been as much a learning opportunity as it has been an overwhelming triumph.  (Read More…)

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