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Posts Tagged ‘Care by Volvo’

Volvo’s Care Subscription Program Key to Growth Plans

VCNA chief acknowledges reliability concerns but says problems, warranty costs, are tumbling.

by Paul A. Eisenstein on Nov.08, 2018

Volvo Cars North America CEO Anders Gustafsson with images of some of the first workers at the automaker's new Charleston plant.

U.S. new vehicle sales are on course to post their second consecutive decline as 2018 draws to a close, but you’d have a hard time telling that if you were just looking at Volvo’s numbers.

The Swedish automaker has posted a 27% jump in demand through the end of October and, with more products ready to land in U.S. showrooms, Volvo Cars USA CEO Anders Gustafsson said Thursday he is optimistic the company can keep its momentum growing.

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Several factors could give meaning to his forecast, including not just the launch of the new Volvo S60, but the start of production at the Chinese-owned automaker’s first U.S. assembly plant in Charleston, South Carolina. Then there’s Care by Volvo, the subscription program the carmaker launched late last year.

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Volvo Hopes to Electrify Customers – and Investors

All-electric models now expected to generate half its sales by mid-2020s, with 1/3 self-driving.

by Paul A. Eisenstein on Jun.08, 2018

The Volvo 40.2 Concept hints at what's coming with the marque's first all-electric vehicle.

Volvo took a lead in the push into electrification last year, announcing it would use some of battery-based drive system on all future products, whether mild, conventional or plug-in hybrids, or pure battery-electric. And, last January, it gave us a hint of what that first BEV would be with the debut of its 40.2 concept.

The production version will follow in 2019 and, if Volvo’s latest forecast is any indication, so will plenty of other all-electric models, as the Swedish automaker now says it wants them to generate half of its sales by mid-decade.

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The mid-term plan Volvo is laying out is nothing if not ambitious. It also predicts that half of the Chinese-owned automaker’s sales will come from self-driving vehicles, and that half of its volume will come through its Care by Volvo subscription service, rather than conventional sales and leasing. Oh, and add a goal of boosting volume – and profitability – to match other premium manufacturers.

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Automakers Exploring Alternatives to Conventional Car-Buying Process

Ford paints one option with Canvas subscription service.

by Paul A. Eisenstein on Feb.09, 2018

Ford's Canvas subscription service delivers a Mustang to a customer in California.

More than 17 million Americans drove off dealer lots with new vehicles last year, and the vast majority of them purchased their new cars, trucks and crossovers the same way motorists have for the past century.

There are alternatives, like leasing, but automakers are exploring even more radical options, some borrowed from the emerging world of online retailing. Ford, for one, said this week it is looking for ways to grow the subscription service, Canvas, that it launched a year ago. That subscription-based service might best be described as a hybrid blend of car buying and car rental, letting a motorist get a vehicle for as long as they want but then return it with just seven days’ notice.

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“As car ownership evolves, we see Canvas as part of our suite of products that address changing customer needs in mobility,” said Ford Credit Executive Vice President of Marketing David McClelland. “Canvas is building subscription products that are relevant to consumers today, and it’s building technology for the future, including billing and fleet management, with a nimble approach to product development.”

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Volvo Subscription Plan for XC40 to Start at $600 a Month

Program will cover everything from car to insurance for set rate.

by Paul A. Eisenstein on Dec.01, 2017

Volvo CEO Anders Gustafsson and Heith Rogers talk as Rogers signed up for an XC40 through the Care by Volvo plan at the L.A. Auto Show.

This story contains updated information.

Volvo buyers who want to skip the hassle of negotiating a deal on the 2018 XC40 will be able to sign up for the new Care by Volvo subscription plan and, for a flat $600 a month, get not only the compact SUV but also their insurance, title and other fees, as well as repairs and maintenance thrown in, as well.

Volvo is betting that, in an era when consumers are shifting more and more to monthly subscription models, some car buyers will also look forward to having a set price covering all their transportation expenses but for gasoline.

Auto Show News!

The automaker had announced the Care program several months ago but only revealed pricing this week during a news conference at the Los Angeles Auto Show. It demonstrated the ease of the process by having buyer Heith Rogers sign up for a new Volvo XC40 subscription on stage. It took the Los Angeles resident less than 10 minutes to lock things down. (more…)

Are You Ready to “Subscribe,” Rather Than Buy or Lease?

Automakers search for easier, friendlier ways to sell their products.

by Paul A. Eisenstein on Oct.30, 2017

The third-generation 2018 Porsche Cayenne is part of the German maker's new "subscription" service.

Like the new 2018 Hyundai Sonata sedan but not sure it’s the right model for you? No problem. The automaker just launched the Shopper Assurance program which, among other things, offers potential buyers a three-day, money-back guarantee.

Maybe your taste – and budget – runs more towards Porsche, but you can’t decide between the classic 911 sports car, the Panamera sedan or the big Cayenne SUV. No problem there, either, at least if you’re living in Atlanta, where the German automaker has set up the pilot Porsche Passport program. For as much as $3,000 a month, customers in Atlanta soon will be able to switch between as many as 22 different Porsche models pretty much whenever they want simply by using a smartphone app.

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At a time when the Internet has changed the way Americans shop for most everything else, automakers are looking for ways to revise the classic car buying process, an experience often likened to getting a root canal – without the anesthetic. They’re exploring ways to cut out the haggling, speed up the sales process and make it simpler and friendlier. Some are even letting motorists shop at home or office, rather than having to trudge to the dealer showroom. (more…)