After more than two years of protest from California dealers, Volvo Cars USA will replace a controversial subscription program in its biggest market.
The Swedish automaker plans to introduce an updated -- and more dealer-friendly -- version of the Care by Volvo program in California.
But still unclear is whether the changes in the newer version will satisfy the California dealer complaints.
The original Care by Volvo launched in 2017 as a two-year subscription service. The program bundles the use of a vehicle, insurance and maintenance costs into a monthly payment that ranges from $700 to $800 (499 euros to 899 euros in Germany), depending on the vehicle. After a year, subscribers can swap for a different vehicle.
The California Department of Motor Vehicles earlier this year deemed the subscription service to be in violation of several state franchise and consumer protection laws.
Last autumn, Volvo broadened the service to include more models and make some dealer-friendly updates. The reboot, referred to as Care By Volvo 2.0, is now available in about 15 states.
“Care by Volvo 2.0 was created in partnership with Volvo retailers and further expands consumer choice by allowing them to select a vehicle from retailer inventory,” Volvo spokesman Russell Datz said Tuesday.