Volvo Subscription Service Limits Vehicle Choice, Lengthens Term to Keep Prices Down

Volvo Financial Services’ subscription model Care By Volvo undercuts other luxury OEM programs on the market with a subscription that’s less flexible but more affordable to a younger audience, said Peter Wexler, Volvo Cars USA’s director of mobility. Where similar programs such as Book By Cadillac and Porsche Passport start at $1,800 and $2,000 a […]

• William Hoffman
• February 2, 2018
• Carousel, Strategy

Bank of America Enters Car Subscription Space With Volvo

Bank of America is the finance provider for Volvo Cars’ new subscription service launched late last year, David Hollodick, the bank’s senior vice president of consumer vehicle lending, told Auto Finance News. All of Volvo Car Financial Services’ loan and lease originations end up on Bank of America’s balance sheet, Hollodick explained, including subscriptions to […]

• William Hoffman
• January 24, 2018
• All Posts, Carousel, Innovation & Mobility, Operations

Volvo Eyes Financial Services for Future Growth

Volvo Financial Services is still an “untapped potential” for Volvo Group and is key to deepening the relationship with customers, Chief Executive Martin Lundstedt said in the OEM’s third-quarter earnings report last Friday. “Volvo Financial Services delivered a good return on equity with low credit losses,” he said. “Financial services are key in our work to […]

• Emma Sandler
• October 23, 2017
• All Posts, Archives, Capital Markets, Earnings, Innovation & Mobility, Strategy, Technology

Volvo Sticks to Finance Strategy Amid EV Push

Volvo Cars became the first automaker to commit to producing a full line of electric or hybrid vehicles by 2019 last July, but this plan is not prompting a shift in the OEM’s financing strategy. “We see no difference in how we approach electrified cars from our finance company perspective,” a company spokesman told Auto […]

• William Hoffman
• October 4, 2017
• All Posts, Innovation & Mobility, Operations, Strategy

Volvo Offers New 24-Month Subscription Service

To coincide with Volvo Car’s new Volvo XC40, the luxury automaker is also launching its Care by Volvo subscription service. Care by Volvo is a national subscription service with a ready-negotiated monthly fee that allows someone to get a new car every 24 months. While it is unclear what connection Volvo Financial Services will have with […]

• Emma Sandler
• September 25, 2017
• Archives, Innovation & Mobility, Strategy

Carmaker Lynk & Co. to Offer On-Demand Subscription Model

In preparation for the Shanghai Motor Show this week, carmaker Lynk & Co. previewed its 03 Concept car, through which it plans to offer a pay-as-you-go subscription model. The company also declared its ambition to immediately enter the carsharing market. As a new car brand, Lynk & Co. is poised to show itself as the part of the next […]

• Emma Sandler
• April 19, 2017
• Innovation & Mobility, Technology

GM and Volvo Prepare for Shift to Autonomous Fleets

DALLAS — Due to shifts in consumer preference from personal ownership to a shared fleet, Deloitte Consulting LLP predicts commercial vehicle financing will make up 40% of the overall auto lending market sometime between 2022 and 2040, Angus Ross, digital transformation and innovation leader, told Auto Finance News. Executives at General Motors Co. and The Volvo […]

• William Hoffman
• April 4, 2017
• Innovation & Mobility, Technology

Volvo Considers International Expansion for Drive Me Program

Volvo Cars is now using TomTom’s high-definition mapping software to power Volvo’s autonomous vehicle Drive Me program — which begins in Gothenburg, Sweden, and may expand internationally after 2017, Mobility Buzz has learned.

• Emma Sandler
• March 17, 2017
• Innovation & Mobility, Strategy, Technology