Sweden’s Volvo announced a major change regarding how they plan to sell their cars in the near future, a concept that is currently completely unique to the company.
Volvo recently released the concept of a “subscription service,” which could change the concept of car ownership for good.
Volvo is discussing the release of a subscription-based service for their vehicles, which they believe will simplify car ownership, starting with their XC40 compact crossover. The program is designed make it easier for people to drive Volvo cars with minimal hassle. The program is launching first in Europe and will probably surface in the United States as of 2018.
In order to participate in the program, or subscribe to it, the person would be required to pay a flat monthly fee which would cover all automotive costs from insurance to financing for the car of their choice. Regardless of age or location, the price of the vehicle for consumers would remain the same.
The program is supposed to make it easier for people to truly enjoy their car and not worry about the efforts that come with car ownership. Volvo is, however, still offering cars as leases and full purchases as most companies do and will likely continue to do.
The CEO of Volvo, Håkan Samuelsson, does believe that the plan to launch this program will result in a short-term loss for the company but the company doesn’t seem too concerned about the potential struggle that could come with launching it.