California New Car Dealer Association Claims Volvo's Subscription Plan Is Illegal

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.'”

USNA1999 - 12/6/2018 12:37:56 PM

+5 Boost

Dealers are NO longer needed just like real estate agents are no longer needed. Just look at TESLA and the way they do business! Getting rid of the middle guy if always better for the consumer. I hope VOLVO wins this one.

rockreid - 12/6/2018 1:06:26 PM

+5 Boost

This is a state by state basis. Even more “libertarian” business-minded states like Texas have been exposed at total frauds when it comes to the power of the Car Dealership lobby. The Texas Government is totally in bed with car dealerships picking and choosing winners in business matters. Texas and a few other states prohibit Tesla from selling cars directly and so deliveries must be arranged out of state. The direct sales and subscription services model for carscis still in its infancy so it will take time for each state to adapt.

Vette71 - 12/6/2018 3:26:43 PM

0 Boost

45 years ago the Harvard Business School had a case on the future of car retailing. The class conclusion was that since one buys/leases a car every few years the most efficient way was to have centrally located facilities to do test drives, and make the purchase, etc. Service was the key need to be distributed geographically. So buy the car direct for what amounts to dealer cost less any manufacturer promotions, which many already do. Sell your current one at wholesale which is current reality. Get service nearby as you use it. Pay per use and uber where not even on the radar.

ricks0me - 12/6/2018 6:29:08 PM

+2 Boost

California New Car Dealer Association Is Illegal

MDarringer - 12/6/2018 7:03:50 PM

-1 Boost

How so? Please give a coherent reason.

ricks0me - 12/6/2018 7:09:01 PM

+3 Boost

California New Car Dealer Association Claims Volvo's Subscription Plan Is Illegal
so why can't I say that the California New Car Dealer Association is Illegal
Actually, I can say it and I did twice. These people have too much time on their hands

MDarringer - 12/6/2018 9:18:33 PM

-1 Boost

The California New Car Dealer Association has a LEGAL BASIS they assert for their claim. Your claim is just pissy BS not based in anything.

ricks0me - 12/7/2018 8:36:05 AM

+3 Boost

MD: Just my opinion based on their LEGAL BASIS... and if you were a Volvo Dealer, what would your opinion be? .... Do you have employment with California New Car Dealer Association?

MDarringer - 12/7/2018 8:56:33 AM

-1 Boost

Your reasoning is 100% illogical because it is based on your armchair opinion and NOT an a legal opinion based in interpretation of law. I do not have employment with the California New Car Dealers Association, but I happen to be up to speed on the legal basis of this action. You aren't. Yet, you want to spew and spew and spew. Just because you have an opinion does not (1) make it valid or (2) worth listening to. It just means you have an opinion. Too bad you choose to be so ill-informed.

ricks0me - 12/7/2018 11:04:35 PM

+3 Boost

MD said >>> Just because you have an opinion does not (1) make it valid or (2) worth listening to. It just means you have an opinion.

Exactly ..... read my post 2 up.