Volvo’s unique subscription program raised the ire of the California New Car Dealers Association.
The group argued that by providing subscriptions straight by means of its web site, Volvo violated state legislation meant to ban producers from competing with franchisees.
In January 2019, the affiliation filed a petition with the state’s New Motor Vehicle Board arguing the legality of Care By Volvo. In August, the board directed the state DMV to analyze.
“Volvo is deceiving consumers by saying this is a subscription program; it’s actually a lease,” Maas instructed Automotive News in 2020.
The affiliation, on the time, requested Volvo to “immediately suspend” the subscription program in California. It additionally urged the California New Motor Vehicle Board to impose disciplinary motion, together with monetary penalties, on Volvo.
A six-month investigation by California’s Department of Motor Vehicles that concluded in 2020 sided with sellers. It discovered that Volvo ought to have notified them about associated adjustments to the franchise settlement appropriately and that it offered preferential therapy in allocating subscription autos to factory-controlled shops.
The DMV additionally concluded that Volvo offered insufficient lease disclosures to subscription prospects. The division warned Volvo that future violations would possibly result in “enforcement actions” however stopped wanting taking any punitive steps.
Shortly after, Volvo halted the subscription program in California.
Source: www.autonews.com
