Volvo Cars new subscription service that kicked off by offering the XC40 is already succeeding.
Anders Gustafsson, president and CEO of Volvo Cars USA, said during the company’s press conference at the New York International Auto Show that the company’s new subscription service launched with the introduction of the new XC40 is already off to a promising start.
Volvo expected subscriptions, where customers pay one flat price, to account for about 10% of XC40’s total sales. “We’ve already hit that,” he said. In addition, Volvo customers can now sign up for a subscription through Apple Pay.
Starting with the XC40, Volvo Cars introduced a new model of car access called “Care by Volvo.”
(Volvo XC60 lands honors as World Car of the Year. Click Here for the story.)
Care by Volvo is an all-inclusive, negotiation-free option that will be offered alongside traditional purchase and lease choices. It is described as making having a car as easy as having a smart phone. It has one national, flat-rate monthly fee, combined with the opportunity to upgrade to a new car as early as 12 months into a 24-month agreement.
The new ownership model complements Volvo’s revived product line. The XC60 was named World Car of the Year during opening of the New York Show and XC40 has been named European Car of the Year, Gustafsson said.
Gustafsson also noted during the press conference that Volvo Cars continues to refine and expand its revived product line.
“The addition of the Inscription trim level gives Volvo customers even more flexibility when choosing the XC40 that works best for them,” said Gustafsson “We expect the XC40 to be very popular with North American consumers because it is different and special, not something you see every day,” he said.
The arrival of the new XC40 means that for the first time in its history, Volvo Cars has three new SUVs in what is the fastest growing segment of the automotive market, paving the way for further growth regarding sales and profitability.
The new Inscription trim level brings unique features and an expanded list of standard equipment that distinguishes it from the well-equipped Momentum and sporty R-Design trim levels.
(Click Here to see more about the growing list of automakers adding subscription leasing services.)
The XC40 Inscription can be equipped with unique 18-, 19-, 20- or 21-inch wheels, as well as unique skid plates, chrome side window trim and grill, integrated dual tailpipes and trim-specific exterior colors. Inside, Inscription adds a newly designed Orrefors crystal gear shift and attractive Driftwood deco, which Volvo first introduced in the award-winning XC60 mid-size luxury SUV.
Volvo Cars also brought its next generation wagon, an additional variant of its latest award-winning SUV, and the 2018 World Car of the Year, the XC60, to North America today, as the company builds on a strong start to 2018.
The all-new V60 small luxury wagon comes 65 years after Volvo Cars introduced the first Volvo wagon. The XC40 Inscription trim offers a more luxurious version of the popular compact SUV and is an addition to the momentum and sporty R-Design options.
The all-new V60 luxury midsize wagon shares Volvo Cars’ Scalable Product Architecture (SPA) platform with the award-winning XC60 (2018 World Car of the Year and 2018 North American Utility of the Year) and four top-of-the-line 90 Series cars, which have been the collective force behind the company’s record-breaking global sales performance in recent years.
In a first for the segment, customers can access the new V60 via Care by Volvo.
(Volvo subscription plan for XC40 starts at $600 a month. Click Here for the story.)
In the United States, the 2019 V60 will be available with a T5 front-wheel drive Drive-E powertrain with 248 horsepower, and a T6 all-wheel drive Drive-E powertrain with 316 horsepower. Both will be fitted to eight speed automatic transmissions.