Volvo Deems Subscription Service A Must, Otherwise Amazon May Seize The Opportunity

The chief executive of Volvo Cars in the United States is standing behind the automaker’s subscription service and believes that if it doesn’t pursue such ownership models, Amazon chief executive Jeff Bezos probably will.

This comes in response to a number of car dealerships in California, who aren’t particularly impressed by the program, recently calling it illegal and filing a 199-page petition to the state’s department of motor vehicles to prevent the automaker from offering this service.

While speaking at a conference during the New York Auto Show, Volvo Cars’ U.S. head Anders Gustafsson indicated that the automotive industry needs to pursue subscription services and defended the new ownership model available with the XC40, Bloomberg reports.

Also Read: Volvo To Offer 20 S60 T8 Polestar Engineered Sedans In The U.S. Via Subscription

The Swedish car manufacturer announced its Care by Volvo subscription program in November 2017 with the launch of the XC40. Those looking to pick up the new Volvo can do so through a single payment, which varies between $650 and $850 per month and bundles all car, insurance and maintenance costs into a monthly payment for two years.

During his presentation, Gustafsson flashed a Jeff Bezos quote on screen reading “Your margin is my opportunity.”

“We need to be open to new ideas. Otherwise, I think the guy that is chasing our margins, he will find out far faster than we do,” Gustafsson said in reference to the quote of Amazon’s founder.

Bezos is the world’s wealthiest man and, prior to his recent divorce, had a net worth as high as $150 billion. Amazon has been slowly creeping into the automotive world, with consumers now being able to purchase vehicles via its website.

  • SteersUright

    Until subscriptions can be had somewhere around $500-$700, they won’t take off in huge volume.

Holden’s Auctioning Some Of Its Historic Models Including First 2001 Monaro

The auction includes an assortment of Commodores including a 1995 rally car.

2011 Mercedes S65 AMG Might Just Help You Gain Baller Status

The W211 Mercedes S65 AMG is powered by a twin-turbo V12 that puts out 604 HP and 738 lb-ft of torque.

The 2020 Mercedes-Benz GLS Will Cost You Upwards Of AU$144,600 In Australia

The new Mercedes-Benz GLS is available with two engines.

A 2020 Corvette C8 Just Crashed In Detroit’s First Snowfall

It’s hard to tell if the 2020 Chevrolet Corvette Stingray suffered any significant damage.

New Hyundai Santa Cruz Pickup Truck To Be Produced In Alabama And Go On Sale In 2021

Hyundai will finally start production of the Santa Cruz truck in 2021 .

Ferrari Roma Is A 2+ Coupe With Understated Styling And A 612 HP Turbo V8 (New Photos)

Ferrari’s latest model can rocket from 0-62 mph (that’s 100km/h) in 3.4 seconds.

2020 Toyota Supra Gets Into Apparent Hit And Run With Civic While Trying To Flee Car Meet

As police closed in, the 2020 Supra slammed into a Civic and then took off.

New Delhi Authorities Enforce Driving Restrictions To Reduce Smog

The World Health Organization reported in 2018 that India has the world’s 10 most polluted cities.

VW Begins Expanding Chattanooga Plant, Will Build ID.4 In 2022

The first American-made ID.4s are slated to go into production in 2022.

Maserati’s All-New Sports Car Coming In May 2020

The upcoming model will be offered with an electric powertrain that could have three different motors.