Volvo’s unique subscription program raised the ire of the California New Automotive Sellers Affiliation.

The group argued that by providing subscriptions instantly by 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 Automobile Board arguing the legality of Care by Volvo. In August, the board directed the state’s Division of Motor Automobiles to analyze.

“Volvo is deceiving shoppers by saying this can be a subscription program; it is really a lease,” Maas instructed Automotive Information in 2020.

The affiliation, on the time, requested Volvo to “instantly droop” the subscription program in California. It additionally urged the California New Motor Automobile Board to impose disciplinary motion, together with monetary penalties, on Volvo.

A six-month investigation by California’s Division of Motor Automobiles 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 supplied preferential therapy in allocating subscription automobiles to factory-controlled shops.

The DMV additionally concluded that Volvo supplied insufficient lease disclosures to subscription clients. The division warned Volvo that future violations would possibly result in “enforcement actions” however stopped in need of taking any punitive steps.

Shortly after, Volvo halted the subscription program in California.