California dealer lobby moves to block Volvo's subscription serviceby Justin King
The regulatory petition claims the "Care by Volvo" program violates state franchise laws.
The California New Car Dealers Association (CNCDA) has kicked off a legal battle against Volvo's subscription service.
Known as Care by Volvo, the program allows subscribers to obtain a 24-month lease with insurance, maintenance and concierge service in a total package for a flat rate.
The CNCDA last year sent a letter to Volvo Cars North America asking the company to suspend Care by Volvo in California, arguing that the service represents direct competition to the automaker's franchise dealer network and consequently violates state law.
The lobby group has now filed a formal petition with California's New Motor Vehicle Board, according to Teslarati. The filing expands upon the arguments that were sent directly to Volvo, claiming that franchise dealers are being used as de-facto "agents" that effectively allow the automaker to lease directly to consumers.
The petition calls on the board to conduct an investigation into the alleged violations and order the DMV to "exercise its authority and power to initiate disciplinary proceedings or take other such steps as may be necessary to stop [Care by Volvo]"