Volvo begins delivering cars through its subscription program

A Volvo representative confirmed Wednesday that the automaker's Care by Volvo subscription service is now able to deliver the automaker's XC40 crossover SUV in most states and that the 2019 S60 sedan unveiled at the automaker's new assembly plant in South Carolina is on track for subscription deliveries by the end of 2018.

"Care by Volvo deliveries are happening daily across the country," Volvo spokesman Jim Nichols said in an email. "We are awaiting final paperwork from Massachusetts and New York so we may begin deliveries there. That should be any day now."

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Care by Volvo gives subscribers a flat-rate, pay-by-month program that bundles insurance, maintenance, and wear-and-tear items such as wiper blades and tires into a 24-month commitment. The program was announced last December with a starting price of $600 monthly, but a number of logistical hurdles prevented the automaker from actually delivering the XC40s until recently.

Volvo CEO Hakan Samuelsson said insurance regulations may have held up initial deliveries, which were widely publicized.

"It's not something with the car. It's not something with the concept." Samuelsson said.

"I would call the program a success," he added.

Nichols didn't elaborate further on the delivery hangups, but said significant paperwork in each state held up handing Care By Volvo cars to subscribers.

Volvo also lets subscribers swap into a new car after one year in the program, although doing so resets the 24-month subscription.

The S60 compact luxury sedan that debuted Wednesday at the new Charleston, South Carolina, assembly plant that will build it is also set to be available through the subscription service.

Although Volvo hasn't released full details for the S60's trim levels, on Wednesday it did release monthly fees for Care by Volvo subscribers.

The least-costly S60 in the program is the T6 Momentum trim level at $775 per month and Nichols said it will be available by the end of the year in a choice of eight exterior colors.

The S60 T6 R-Design, which won't be available until early 2019, adds a sports suspension, 19-inch wheels, nappa leather/textile upholstery, and 19-inch wheels for $850 monthly. Volvo says that its S60 T8 plug-in hybrid with suspension, brake, and powertrain upgrades from its Polestar performance division will eventually be offered in "extremely limited quantities," but the automaker declined to list a price.

Aaron Cole contributed to this report.

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