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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

Volvo Concept XC Coupe is ready to hit the slopes

There's something inescapably right about a Swedish car with a set of skis on its roof. It doesn't matter if it's a Jurassic-era Volvo Amazon, a Saab 900 Turbo, or even a Koenigsegg Agera R. Surely it's some sort of Scandinavian birthright... right along with immaculate complexion. The latest to carry on that tradition in fine form? The Volvo Concept XC Coupe, just released at this week's Detroit Auto Show.
The two-door, four-seat XC Coupe rolled onto stage here at Cobo pre-outfitted with a matching ski box, looking sharp on its 21-inch wheels. According to Volvo, the box isn't an afterthought - in fact, the XC Coupe's design itself was "inspired by modern sports equipment."
As for the rest of the concept's genetic makeup, at this point, we don't have much to go on. Volvo has admitted that the XC Coupe rides atop its new boron-steel-intensive Scalable Product architecture, but it has declined to outline any sort of powertrain details. We're not sure if this showcar has any production future, but we do expect for its design language to inform the next-generation XC90 crossover.

Volvo will replace C70... eventually

Volvo has already announced the end of production for its C70 hardtop convertible, a handsome but seriously dated offering that was last refreshed in 2010. Volvo won't be abandoning the two-door coupe-convertible market for long, though, as news out of Australia claims that a replacement, based on the striking Concept Coupe, will join the Chinese-owned, Swedish brand's ranks, although it's unclear precisely when we'll see it on the road.
"Eventually yes... as soon as possible," Hakan Samuelsson, Volvo's CEO, told the Drive, before adding, "when we are ready."
"The Coupe Concept car, we can put that into production and it will have an exposure on the brand. But at the end it's the cream on the cake and at the end you need the cake first before you put the cream on it," said Volvo's Senior Vice President of Product Strategy and Vehicle Line Management, Lex Kerssemakers.