California car dealers take on Volvo over subscription service

California new-car dealers have asked Volvo to cease its Care by Volvo subscription service and allege the program violates the law.

According to a letter from Brian Maas, President of the California New Car Dealers Association, the service may illegally engage in the practice of “payment packing” for consumers. Automotive News (subscription required) reported Tuesday that dealers attest the brand is directly competing with its franchised retail outlets and the company illegally modified its franchise agreements.

Volvo responded to the letter in an official statement and said it plans to produce a formal response to the levied complaints next week.