Volvo Cars has announced it will discontinue its Care by Volvo subscription service in several European markets, including Germany, the Netherlands, Sweden, Norway, and the United Kingdom. Additionally, the automaker plans to phase out the program in the U.S., transferring existing contracts to new partners.

This decision represents a notable shift in Volvo’s strategy, following its recent pivot away from becoming an electric-only automaker by 2030 and reducing its reliance on direct online sales.

In a statement, Volvo explained that discontinuing its in-house leasing service will allow the company to offer more customized solutions to customers while reallocating resources toward further digitizing its operations.

Launched in 2017, the Care by Volvo program provided customers with a fixed monthly fee covering maintenance, insurance, tire changes, and digital concierge services. However, it faced several challenges, including resistance from dealers in California and issues with fluctuating contract lengths and pricing.

Despite recent growth in the subscription service across Europe, Volvo has opted to refocus on its core customer offerings and upcoming product launches. Existing Care by Volvo subscribers will be offered a credit toward the purchase or lease of a new Volvo upon completion of their contracts.