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Volvo vows to charge subscriptions only for major updates

Volvo Cars Chief Operating Officer Bjorn Annwall   BMW veered into a public-relations mess this year when it started charging car owners monthly subscription fees to warm their behinds. Volvo Car won’t be making similar moves. “If you are to charge for software updates, it must be a step change in consumer benefit,” VolvoÂ’s Chief Operating Officer Bjorn Annwall said in an interview this month. “We will not ask people who have bought a car for 1 million kronor ($96,500) to pay another 10 kronor to get extra heat in the seat.” While BMW will no doubt have other manufacturers follow in its footsteps — Mercedes-Benz recently started asking buyers of its EQ electric vehicles to fork over $1,200 a year to unlock quicker acceleration, for example — the auto world has started to second-guess just how much money there is to be made from the rise of software within their hardware-intensive business. In a 91-page deep dive into the topic last month, analysts at UBS pegged the total addressable market at $700 billion by 2030. ThatÂ’s no pittance, but pales in comparison to the $2 trillion opportunity they anticipated previously. Annwall sees Volvo generating little additional revenue from software until mid-decade. Only if major upgrades become available — a self-driving mode, for example — would Volvo charge extra. “You donÂ’t have to hold the steering wheel — now thatÂ’s a step change in user benefit.” Annwall was speaking at the opening of VolvoÂ’s new tech hub in Stockholm, where the manufacturer builds software for selling and marketing cars online. The company, which last month unveiled a battery-powered sport utility vehicle to succeed its gasoline-era flagship, intends to cease making combustion cars by the end of the decade. ItÂ’s going to be an uphill push: EVs made up just under a fifth of the companyÂ’s shipments last month. Bloomberg spoke with Annwall about VolvoÂ’s tech efforts, the software issues that have plagued some of its competitors and the ongoing supply-chain issues holding back the industry. Here are highlights from the conversation, which have been edited for length and clarity: Large automakers including Volkswagen have had problems with their car software. Have you experienced similar obstacles? I wonÂ’t hide the fact that we have had some problems with our software in the car as well. But weÂ’ve been good at correcting them fairly quickly.

Junkyard Gem: 1997 Volvo V90

Volvo's "Brick Era" of squared-off rear-wheel-drive machines lasted from the debut of the 144 in 1966 all the way through the 900 Series cars of the 1990s, with the wildly successful 240 being the most iconic of the breed on our shores. The final chapter of the Swedish Brick saga came in the 1997 and 1998 model years, when the 960 sedan and wagon were rebadged as the S90 and V90, respectively. Here's one of those cars, a refrigerator-colored (and refrigerator-shaped) V90 wagon that got forcibly retired after a crash in Northern California. Volvo revived the V90 name in 2016, and you can buy a new V90 right now if you so choose. Today's Junkyard Gem, however, is the culmination of four decades of improvement to the original 140 design (itself based on much of the Amazon's chassis features and sharing plenty of components with the 1940s-era PV Series cars), while the current V90 comes straight out of the 21st century. I've been going out of my way to document just about every discarded 140 and 240 wagon I find, with some 740s and 940s mixed in. Many Volvo longroof owners still maintain a fanatical devotion to the rear-wheel-drive bricks, and I've found some of these cars in junkyards with impressively high final odometer readings. The fuel-efficiency and interior-space limitations of the old-timey brick design kept 960 sales lower than those of their predecessors, though, and I haven't met any 960 owners who share the level of devotion that 145 and 245 owners lavish on their cars. This car just squeaked past 150,000 miles during its 24 years on the road. The body and interior look to have been in very nice condition, showing that meticulous owners took good care of this car throughout its life, but then it got T-boned on the right side. This sort of damage isn't worth fixing on a quarter-century-old European wagon, and so here it sits. This engine compartment looks very similar to that of the old 240, though this modern 3.0-liter, DOHC straight-six and its 181 horses runs counter to the super-sensible spirit of most of those 1970s Goteborg bricks. The 960 was far more plush than its ancestors, and priced accordingly. In 1997, this car's list price started at $35,850 (about $60,660 in 2021 dollars). By comparison, a new 1975 245 wagon had an MSRP of $5,795 (about $29,940 today).

Volvo P1800-based gasser is UK's entry in the Hot Wheels Legends Tour

Hot Wheels has spent the past few months touring the United States in search of the next custom car it will add to its catalog of 1/64-scale diecast models. It's not stopping there: It also headed to the United Kingdom to add a bit of international flair to the competition, and it selected a Volvo P1800 that has been heavily modified into a gasser as the winner that will move on to the semifinal round. Owner Lee Johnstone explained he built his P1800 — which he nicknamed "Ain't no Saint" — starting with a bare shell that had been stripped and that was too far gone to properly restore. Volvo's 1960s four-cylinder engines are famously tunable, but Johnstone looked across the pond for an engine suitable to make his dream car a reality. He chose a 454-cubic-inch V8 sourced from the Chevrolet parts bin and supercharged to develop about 600 horsepower. Ain't no Saint reportedly runs a 10.01-second quarter mile at 133 mph. Johnstone regularly races the P1800 with his three daughters. He consequently named his team Johnstone & Daughters (JD) Racing. "This is a beautiful example of a gasser — a drag racer with street car form. Often with dragsters, the chassis is so important that the body gets overlooked, but this example is fabulous with great attention to detail," explained former Jaguar design director Ian Callum, who was one of the judges that selected the P1800 as the United Kingdom's finalist. "It completely hits the Hot Wheels brief." Hot Wheels has already released several gassers, including one based on a 1955 Chevrolet Bel Air. Time will tell if Johnstone's P1800 will become the next addition to the series. Its next stop is the global semifinal round scheduled for November 4, 2021, where it will compete against some of the previous winners. There are two semifinal rounds taking place before the grand finale planned for November 13.