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Car manufacturer Volvo Cars is discontinuing its car-sharing service Volvo On Demand, according to a press release.

The decision is taken due to a challenging macroeconomic environment that has led to increased costs to operate the service with the quality that Volvo Cars requires and that it believes its customers can expect.

The service will be open to private customers in Sweden until January 13, 2025 and booking of new cars will be possible until then.

"Volvo Car Sweden has attractive leasing options for our customers to meet the needs of the market for smooth and environmentally friendly mobility and we will also continue to provide rental cars through Hertz in Sweden. We have the highest share of electric cars among all comparable premium car manufacturers and plan to launch more," says Jessica Span, CEO of Volvo Car Sweden.

To Di, Jessica Span says that the notice concerns about 50 employees who are employed at Vovo Car Mobility.