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Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

Lincoln opens the doors again to the Continental Coach Door Edition

Last year, Lincoln did a limited — just 80 — run of stretched Continentals with '60s-style suicide doors to mark the nameplateÂ’s 80th anniversary. (The Continental launched in 1939 as a special project of Edsel FordÂ’s.) Those cars, officially the 80th Anniversary Coach Door Edition, quickly sold out. That enthusiastic reaction prompted Lincoln to commit to a return engagement. As promised, Lincoln is back with a Coach Door Edition of the 2020 Lincoln Continental. The essential elements are the same as last time. The sedans are based on the top-spec all-wheel-drive Black Label trim level and powered by the 400-hp 3.0-liter twin-turbo V6. TheyÂ’re stretched six inches between the axles, and the longer rear doors are rear-hinged. The work again is being done by Cabot Coach Builders in Massachusetts. The rear-hinged doors retain the ContinentalÂ’s signature exterior door handles that are integrated into the beltline molding with electronic releases. Inside, a full-length center console divides the rear seats and incorporates a table, wireless device charging, audio and climate controls, and tablet/notebook computer holders. The doors each house a Lincoln-branded umbrella, and the door sills are illuminated. Three exterior colors are offered: Chroma Crystal Blue, Infiniti Black and Pristine White Metallic, with the latter two available in a monochrome treatment. Inside, buyers have their choice of two themes: Alpine / Chalet or Jet Black / Thoroughbred. A standard all-wheel-drive Black Label starts at $75,470 (before options), but the 2020 Lincoln Continental Coach Door Edition will start at $115,470 (plus destination fee). This yearÂ’s production run will be approximately 150 cars, and order books open today (Friday, Oct. 4) with deliveries scheduled for spring 2021.

2019 Lincoln Nautilus replaces the MKX, adds a price increase and tech

The 2019 Lincoln Nautilus forms the next step in Lincoln's overhaul. Replacing the crossover formerly known as the MKX — the brand's best-seller in the U.S. — the Nautilus gets all-new sheetmetal from the A-pillar forward. This includes a mesh grille and chrome accents that bring the midsize CUV in line with the Continental sedan and Navigator full-sized SUV. A new base engine and more standard equipment help pad a price increase, the Nautilus starting at $40,340, plus $995 destination, for $41,335 total. That's a $1,305 price bump over the MKX, and just $255 short of the starting price of the crosstown rival Cadillac XT5. Optional all-wheel drive adds $2,495. The "Premier" appellation for the entry-level model goes away — it's now just Nautilus. The Select, Reserve and Black Label trims carry over. Lincoln said the new interior bestows best-in-class headroom and legroom. The standard model comes with 10-way power seats, a 12.3-inch digital dash, an eight-inch infotainment display with Apple CarPlay, Android Auto, and Sync 3, and 18-inch wheels. The $45,540 Select adds leather seats, heated steering wheel, navigation, and LED fog lights. The $49,870 Reserve puts climate control in those seats, a panoramic roof overhead, a 13-inch Revel audio system all around, and 20-inch wheels below. The $57,890 Black Label upgrades to Venetian leather seats and Alcantara headliner, a 19-speaker Revel Ultima stereo, and 21-inch aluminum wheels, plus a host of exclusive interior materials, and anytime car washes. The standard engine goes down in power: the 2.0-liter, twin-turbo, four-cylinder EcoBoost puts out 245 horsepower and 280 pound-feet of torque, replacing the 3.7-liter V6 that got 303 hp and 278 lb-ft. Yet the old 3.7-liter made do with a six-speed automatic, while all Nautilus models get Ford's new eight-speed automatic, and the EcoBoost comes with start/stop. The optional engine, available on Select, Reserve, and Black Label trims, remains a 2.7-liter twin-turbo V6 with 335 hp and 380 lb-ft, and costs a further $2,070. The Nautilus introduces Lincoln Co-Pilot 360 to the range, which bundles features such as automatic emergency braking with pedestrian detection, a backup camera, and blind-spot information with cross-traffic alert. You can play around with all the options on the Nautilus configurator. While you're there, spare a thought for the MKZ sedan and MKT crossover.