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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.

Five B-Class F-Cells go from SF-LA using public hydrogen stations

California's hydrogen islands in Los Angeles and San Francisco finally got the bridge they needed to become the "Hydrogen Highway." With the completion of a permanent public station in Coalinga built by FirstElement Fuel, 205 miles north of LA, 183 miles south of SF, fuel-cell-vehicle owners can complete the road trip without worry. Mercedes-Benz did just that with five B-Class F-Cell customers, spending three days covering 1,000 miles and filling up only at public permanent stations in Burbank, Coalinga, West Sacramento, and Emeryville. Mercedes says there are ten stations in California now, but more than 40 are scheduled to open in 2016, and about ten more every year after that through 2023, when there should be 123 open stations. The company's US fuel-cell fleet is 70 strong and has covered more than two million miles in the five years they've been on the roads here. On average that means each car has driven just 5,714 miles per year, but that number should go up now that they can stretch their hydrogen stacks. The press release below has more information. Nearly 1,000 fuel cell electric miles: Crossing California on Hydrogen - Five Mercedes-Benz B-Class F-CELL complete emission-free drive from Los Angeles to Northern California while only filling up at public hydrogen stations - "California Hydrogen Highway" is connecting the dots - U.S. F-CELL customers have accumulated over 2 million miles since 2010 Stuttgart, Oct 27, 2015 - Mercedes-Benz B-Class F-CELL customers ventured beyond Southern California last week for the very first time, while only filling up at existing public hydrogen stations along the route from Los Angeles to San Francisco. The opening of a new hydrogen station in Coalinga along the I-5 corridor made this opportunity possible. A team driving five B-Class F-CELL refilled at four permanent hydrogen fueling stations located in Burbank, Coalinga, West Sacramento and Emeryville, accumulating nearly 1,000 miles over the course of their three day trip. Three F-CELL customers were accompanied by a team from Mercedes-Benz Research and Development North America based in Long Beach. The purpose of this unique road trip was to highlight the growing hydrogen station network and to show that the vision of the California Hydrogen Highway is becoming reality. Early adopter Loki Efaw who has been an F-CELL driver since 2011 believes fuel cells are the future: "I don't want a car that only takes me to work and back before I have to plug it in.

2016 German Grand Prix race recap: so-so racing, great questions

We can summarize the 2016 German Grand Prix in one sentence: Mercedes-AMG Petronas driver Lewis Hamilton started second on the grid, passed pole-sitter and teammate Nico Rosberg before the first corner, and dominate to the finish. In fact, Hamilton turned his engine power output down on Lap 3 and still took the checkered flag seven seconds ahead of Red Bull driver Daniel Ricciardo. Ricciardo's teammate Max Verstappen crossed the line another six seconds back. Rosberg fell to fourth at the first corner and couldn't find the pace to reel in the Red Bulls. His questionable pass on Verstappen didn't help when the stewards penalized Rosberg five seconds; the overtake reminded us of Rosberg's move on teammate Hamilton in Austria. That penalty turned into eight seconds when the Mercedes-AMG Petronas stopwatch didn't work in the pits. Ferrari pilots Sebastian Vettel and Kimi Raikkonen finished fifth and sixth. Those six drivers all started in the top six, too. Behind them, on Lap 28 of the 67-lap race the next four drivers were Valtteri Bottas in the Williams, Nico Hulkenberg in the Force India, and Jenson Button and Fernando Alonso in McLarens. Low fuel and old tires put the kibosh on Alonso's pace just four laps from the finish, allowing Force India's Sergio Perez to pass, rounding out the top ten. The issues up for debate during the four-week break are far more interesting than the weekend's race. As bad as Ferrari's day might have been – and we'll get to that – Rosberg probably took the biggest hit, losing the race before the first corner for the second weekend in a row and falling 19 points behind Hamilton. Rosberg won the first four races of the season, then the teammates tripped over one another in Spain. Hamilton's won six of the seven races since Spain, Rosberg's best result in that time is a second-place in Hungary. Hamilton turned his engine down on Lap 3 (!) because he's used his entire season's allotment of five turbochargers and five MGU-Ks. Those early-season gremlins now have him on edge of grid penalties. Unless Hamilton's momentum cools off in August, however, that reliability danger might be the only dent in his armor. Rosberg, who once led the Championship by 43 points, will surely drown in his thoughts – and maybe schnapps – over the summer break. Whatever the Italian word for "meditation" is, there'll be a lot of it at Ferrari during the F1 summer break.