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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

BMW i3 Shadow Sport limited edition opens a moon roof on US

Here's a bit of news for a quarter-million dollars. BMW is bringing a special edition i3 called Shadow Sport to the US for the 2016 model year. That tag refers to the special-edition Bimmers that come equipped with a moon roof, which before this was unavailable in the US. But only 50 lucky folks will get them. The Shadow Sport edition comes with a few other goodies, too, including "fluid" black paint, 19-inch alloy wheels, custom-trim interior and sport-tuned suspension, though there are no changes in the electric motor or performance. That means the same single-charge range of 81 miles, the same 0-60 miles per hour acceleration time of seven seconds flat and the same top speed of 93 miles per hour. If you experience a little slower speed and a little shorter single-charge range because you're spending too much time looking out of the moon roof, that's on you. The catch is that the model won't be available for the i3 vehicles with the gas-powered range extender, i.e. the i3 REx. The Shadow Sport will also have a price of $47,400, or $5,000 more than the base model i3. BMW's Dave Buchko told AutoblogGreen that all 50 Shadow Sports have been sold, with the first 40 selling out in the first hour or so of availability. The Shadow Sport is on display at the Los Angeles Auto Show this week. Through the first 10 months of the year, BMW sold 8,879 i3 vehicles, which was double year-earlier figures. Last month alone, though, things weren't as rosy, as October i3 sales declined 15 percent from a year earlier to 986 units. There's more information at the bottom of BMW's LA Show press release, below. BMW at the 2015 Los Angeles Auto Show: Making its North American Premier, BMW will showcase the all-new BMW 7 Series, all-new BMW 3 Series eDrive, all-new BMW X1 and the exclusive motorsport inspired BMW M4 GTS. BMW i will premiere BMW Laser Light, available for the first time in the US, as well as the limited edition BMW i3 Shadow Sport, featuring exclusive exterior paint color and interior design, moonroof and sport tuned suspension. Woodcliff Lake, N.J.: November 17, 2015 12:00 pm EDT /9:00 am PDT... The all-new BMW 3 Series eDrive, BMW M4 GTS, BMW X1 and the BMW 7 Series will make their North American debuts at the 2015 Los Angeles Auto Show held at the Los Angeles Convention Center. In addition, BMW will feature the eDrive BMW X5 xDrive40e as well as the high-performance BMW i8, the all-electric BMW i3 and other BMW models at the BMW display.

Monsoon rains disrupt production for Ford, BMW in India

Even modern production techniques can be stymied by Mother Nature. This was demonstrated most recently in India, as torrential, monsoon rains caused a deluge that forced multiple automakers to suspend production. Ford, Renault, and BMW all halted work at their Indian facilities around the southern city of Chennai, also known as Madras. The annual rains disrupted public transport around the city, preventing employees from making the trek into city's factories. According to Automotive News, Chennai saw 48 inches of precipitation last month alone, which is more than Seattle, WA saw in all of 2014. While Ford and BMW closed things down for all of December 1, Renault just cancelled a pair of shifts at its Chennai factory. This is the second time in the past month that automakers in southeast India have been forced to stop production due to severe flooding, and things aren't likely to improve. According to The Weather Channel, forecasts call for thunderstorms over five of the next seven days, while the chance of rain won't fall below 80 percent until December 8. Ford, Renault, and BMW are far from the only automakers that could stand to be impacted by the rains. The city has been nicknamed "The Detroit of India" for its extreme automotive presence. Daimler, Hindustan, Hyundai, Mitsubishi, and Nissan all own factories in the region. News Source: Automotive News - sub. req.Image Credit: STR / AFP / Getty Images Plants/Manufacturing BMW Ford Renault