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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.

Fore! Pro golfers race BMW i8 against a golf cart

You wouldn't think a couple of pro golfers racing a golf cart along a nice green course would get the blood pumping. But throw in a BMW i8 plug-in hybrid and things get at least a little more interesting. At least, that's what the German automaker is hoping for. Bimmer is swinging big with a cross-promotional video featuring two pairs of golfers racing plug-in vehicles at the 2014 BMW International Open golf tournament in Koln, Germany. Two of the golfers take your run-of-the-mill golf cart while the other two take a slightly more powerful BMW i8, with the goal to get to the course's "halfway house" first. The race, among other things, sends jackrabbits scurrying and shows off the i8's really cool doors and racy styling. The odd part – "spoiler" alert – is that the golf cart wins the race by taking a short cut through the course despite the fact that the i8 pairs a 231-horsepower turbocharged engine with a 131-horsepower electric motor. It's probably not exactly the message of high-speed performance BMW wants to convey but it would raise eyebrows if this weren't all a silly stunt. Check out the three-minute video below and then read our i8 First Drive impressions here.

BMW i8 customized by AC Schnitzer [w/video]

It may not enjoy the kind of factory support that Alpina does (let alone Munich's own M division), but as far as independent BMW tuners go, few have the kind of clout that AC Schnitzer does. Heck, it even won the DTM championship for BMW in its first year back in the series. And now the legendary Bimmer tuner has turned its attention to the i8. The list of Schnitzer's enhancements for the plug-in hybrid sports car is long, but perhaps wisely shies away from messing with the intricate powertrain. Instead the customization options focus on elements like the suspension, rolling stock, aero kit, and interior. AC Schnitzer has dropped the ride height by almost an inch at the front and 0.78 inches at the rear. It's fitted a set of 21-inch forged alloys with five split spokes and low-profile rubber to trim nearly ten pounds off the vehicle's unsprung weight while increasing its contact patch for better grip (albeit likely with higher rolling resistance). There's also a comprehensive rolling kit made of carbon fiber, including front spoiler elements, side skirts, and a rear wing that to our eye looks a little out of place on the i8, though individual customers may disagree. And the interior has been upgraded with aluminum pedals and velour floor mats. Of course customers will be able to pick and choose which elements they'd want to install on their hybrid vehicles, but you can check out the fully spec'd demonstrator in the high-resolution image gallery above and in the video below. (You just may want to turn down your speakers if you're not into German techno-pop.) Revolutionary Sporting Performance and Innovative Design The i8 by AC Schnitzer emphasises the strengths of the plug-in hybrid from Munich The BMW i8 is revolutionising its vehicle class as the first sports car to have the fuel consumption and emission values of a small car. Now thanks to AC Schnitzer, this revolution is being followed by another: the AC Schnitzer special equipment for the BMW i8 emphasises even more clearly the sporting performance and innovative design of the powerful, environmentally-friendly coupe. Lowered by 25 mm at the front and 20 mm at the rear, the i8 by AC Schnitzer hugs the tarmac more closely than the standard vehicle and can therefore develop maximum efficiency and dynamics on the road.