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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 says no more manuals, M cars capped at 600 hp

BMW appears to be approaching a big change in the way that it handles performance. First, the clutch pedal may be a goner from future M models, based on recent statements from the division's boss, Frank van Meel. We also might not be seeing any significant increases in horsepower from some of these vehicles anytime soon. "From a technical standpoint, the future doesn't look bright for manual gearboxes. The DCT and auto 'boxes are faster and they have better fuel consumption," van Meel said to Autocar. Although, he left the door open slightly to keeping them at least in the near future. "It's difficult to say we'll stick to the manual, but we still have a big fan community for manuals and we are not going to take away something the customer wants to have." Van Meel also suggested that the company is capping the output of M models at 600 horsepower. "We're at the limit. If you go on adding more horsepower and torque, it'd probably be over the limits," he said to Autocar. That ceiling does leave some room to grow for future versions of the M3 and M4, which currently offer 425 hp. However, it means that the M5 and M6 with 560 hp are basically at the cap. The limited BMW M5 30th Anniversary Edition already packs 600 hp. Rumors have suggested that the already spied, next-generation M5 might stick with around 600 hp. It seems unlikely for BMW to completely give up competing against the Autobahn-burning sedans from Mercedes-Benz and Audi. Performance could still see a boost thanks to a reportedly lighter platform and optional all-wheel drive. Related Video: News Source: AutocarImage Credit: Copyright 2015 AOL BMW Technology Performance bmw m dual clutch transmission automatic transmission

Finalists for 2014 Green Car of the Year announced

The list of finalists for the 2014 Green Car of the Year has been announced, and in a genuinely bizarre twist, there's only one hybrid and no electric vehicles among the five contestants, despite the arrival of cars like the BMW i3 and Tesla Model S. Taking the place of the EVs are a pair of diesels, repping a technology that last won a Green Car of the Year award in 2009, when the Audi A3 TDI took the title. No diesel was in the running for last year's award.
Naturally, both of the diesel finalists are fielded by the Germans - with BMW's 328d and Audi's A6 TDI getting the nod. In the case of the 3 Series, BMW installed a 2.0-liter, turbodiesel, capable of delivering 180 horsepower and 280 pound-feet of torque, while returning 45 miles per gallon on the highway. Audi and its larger, 3.0-liter, V6 turbodiesel produce quite a bit more grunt, with 240 hp and 428 lb-ft of grunt, but net a very impressive 38 mpg on the highway in the A6.
Finalists for this year's awards include two diesels, three gas-powered cars and a plug-in hybrid.