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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.

What's up with this thought-controlled BMW i3?

Autonomous driving? A car being controlled by just verbal commands? One pilot program is going way beyond that this year with a car that can theoretically be mind-controlled. UK-based insurance-services company MoneySuperMarket is promoting something called "Epic Mind Drive." The project involves a BMW i3 electric vehicle (nice and futuristic) being rigged up with an autonomous driving system. Only instead of the system watching the road, it involves a person sitting in a seat outside of the car with an electroencephalography (EEG) neuro headset connected to the vehicle. In fact, that headset records brain activity and translates it into instructions. Those instructions are converted to radio frequency that's sent to the car to instruct it to perform various speed and turning duties. Apparently, yes, the car will be mind-controlled. Somehow. If this were intended for real-world use, it would go far beyond the autonomous-driving programs that have been in the works for the past couple of years. Nissan has been real active in that area, with chief Carlos Ghosn saying earlier this year that a "hands-free" car for heavy stop-and-go traffic may be available within the next couple of years. And last year, Google unveiled its autonomous car prototype (though it wasn't nearly as cool-looking as the Bimmer i3) while Tesla Motors has been making noise in that area as well. Besides the i3, MoneySuperMarket has developed the Epic Mind Drive mobile game that uses face-tracking technology to control a car on the screen. The idea with these two whiz-bang ideas is to get drivers to realize that they should think as they drive, it seems. As for the telepathic i3, we're as interested in details as the next website, so we checked out the two videos that are supposed to hype the project. While there is some groovy jazzy-electro music involved, the details of how this works are pretty much nonexistent (16 sensors, think to turn the wheel, and that's about it), so we look forward to hearing more about the project once it's underway. You can check out the videos above and below. News Source: Daily Mail, MoneySuperMarket Green BMW mind control

BMW is the US auto industry's leading exporter

Which automaker do you think ships the most cars out of North America, one of the Detroit Three or perhaps one of the Japanese automakers? Nope. It turns out the BMW's Spartanburg, SC, factory is the biggest automotive exporter from the continent in the United States. According to a recent profile by Bloomberg looking at the plant's 20th anniversary, Bimmer's southern ops sends out more vehicles than all of Michigan combined.
When the Spartanburg factory opened up in 1994, its success was hardly assured, largely because of South Carolina's relatively small economy at the time. However, BMW picked the site because of its proximity to East Coast shipping that made it easier to move engines and transmission in from Germany and export vehicles back to Europe, according to Bloomberg. The Bavarians clearly made the right choice.
Today, the plant has developed into an absolute powerhouse. The factory currently assembles the X3, X4, X5 and X6 and exports about 70 percent of the vehicles built there. Things are only getting better. BMW is investing $1 billion through 2016 to boost annual production from the current 300,000 units up to 450,000 and to build a new flagship crossover called X7. The expansion also adds a further 800 jobs there to take total employment up to about 8,800. Including the latest financing, BMW has put over $7.3 billion into the factory since it opened, notes Bloomberg.