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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.

Alex Zanardi talks new challenge at 24 Hours of Spa with BMW

"I have overcome greater things in my life than driving at night." When considering Alex Zanardi's tumultuous life and racing career, the notion that he might be worried about racing for the first time at night seems patently absurd the moment I pose the question. But as I've discovered previously, ask Zanardi a question and his reply - even a brief one - will offer analysis. "I'm really looking forward to it," he says, before adding: "Also, it will be much cooler." Zanardi is talking about the latest installment in his racing career - the 24 Hours of Spa - where he will race a BMW Z4 GT3 alongside fellow ex-Formula 1 driver Timo Glock and DTM driver Bruno Spengler. For the second year, Zanardi is running with ROAL Motorsport, and the team has the full weight of BMW behind it as it prepares to go up against 57 other cars on the historic Belgian circuit this weekend. I first met Zanardi last year at Brands Hatch on a hot May afternoon after his one-hour Blancpain Sprint Series race. He was exhausted and downing can after can of cola but still happy to chat to fans as he cooled off. I ask why, if that was such a tough experience, he is prepared to do it for 24 hours. "It's a good question, why would I?" he ponders aloud before quickly adding: "I am confident I am as well-equipped as I can be to face such an enormous commitment." That confidence comes from three developments that have allowed him to be the first disabled driver to race the Spa 24H. Firstly, his athleticism; since Zanardi lost both his legs in the horrific CART accident at the Lausitzring in 2001, he has drawn admiration for his subsequent achievements as a racing driver and paracyclist; the Italian won two golds and a silver at the 2012 London Paralympics in handcycling. The man is seriously fit. The next major change is inside the Z4 cockpit, where he has worked with BMW engineers to adapt the braking system without hindering his able-bodied teammates; having two others sharing the car with him is a new challenge for both Zanardi and BMW. New controls, particularly the brake pedal, were designed with impressive results. "[The engineers] made my life easier quite dramatically via ergonomics, pushing the brake pedal and the footrest where I put my prosthetic feet to the side of the space that was available. "This makes everything better for me. The ratio of the brake pedal is changed.

BMW rolls out new M4 safety car for DTM

Ever since revealing the M4 on nearly five months ago, BMW has been hard at work getting its new muscle coupe out on the track. It's made a touring-car version to compete in DTM and a safety car to set the pace at MotoGP races, and now it's combined both into a new safety car for DTM as well.
The ninth M4 on the DTM grid is based on the production version, but fitted with numerous upgrades over the course of a two-month conversion process. For starters, it's been equipped with nearly exterior component from the M Performance Parts catalog, including the quad-tipped exhaust, front splitter, rear spoiler and diffuser, blacked-out grille, special mirror caps, side sills... the works. But that's not the end of the story.
BMW M GmbH also gutted the interior, removing the rear bench and replacing it with a roll cage. It's got a pair of Recaro racing buckets with Schroth harnesses, plus special LED emergency lighting, radio communication system and, of course, special livery (albeit nowhere near as cool as the MotoGP one) to distinguish it as the official safety car when it makes its debut at the Nürburgring on August 17.