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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.

BMW Pininfarina Gran Lusso Coupe and Concept 90 pics from Villa d'Este

Royalty and the ultra-wealthy rubbed damp shoulders at this past weekend's Concorso d'Eleganza Villa d'Este on the shores of Italy's Lake Como, but even the rain couldn't extinguish the excitement generated by the millions of dollars of cars and bikes on display. Nowhere was this more true than with BMW, which marked the occasion with the reveal of two stunning concepts with six wheels between them - the shark-nosed Pininfarina Gran Lusso Coupe and the retrosexual Concept 90 motorcycle.
Conceived with Italian design house Pininfarina, the Gran Lusso Coupe is a power broker on 21-inch wheels. While we're not completely sold on every element of its design, this twelve-cylinder two-door concept moves us more than the current 6 Series, and not just because it has four more cylinders underhood and 48,000-year-old kauri wood paneling inside. BMW is sadly mum on production hopes, but we're not entirely optimistic - the company has graced us with a number of attractive concepts at Villa d'Este before, only to pack them away again without ever affording them a production future.
If one of these concepts has a better shot at finding its way into dealers, we have to believe it's the Concept 90 under the BMW Motorrad umbrella. Designed to celebrate the 40th anniversary of BMW's R 90 S, we think this Roland Sands Design air-cooled boxer would look fantastic on today's streets, especially with the rising popularity of vintage motorcycles and cafe racers.

BMW to show car that can park itself in a multi-story garage at CES

Automatic parking systems are something of a novelty, in their present form. Sure, modern parallel parking systems work well enough. And they're great if you lack the special awareness required to complete such a task. But frankly, how often is the average owner of such a system in a position to use it? Perpendicular parking systems, meanwhile, are basically an admission that you don't really deserve a driver's license. Novelties these systems may be, but they promise a future where we won't even need to be behind the wheel to park our cars. BMW is going to deliver a vision of that future at the 2015 Consumer Electronics Show with the Remote Valet Parking Assistant, a smartwatch-activated system that takes the driver out of the parking equation and replaces them with an advanced collision avoidance system. Fitted to an i3 for CES, the BMW system relies on four laser scanners to map the surrounding environment and identify obstacles. Combined with a digital site plan for a building, the company claims its car can navigate its way to an open parking spot, moving around even unexpected obstacles like improperly parked cars. The car's owner can step out of the vehicle at the intended destination, and then tap the smartwatch app for vehicle parking and retrieval. BMW claims this system will allow more precise control than GPS, particularly in something like a multi-story parking deck. While it's an intriguing route with autonomous technology, we wonder how much is required of these digital site plans. There are more practical uses of this technology, beyond valet parking. According to BMW, the collision-avoidance technology can aid a driver in low-light conditions, automatically braking the car for its driver when an obstruction is detected. Look for more on BMW's Remote Valet Parking system as the 2015 Consumer Electronics Show approaches. Until then, scroll down for the full press release. BMW Innovations at the 2015 Consumer Electronics Show (CES) in Las Vegas. 360-degree collision avoidance and fully-automated parking in multi-storey car parks. BMW Remote Valet Parking, CES 2015. (12/2014) Munich/Las Vegas. BMW was already demonstrating at the Consumer Electronics Show (CES) 2014 how perfect control technology can provide highly automated mastery of all drive statuses right through to very tight margins.