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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.

Recharge Wrap-up: Lego Tesla logo, BMW goes electric in Singapore

A man built a giant Tesla logo out of Legos. Adrian Drake, a Tesla owner, displayed his brickwork homage to the electric car company at Brickworld Chicago. In the video above, the hosts interview Mr. Drake about his creation, and he gives some insights into how he conceived and constructed the freestanding display. Drake also demonstrates its sturdiness, giving the logo a tap to send it wobbling precariously from side to side. You'll probably notice that standing to the left of the logo is a Lego model of a Tesla Supercharger. That was built by Robert Turner and can be seen in a separate video. See the Lego Tesla logo in the video above, and read more at Teslarati. Canadian power generator TransAlta will use Tesla stationary batteries for a commercial energy storage project. The project involves installing five Tesla Powerpacks to store energy during periods of low demand for use during peak grid times. TransAlta believes that energy storage systems like this will help encourage the creation of more wind and solar energy. "This is a major step forward in putting new technology to work in Canada," says TransAlta Lead Engineer of Technology Dan Chapman, "and Tesla is already a leader in this field." The project is expected to be up and running in late 2016. Read more from TransAlta. BMW and Nanyang Technological University in Singapore have launched an electromobility research program. In addition to the projects the joint Future Mobility Research Lab is already working on, (Advanced Battery, Driver Enhancement and Intelligent Mobility), the groups will also begin Electromobility in Asia and Smart Materials research projects. The Electromobility in Asia project focuses on how people interact with BMW's i cars, while the Smart Materials project seeks to improve touchscreens and interactive surfaces. BMW has provided the lab with an i3 and i8 with which to conduct research. Each partner is investing $965,000 into the new programs. Read more at Green Car Congress, and in the press release below. BMW Group and NTU embark on S$1.3 million electromobility research NTU receives BMW i3 and BMW i8 as research platforms Singapore. BMW Group and Nanyang Technological University (NTU Singapore) today launched a new electromobility research programme, involving the all-electric BMW i3 and plug-in hybrid sports car BMW i8 that runs on electricity and petrol.

Recharge Wrap-up: Automakers talk connected cars, Toyota's CNG hauler

Tesla, Toyota and General Motors addressed the House Subcommittee on Information Technology about the security and benefits of "The Internet of Cars." Tesla put forth four suggested security principles for the security of connected cars. Those include standard cryptography ("signing") used by automakers, measures to prohibit direct connection over the internet, isolation of a car's networked systems from its mechanical systems and standard encrypted communications protocols. Tesla VP of Business Development Diarmuid O'Connell also urged against "overly restrictive regulation." O'Connell says, "Regulation at a time of rapid innovation runs the risk of limiting the realization of the full extent of safety advances." See the hearing in the video above, and read more at Teslarati. Details over the rollout of new DC fast chargers by NRG eVgo and BMW leave some i3 owners disappointed. The partners will add 500 fast-charging sites to the eVgo network in 25 cities by the end of 2015. The "Fast Combo" chargers will be available to use for free for BMW i3 customers for 24 months. The free charging only applies to new buyers, though, leaving behind some 15,000 current i3 owners. Still, many EV drivers – not just BMW owners – will benefit from the ability to charge quickly in more places. Read more at Green Car Reports. Toyota has announced its first CNG car hauler. The automaker's in-house transport company, Toyota Transport, will operate the truck out of Long Beach, California. The truck, which Toyota says emits 85 percent less particulate matter and 10 percent less CO2, will drive about 7,000 to 8,000 miles per month. "We started exploring the CNG option more than three years ago, and it has been worth the wait," say Toyota Transport Compliance Senior Analyst Kirk Welch. "Natural gas is the cleanest burning fossil fuel and will help Toyota advance our environmental efforts to reduce fleet emissions." Read more in the press release below. Making Your New Toyota Run Cleaner Before You Even Start It Toyota's Latest Car Hauler Runs on Compressed Natural Gas November 23, 2015 TORRANCE, Calif. (Nov. 23, 2015) – Toyota Transport, the automaker's in-house vehicle transportation trucking company, now has its first car hauler that runs on Compressed Natural Gas (CNG). The Long Beach, CA based truck/trailer does what any other car hauler can do, except it does it while emitting 85 percent less overall particulate matter and 10 percent less carbon dioxide.