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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.

2020 Cadillac CT5-V First Drive | The lowercase v series

PALM SPRINGS, Calif. — This isnÂ’t the Cadillac CT5-V we were expecting. After years of successively higher horsepower and world-beating performance statistics, Cadillac flipped the script with the CTS-replacing CT5 by making the reborn carÂ’s first V-badged sedan a middle performance tier that will slot below a new model that hasnÂ’t yet been released. The outgoing CTS-V pounded the pavement with 640 horsepower; the CT5-V weÂ’re discussing here offers up a seemingly paltry 360 ponies. The CT5Â’s styling aligns with recent models like the XT4, XT5, XT6 and CT6, but is another major departure from the CTS it replaces. The automakerÂ’s abandoned Art and Science design philosophy culminated in a CTS that looked modern and distinctive. Crisp lines, clean edges and sharp features have given way to the CT5Â’s more flowing sense of style, and with the exception of its gracefully curved pseudo-fastback greenhouse that results in an unfortunately awkward C-pillar transition, itÂ’s right on the border of blending in instead of standing out. As you would expect, the CT5-V has a more aggressive look than other CT5 models. Bits that are bright on the standard car are blacked out on the V, and the sportier car has a more chiseled front face with a mesh grille that flows more air than if it were just wide open. Similar changes are seen in the cabin, where the V replaces wood trim with carbon fiber. WeÂ’d prefer some other trim options in the V, like maybe brushed aluminum, since the monochromatic dark leather with dark trim leads to — you guessed it — a starkly dark interior. Cadillac has a brand-new infotainment system that will be launching soon in the upcoming Escalade SUV, but the CT5 sticks with the brandÂ’s oft-maligned CUE. As much as customers and journalists like us have complained about CUE, the latest (and likely last) version found in the CT5 works pretty well. All the necessary functions are easy to find, and the touchscreen is quick and responsive. And if you really donÂ’t like the interface, there are physical buttons for the climate control and a pair of dials for audio. An available rear camera mirror offers a wider field of view, or can be used as a regular mirror. Forward collision alert, automatic braking and pedestrian detection are standard. A 360-degree camera system, adaptive cruise control, automatic parking assist and rear auto braking are available.

Junkyard Gem: 1967 Cadillac Fleetwood Sixty Special Sedan

If you lived in North America in 1967 and you wanted to show the neighbors you'd clawed your way to the peak of the success pyramid, only one car would do: Cadillac Fleetwood. Today's Junkyard Gem is 4,685 pounds of General Motors luxury hardware, finally knocked off the road at age 53 by an unfortunate wreck and now residing in a Denver self-service wrecking yard. The Cadillac brand endured some rough years during the 1970s and 1980s, but rode high during the 1960s. The Fleetwood Sixty Special Sedan started at $6,423 in 1967, or just over $50,000 when figured using inflation-adjusted 2020 dollars. A Mercedes-Benz 250SE sedan set you back $6,385 that year, but it weighed barely half as much and packed just 148 horses against the Cad's 340. Really, you had to get a genuine Rolls-Royce to out-swank the Fleetwood-driving Joneses back then (the Lincoln Continental and Imperial didn't have quite the snob appeal at that time), and the Roller cost more than several Fleetwoods combined. This car has been around during its long life. On the windshield, we see 1980 and 1981 parking stickers from the Keeneland Club in Kentucky. This car was already 13 years old by that time, but still very classy. At some point, the car must have migrated to California. Here's a U.C. Berkeley sticker. This ancient In-N-Out sticker comes from the Southern California-only era of the famous hamburger chain. Sometimes it's tough to determine the reasons that an old car ended up in a place like this, but that's not a problem here. Let's hope the car's occupants had their belts on (lap belts only in 1967, but still better than nothing), because these old Detroit land yachts didn't have much in the way of energy-absorbing crumple zones. The paint and interior are quite rough, so this car depreciated from being worth perhaps a couple of grand to scrap value in an instant.  Cruise control was a very rare option in 1967, and this car has it. The famous Fleetwood triple-tone horns were still there when I got to this car. Under the hood, 429 cubic inches (7.0 liters) of super-smooth Cadillac pushrod V8. This engine grew to 472 and then 500 cubic inches during the following few years. The paint shows some great patina. Did I buy the horns? Of course I bought the horns — I always bring my trusty lightweight junkyard toolbox when I head out to shoot some Junkyard Gems. Related Video: