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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.

2014 Cadillac CTS starts $7k higher than last model at $46,025*

The redesigned 2014 Cadillac CTS will be more powerful, stylish and luxurious than its predecessor, but it will also be much more expensive. With a new starting price of $46,025 (*including $925 for destination), the 2014 CTS represents a price increase of more than $7,000 compared to the 2013 model, but it should be more appropriately sized and equipped to take on rivals like the BMW 5 Series and Mercedes-Benz E-Class, which start at $47,800 and $51,900, respectively.
Available trim levels - referred to as Collections - include Luxury, Performance and Premium, offering either a 2.0-liter turbocharged inline four-cylinder or a 3.6-liter V6 and the choice of either rear- or all-wheel-drive configurations. For more performance, the all-new CTS Vsport model will have an asking price of $59,995. This 420-horsepower model is more powerful than both the BMW 550i and Mercedes E550 and about $2,000 less expensive than both.
There's still no word on what Cadillac has in store for a next-gen CTS-V sedan, but we're guessing power and price will both rise considerably. Scroll down for more info on the 2014 CTS that is set to go on sale this fall.

Buy a Mosler Twinstar, the V16 Cadillac you almost wanted [w/video]

Cadillac was once famous for opulent, V16 luxury vehicles, but this bizarre 16-cylinder 1999 Eldorado that's for auction on eBay Motors isn't much like its ancestors. Dubbed the TwinStar, this beast features a Northstar V8 with 275 horsepower to drive the front wheels and a second Northstar with 300 hp is in the trunk to spin the rear axle. Each mill has its own four-speed automatic gearbox, and the result is a total of 575 hp of all-wheel drive fury in an incredibly weird package. The TwinStar's interior and exterior certainly don't hide the odd powertrain setup. To fit the engine in the trunk, the builders pushed the rear wheels further back and lengthened the wheelbase. There are also scoops low on each side to funnel air to the V8. Inside, there's a second ignition on the side of the center stack, and a digital instrument cluster replaces the glove box. It's sure to confuse any passenger you can convince to take a ride in this thing. Mosler, the supercar company known for models like the MT900, built five TwinStars, according to the auction. The seller links to the original review by Car and Driver, and the magazine noted that the sensation of the two engines working in tandem was rather odd. However, the TwinStar was a capable performer and ran to 60 in 5 seconds in its test. If you want to start your new year with the oddest vehicle possible, the TwinStar's auction sits at $5,600 with the reserve not met as of this writing, and it ends January 2, 2016, at 8:00 PM ET. If you can't wait that long, the dealer lists the car online for $39,900. There's also a spirited conversation on Bring a Trailer about this automotive oddity.