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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 XT4 Sport Drivers' Notes | Worth a look, or two

The 2020 Cadillac XT4 is Cadillac’s smallest crossover in its burgeoning lineup of SUVs. Most of the attention is on the new Escalade these days, but the XT4 is where someone with a lighter budget might enter the Cadillac brand. Our tester happens to be the Sport model, giving it a distinctive appearance, separate from the Luxury and Premium Luxury trims. This one has a gloss black mesh grille, black trim throughout the exterior and Sport-specific wheels — the others rely much more heavily on chrome. Cadillac stepped it up in the design studio for the XT4, as one of its best qualities is the exterior design. It compares well to other small crossovers and doesn't look like your typical cookie-cutter crossover on the road. ThereÂ’s only one engine available, and itÂ’s a 2.0-liter turbocharged four-cylinder that makes 237 horsepower and 258 pound-feet of torque. When the XT4 came out for the 2019 model year, this engine was brand new. Today, Cadillac is passing it around the lineup to vehicles like the CT5 and CT4. A nine-speed automatic transmission is the only transmission option, as well. Our tester has all-wheel drive, but front-wheel drive is standard on lesser XT4s. There isnÂ’t a whole lot changed for the 2020 model year, but Cadillac did add an “Off Road” mode and made a bunch of safety equipment standard. With our test car being a Sport trim with all-wheel drive equipped, the base price is $42,295, a fair bit greater than the $36,690 standard car. After options, our XT4 totaled $48,310. The most expensive extra is a $1,500 Bose Centerpoint audio system, combined with navigation. An $1,100 Driver Assistance package brought adaptive cruise control, enhanced automatic emergency braking and reverse automatic emergency braking. A Cold Weather package added heated seats all around and a heated steering wheel for $850. Finally, the $470 Driver Awareness package brought automatic high beams and lane-keep assist. Senior Editor, Green John Beltz Snyder: This one grew on me the more I drove it. I was unconvinced for the first part of my drive, but then things started to feel more well-though-out as I used them. For instance, the line of buttons across the center stack looks daunting, until you turn the car on and their labels are illuminated. Then everything is easy to find thanks to the lighting, symmetry and the fact that you only have to look down a single line of buttons rather than hunt around a grid pattern.

Autoweek divulges details on Presidential limo

Ever since the latest presidential limousine, also known as The Beast, debuted in 2009, we've wondered what's underneath that black Cadillac body. We already know a few details, like the fact it isn't a Cadillac at all, but a very heavy duty truck chassis from General Motors with a body that resembles a super-sized Caddy. Autoweek, however, has managed to extract new details from veteran Secret Service agents about the closely guarded presidential limo. Their methods, of course, are classified.
Designed to be a rolling office, bunker and escape pod all in one, the current presidential limo is far different from previous presidential state cars, which were heavily modified production vehicles. As we would expect, The Beast uses thick, military-grade body armor (eight inches on the doors), an armored fuel tank, special run-flat tires with Kevlar lining, an encrypted satellite phone, a fully sealed cabin with its own oxygen supply and a trunk full of weapons and medical equipment that includes a supply of the President's blood type (in case the car gets cut off from the ambulance that's always present in the President's motorcade).
The Beast also comes with a Halon fire-suppression system, night vision and is powered by a V8 engine, which we already knew runs on gas and not diesel, that returns an EPA-unfriendly estimated 3.7 miles per gallon. The Secret Service operates a fleet of 12 limos and each Beast costs $1.5 million. Lastly, AW estimates that the 18-foot-long state car weighs 15,000 pounds, and each Secret Service agent that drives the car must be specially trained to maneuver such a massive vehicle.