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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.

Question of the Day: Worst year of the Malaise Era?

The Malaise Era for cars in the United States spanned the 1973 through 1983 model years, and featured such abominations as a Corvette with just 205 horsepower (from the optional engine!) and MGBs with suspensions jacked way up to meet new headlight-height requirements. There were many low points throughout this gloomy period, of course. The horrifyingly low power and fuel-economy numbers for big V8s during the middle years of the Malaise Era make a strong case for 1974 or 1975— the years of Nixon's resignation and the Fall of Saigon, respectively— as the most Malaisey years. But then the GM-pummeling debacles of the Chevy Citation and Cadillac Cimarron could make an early-1980s year the low point. 1979, the year of the ignominious Chrysler bailout? You choose! Related Video:

Blackwings, a G 63 gets dirty and a wave of rad-era nostalgia | Autoblog Podcast #693

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Byron Hurd, who has spent the past few weeks sampling a near-endless string of enthusiast vehicles. They start off discussing Cadillac's 2022 CT4-V and CT5-V Blackwing models, which Byron had the opportunity to drive at Virginia International Raceway. They follow that up with a discussion of the Mercedes-Benz AMG G 63, which Byron also drove on a track, albeit one of a very different sort. After that, some news. Greg and Byron run down the list of returning enthusiasts nameplates, including Integra, Z and Countach, and cap off by talking about what a third-generation Acura NSX might look like.  Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #693 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown What we're driving 2022 Cadillac CT5-V Blackwing First Drive 2022 Cadillac CT4-V Blackwing First Drive 2021 Mercedes-AMG G63 Off-Road Review News Mercedes shelves almost every V8 model for 2022 There will be a third-generation NSX, says Acura V.P. Lamborghini Countach LPI 800-4 revealed, basically a retro Sian 2023 Nissan Z is revealed with two turbos, 400 horsepower and six manual gears Acura Integra will return in 2022 after a long hiatus Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related Video: 2021 Mercedes-AMG G63 Off-Road Review -- The Forbidden Hoot | Autoblog