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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.

Hennessey’s 600-hp Lincoln Navigator is here

The tuners at Hennessey have begun deliveries of the 2018 Lincoln Navigator HPE600, a full-size SUV that boosts the Navigator's normal 450-horsepower output to 600 hp, announcing its arrival with a video showing the performance 'ute riding a dynamometer. Hennessey said it was a natural decision to turn to the Navigator because it has mostly the same 3.5-liter twin-turbo V6 engine as the F-150 Raptor, which it converted last year to the 602-hp 6x6 VelociRaptor. So it added engine management computer software upgrades, a stainless steel exhaust system, high-flow air induction and large front-mounted intercooler with blow-off valve. Dyno results in the video show the Navigator topping out at around 500 hp and 500 pound-feet of torque at around 3,800 rpm at the wheels; Hennessey says the 600 hp comes at 6000 rpm. The upgrades are good to take the nearly three-ton SUV from 0-60 mph in 4.8 seconds, about 0.7 seconds quicker than the standard Navigator, and run the quarter mile in 12.9 seconds at 107 mph. The tuning package will set you back $19,950, including installation. Additional options include 22-inch forged monoblock wheels, lowered suspension and Brembo brakes with six-piston calipers and 15.1-inch brake rotors. There are also HPE600 badges on the front door jambs and tailgate, and embroidered headrests. It comes with a three-year, 36,000-mile warranty. Just 200 are planned for the 2018 model. You can order it now through Hennessey or any authorized Hennessey Lincoln dealer. Related Video: Image Credit: Hennessey Lincoln SUV Luxury Performance Hennessey tuner lincoln navigator tuning

Autoblog Podcast #414

Episode #414 of the Autoblog Podcast is here, and this week, Dan Roth, Steven Ewing, and Seyth Miersma discuss the new 2015 Shelby GT and go over the finer points of Elon Musk's recent speech during the Detroit Auto Show. Of course, the podcast starts with what's in the garage and finishes up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the rundown with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #414 Topics 2015 Shelby GT Elon Musk speech in Detroit In The Autoblog Garage 2015 Lexus LX 570 2015 Dodge Charger Pursuit 2015 Toyota Prius C 2015 Lincoln Navigator Hosts: Dan Roth, Steven Ewing, Seyth Miersma Runtime: 01:17:58 Rundown Intro and Garage - 00:00 2015 Shelby GT – 32:41 Elon Musk – 41:33 Q&A - 54:48 Get The Podcast UStream – Listen live on Mondays at 10 PM Eastern at UStream iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Feedback Email – Podcast at Autoblog dot com Review the show in iTunes Podcasts Dodge Lexus Lincoln Toyota toyota prius c shelby lincoln navigator lexus lx