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Dealers mobilize to protect their margins from automaker subscription services
Fri, Aug 24 2018Six 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.
Updated Ford Expedition and Lincoln Navigator caught in new spy photos
Mon, Oct 26 2020Face-lifted Ford Expedition and Lincoln Navigator prototypes were spotted in the wild Monday wearing fairly extensive camouflage disguising updated bodywork for the 2022 model year. Ford's two body-on-frame offerings (BOFferings? Nope. Pretend that didn't happen.) are both due for a nip and tuck, and with GM's fresh slate of full-sizers now available, the timing couldn't be more perfect. There's not much we can discern from this Navigator prototype. The camo does a good job of masking whatever Lincoln has in store for the nose, but the tailgate has some discernible updates, including a significantly more pronounced recess for the license plate that also appears to be mounted higher on the hatch. This would likely indicate that the rear lighting scheme is getting an overhaul, as there doesn't appear to be enough room between the lower edge of the glass and the plate for the current scheme to be preserved. The Expedition, on the other hand, has quite a bit going on. For starters, this prototype is not sporting the chrome-and-polish look we've come to associate with these often-blingy SUVs. Instead, we see a set of Goodyear Wrangler all-terrains on what appear to be 18" wheels, which are positively dwarfed by the turbine-style wheels on the Lincolns. Leaning even harder into the off-road theme, this prototype is not wearing the scalloped front air dam seen on other Expeditions. While it may have been removed for testing purposes, its absence (or replacement) would certainly do wonders for the big SUV's approach angle. Elsewhere, we can see what appear to be a new set of tail lights, and it would be safe to assume based on the camo that we'll see new front and rear bumper treatments. We can also see a bit of the Expedition's interior, and there are quite a few things to note on this front. For starters, the prominent, vertically oriented infotainment screen takes after the Mustang Mach-E's unit. This is significant not only on spec, but also because it signals that the Expedition's interior will be departing more significantly from that of the F-150. Related Video:
Lincoln bringing in MKZ Hybrid over rollaway risk
Mon, 30 Dec 2013Federal safety standards require that every new car needs to have the brake depressed in order to shift it out of Park. But the National Highway Traffic Safety Administration has found fault in the transmission range sensor on certain examples of the Lincoln MKZ Hybrid, allowing the car to be shifted out of Park without first depressing the brake. The fear is that with this condition, affected vehicles may be unintentionally pulled out of Park, resulting in a possible rollaway. That safety concern has prompted parent Ford Motor Company to issue a recall.
The issue pertains to 7,153 examples of the MKZ Hybrid built between April 26, 2012 and September 24, 2013, covering the 2013 and 2014 model years. As a result, Ford will notify owners to bring their MKZs into their local Lincoln dealer to have the Powertrain Control Module software updated in order to rectify the problem. See the full recall notice below for details.
