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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

Submit your questions for Autoblog Podcast #311 LIVE

We record Autoblog Podcast #311 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Also for episode #311, Dan, Zach and Autoblog Editor-in-Chief John Neff chatted with Dan Greenawalt, Creative Director of Turn 10 Studios, about Forza Horizon. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
Discussion Topics for Autoblog Podcast Episode #311
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Ford applies to trademark term 'Lincoln eGlide'

There's an epilogue to Ford's recent announcement that it's giving up on a battery-electric Lincoln co-developed with Rivian. The MachEClub forum discovered that just a week ago, Ford applied with the U.S. Patent and Trademark Office to trademark the term "Lincoln eGlide." The goods and services category details use for "Motor vehicles, namely, passenger automobiles, sport utility vehicles, electric vehicles and structural parts and fittings; electric vehicles, namely, passenger automobiles, sport utility vehicles, and structural parts and fittings." Living in an age where a small "e" is shorthand for "electric," and Ford having specified electric vehicles in the patent, the go-to guess is that this is for an electric vehicle. The inclusion of non-electric motor vehicles injects a little fuzziness. Tesla's trademark on the Model S specifies "electric automobiles" only, whereas Rivian's trademark for the R1T seeks coverage for "land vehicles" and just about every part found in or on a land vehicle.   Since Ford must have known about the end of the Rivian effort when it applied for the trademark, we suppose Lincoln has got some kind of eGlide coming no matter what. Lincoln refers to the theme of its latest cabin designs, as in the Aviator and Corsair, "Quiet Flight," and the road-scanning adaptive suspension on the Lincoln Aviator is called "Air Glide," neither term being trademarked. This leads our suspicions to eGlide becoming a vehicle component that could potentially serve a model with any powertrain, not necessarily battery-electric only, and eGlide won't be the name of the Lincoln EV that Ford says is still on the way. Another clue is that Ford included the word "Lincoln" in the term. Trademarked vehicle names such as Aviator and Corsair don't include the make, but services for vehicles do, such as the trademarks for Lincoln Connect and Lincoln Co-Pilot 360. We'll admit that a little bit of hope informs this line of thinking as well. Ford having done Lincoln the fabulous service of giving Lincolns terrific names, we'd be aghast if the Corsair and Navigator had to share showroom space with an eGlide. We've no choice but to wait for a retail product to provide answers. In the meantime, if we could just get to the bottom of this "Fastor Charge" trademark, and what's this bit about "Vandemonium?"   Related Video: