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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.

Ford issues recalls for Fiesta, Fusion, E-Series, and Lincoln MKZ

Ford has issued two new safety recalls for North America. The first covers certain 2014-15 Ford Fiestas, 2014-16 Ford Fusions, and 2014-16 Lincoln MKZs with doors that might not close properly. The second pertains to 2021 Ford E-Series stripped chassis and cutaway vehicles with a wiring harness that might chaffe and expose important wiring.    Ford is recalling 268,343 Fiesta hatchbacks, Fusion sedans, and MKZ sedans across the United States, Canada, and Mexico, with 248,912 of the affected vehicles located in the U.S. The recall says the "latch pawl spring-tab design" could crack in locations where the temperature gets too hot. If the tab breaks, the door might not shut. Or, worse, the door will shut temporarily and reopen once the vehicle is in motion. As a fix, Ford dealers will remove and replace the side door latches. In a separate recall, Ford is targeting 3,631 2021 E-Series stripped chassis and cutaway vehicles. These vehicles could have frame-mounted wiring harnesses that could deteriorate and break due to rubbing on the frame. If the chaffing wears down the harness, wiring for the fuel, trailer tow, and antilock braking systems could be exposed and damaged. In the worst-case scenario, the damage to the fuel pump wiring could cause the pump to stop working, which could stall the vehicle.  Those with affected E-Series vehicles should bring them in to dealerships for inspection. If there is no damage, technicians will add anti-abrasion tape over the area and "ensure clearance to surrounding components." If the harness is damaged, the wiring will be spliced and fixed, then anti-abrasion tape will be added. Ford also issued a third recall, but it is specifically for the Canadian market. On 54,292 examples of 2006-10 Ford Fusions, 2006-10 Mercury Milans, and 2006-10 Lincoln MKZs, a valve inside the hydraulic control unit might stick open. According to Ford, this could result in a longer brake pedal travel, which could possibly create dangerous situations if the driver is unaware. Dealerships will inspect the control units and replace those that are defective. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2021 Ford Bronco and Bronco Sport Leaks!!

2017 Lincoln Model Year Preview and Updates

For those wondering if there's more to Lincoln than a reflective Matthew McConaughey, the debut of Lincoln's all-new Continental - pictured above - should emphatically answer the question. But aside from a refresh here and there, the Continental is effectively 'it' for the 2017 model year. LINCOLN CONTINENTAL: Although the new Continental may not represent the design stretch Lincoln enthusiasts might have hoped, it's a significant step when compared to the Fusion-based MKZ or displaced MKS. With available all-wheel drive and up to 400 horsepower and 400 pound-feet of torque, the Continental is described by Lincoln as targeting 'culturally progressive clients who define luxury on their own terms.' In short, this isn't a me-too interpretation of German or Asian luxury; it's the Lincoln Motor Company's interpretation of American luxury, on sale in the spring of '17. MKZ: A freshened design with all-new, Continental-esque front fascia offers an upgraded interior, new technology and available Revel Audio. MKC: It is a year of minor tweaks for Lincoln's compact crossover. A power liftgate is now standard, while Auto Start-Stop is available on MKCs equipped with the 2.0-liter and all-wheel drive, standard on 2.0-liter front-wheel drive. And the MKC receives Sync 3 plus Apple CarPlay and Android Audio. MKT: Aside from color revisions, Lincoln's livery car/crossover is unchanged. MKX: Lincoln's midsize, Edge-based crossover receives little more than color changes for 2017. NAVIGATOR: Lincoln's biggest SUV navigates the model year with few changes except for color. However, with the announcement of an all-new Ford Expedition – on which the Navigator is based – in showrooms this fall, an all-new Navigator can't be far behind it. Lincoln Car Buying whats new 2017