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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.

Lincoln Aviator backup camera failure spurs recall

Ford Motor Company has announced a recall of certain Lincoln Aviator SUVs to fix faulty rearview cameras. The recall is for 2020 and 2021 model-year Aviators. A total of 34,975 vehicles in the U.S. and another 3,053 in Canada and 379 in Mexico are affected. The image processing module can fail, resulting in the loss of the camera feed when in reverse. Ford says it knows of no accidents or injuries related to the defect. Owners of the affected Aviators will be notified beginning May 19. Dealers will update the software in the modules. In the meantime, Autoblog reminds drivers that if they experience backup camera failure, they can revert to the old-fashioned method of turning in their seat and looking out the back window when reversing. Auto News Recalls Lincoln SUV Luxury

Ford announces fix for 2021 Expedition and Lincoln Navigator fires

In the middle of May, Ford announced a recall of around 39,000 Ford Expeditions and Lincoln Navigators from the 2021 model year due to fires starting under the hoods of the SUVs. At the time, Ford had received 16 incident reports, 14 of them happening with rental vehicles. The automaker cautioned owners to park their vehicles outside and away from structures while engineers figured out what was happening and how to fix the problem. Since that May announcement, five more fires have been reported, four of them rental vehicles, and there's been one burn injury. The company announced it understands the problem and has a fix, at the same time widening the scope of potentially affected vehicles. Instead of recalling 39,013 units built between December 1, 2020, and April 30, 2021, the recall now includes 66,221 vehicles assembled from July 27, 2020, to Aug. 31, 2021. The suspected culprit is a circuit board provided by a supplier that changed manufacturing location during the pandemic. Ford's press release on the matter stated that "circuit boards produced at this facility are uniquely susceptible to a high-current short." The affected vehicles are fitted with either an 800-watt or 700-watt cooling fan system. About a third of the recalled population are fitted with the former, and should get a quick fix at the dealer. On these SUVs, techs will inspect the battery junction box. If they find evidence of melting, they'll replace the whole box. If not, they'll simply remove the engine fan ground wire that runs to the battery junction box; since this ground relay is redundant, the change doesn't alter operation of the fans.  Owners with the 700-watt system might need to wait until September for a fix. These vehicles need an auxiliary relay box with a wire jumper, but the parts aren't available now.   Ford's notifying all owners via the FordPass app, and will follow up with owners of the 700-watt cooling system once the parts are in stock. Until their vehicles are fixed, Ford says the SUVs are safe to drive but that they should still be parked outside and away from structures. The somewhat mixed messaging — 'Yes, your cars are safe to drive, but they could catch fire so don't park them near anything flammable' — encouraged a group of owners to file suit against Ford. Owners with questions can contact Ford customer service at 866-436-7332 and reference recall No. 22S36.