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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.

BMW reclaims US luxury sales crown from Mercedes

The numbers, they are in: BMW has reclaimed the luxury-sales crown from Mercedes by a margin of 9,347 cars. Mercedes donned the king's headgear in 2013 after a strong final quarter of 2013 when the new CLA and S-Class poured out of dealerships. This year, led by the 3 Series/4 Series and X5, BMW sold 339,738 units – a 9.8-percent increase year-on-year. Mercedes, led by the C-Class and M-Class, saw its sales go up by 5.7 percent to 330,391 units. We'll have to wait a bit to see if there's another registrations-vs-sales challenge as in 2012, when BMW was anointed US luxury ruler. Behind them, a dark horse named Lexus nudged closer to the leading Teutons, selling 311,389 cars. The Japanese luxury automaker also had the biggest gain among the top three, its sales rising by 13.7 percent compared to 2013. Audi had the biggest sales of anyone among the top five, though, with a 15.2-percent gain to 182,011, which moved it a spot ahead of Cadillac; the Wreath-and-Crest brand dropped 6.5 percent to 170,750. Acura (167,843), Infiniti (117,300), and Lincoln (94,474) took the final positions. Speaking of Lincoln, sales at the once-mighty luxury marque stand as the mightiest jump of any on this list, up 15.6 percent. That's the power of Matthew McConaughey... and better cars and a new crossover, sure. So now that we're back to Round One of 2015, in case no one else has said it yet: "Ok, fight!"

Lincoln Sync 3 Infotainment Review | Clean and eminently usable

Many of the newer Lincoln products might be vastly different in design and experience than their Ford counterparts, but infotainment software is still heavily shared between the two brands. That said, Lincoln has made a great effort to make its version of Sync 3 feel more upmarket and premium compared to Ford’s. If you can think of it in terms of Android smartphones, Sync 3 in Ford vehicles is like stock Google software. Sync 3 in Lincoln products is akin to SamsungÂ’s UI, which amounts to a totally new look and added features. The core interface remains the same across the two brands. LincolnÂ’s snazzy new look can be customized with a few different color combinations, but they generally all consist of muted tones that exude old-world luxury more than the heavy-handed blue hues on Ford's version of Sync. One convenient commonality between the two is Apple CarPlay and Android Auto capability, both of which require wired connections. Some may find the functionality of the Apple/Android interfaces to be compromised as detailed in our Ford Escape interior driveway test). Sync 3 has a bottom bar of quick toggle, commonly-used apps, and a Home button in the top left corner. It makes getting to any particular set of menus quick and painless. Squared-off icons are used within menus with large font and intuitive scrolling functionality. There are no redundant scroll wheels or touchpads to control the screen interface in any of LincolnÂ’s vehicles, so youÂ’ll need to be comfortable with a touchscreen. Thankfully, there are hard buttons on the dash for the climate controls and common audio functions.  Lincoln Sync 3 Infotainment View 10 Photos In the Lincoln Navigator weÂ’re using to demonstrate the technology, Sync 3 is smooth and generally free of hiccups. However, itÂ’s not infallible and tablet-smooth as plodding through BMWÂ’s or MercedesÂ’ latest infotainment systems is. Lincoln uses Sync 3 on all of its current models, and in the Navigator, itÂ’s playing on a large 10-inch screen. The added luxury features for Lincolns tends to dictate all of the extras you see in the software. There are settings for a vast array of ambient lighting, hugely complex seat controls (for the 30-way massaging seats) and a number of customization options for the excellent Revel audio system (optional). Lincoln differentiates itself even further with the fully digital instrument cluster flanking the big screen.