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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.

Mercedes-Benz S-Class Cabriolet completes the luxury trinity

In its continuing bid to simply eat the lunch of the Bentley Continental GT, Mercedes-Benz has followed up on the S-Class sedan and coupe with a new S-Class Cabriolet. Aristocrats, take notice. Below the beltline, all is familiar. That means the same stylish sheetmetal, from the chiseled front fascia to the strong character lines to the pert rear end. Expect the cabin's accommodations to mirror the hardtop model. But the third member of the S-Class family differs above the beltline, where we see a sumptuous canvas roof. The three-layered top is, unsurprisingly, quite advanced. It uses a three-layer, acoustically optimized design that promises a quiet ride. The top can be dropped or raised in under 20 seconds and at speeds of 37 miles per hour. Finally, the addition of a canvas cover doesn't do much to the S-Class' aerodynamics, as the cabriolet still returns an impressive 0.29, which compares favorably with the 0.27 of the four-door model (the coupe's CoD isn't available). Opting for the S-Class Cabriolet will entitle you to some additional standard equipment, including Mercedes' AirScarf neck heater. The droptop will also pioneer the German brand's new Thermotronic climate feature, which takes complete control of the HVAC system and makes adjustments based on the findings of 12 sensors and 18 actuators. The sensors include those for interior and exterior temperature, solar radiation, air quality, and dew point, among others. Yes, your S-Class will have a sensor for the dewpoint. Also new to the S-Class Cabriolet – not to mention the S-Class line as a whole – is a 9G-Tronic nine-speed automatic transmission, which is already featured on the SLK-Class and the new GLC-Class. The new 9AT will be limited to the S550, while the new S63 Cabriolet will use the coupe's seven-speed AMG Speedshift transmission. Both engines, meanwhile, mirror their coupe counterparts, with 449 horsepower and 516 pound-feet of torque for the S550 and 577 hp and 664 lb-ft of torque on the AMG model, allowing the latter to hit 60 mph in just 3.9 seconds and reach a limited top speed of 186 mph. Both the S550 cabriolet and its Mercedes-AMG counterpart will make their global debut at the 2015 Frankfurt Motor Show, later this month. Read on for the full press release from Mercedes-Benz. The new Mercedes-Benz S-Class Cabriolet Open-top luxury Stuttgart. The new S-Class Cabriolet is the fourth variant of the current S-Class family in the U.S.

Mercedes moves R-Class production to AM General in Indiana

Go back a decade or two and you'd have seen the SUV market polarizing in opposite directions: hard-core off-roaders like the Hummer on the one hand, and passenger-focused crossovers like the Mercedes R-Class on the other. Now their fates are set to intertwine, at least as far as manufacturing is concerned. No longer producing Hummers, AM General (which designed and originally produced the Hummer) has been assigned the task of manufacturing the R-Class at its underused, 675,000 square-foot Commercial Assembly Plant in Mishawaka, IN – part of metropolitan South Bend. The decision was undertaken to allow Mercedes to free up production capacity at its plant in Tuscaloosa, AL, where it also produces the M-Class, GL-Class and C-Class, and where it will soon begin manufacturing the GLE Coupe. The vacation of the R-Class assembly line could be earmarked to make room for that new slant-roofed crossover (which was originally thought to be joining the Tuscaloosa plant as a fifth model) or could pave the way for another model to reach Alabama altogether. The multi-year arrangement to manufacture the R-Class makes AM General the first manufacturer contracted to build Mercedes-Benz vehicles in the US, but hardly the only one in the world. The G-Class – which could, incidentally, be characterized as the German equivalent of the Hummer – is built on Mercedes' behalf by Magna Steyr in Austria, and the company builds many of its passenger and commercial vehicles for local consumption under joint ventures in the Far East especially. The R-Class was first introduced in 2005, and though it's still built in America, it was removed from the company's US lineup back in 2012. However Mercedes confirms that, since 2013, it has been and remains available exclusively in China. That puts the R-Class in the rare position of being manufactured in the United States by (or now for) a foreign automaker but unavailable for sale here. AM General Selected As Mercedes-Benz First and Only Contract Manufacturer of Vehicles in the United States SOUTH BEND, Ind., Jan. 27, 2015 /PRNewswire/ -- AM General LLC and Mercedes-Benz U.S. International, Inc., today announced that Mercedes-Benz has selected AM General to manufacture the Mercedes-Benz R-Class luxury vehicle at AM General's world-class 675,000 square-foot Commercial Assembly Plant.