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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.

2014 Mercedes-Benz SLS AMG Black Series [w/video]

The biggest misconception about the Mercedes-Benz SLS AMG Black Series is that it's simply a higher-performing version of the SLS GT - a closer look, or better yet, a few hot laps on a high-speed racing circuit, reveals that is anything but the case.
Launched in the States in mid-2011, the standard SLS GT is a 583-horsepower, all-aluminum, gull-wing coupe with performance that positions it near the top of the exotic segment. While the AMG team at Mercedes-Benz could have left it alone, their experience with the SLS AMG GT3 race car said there was room for improvement, so they devised the SLS Black Series. The transformation from SLS GT to SLS Black Series is extensive, with no fewer than 17 different significant enhancements.
The engine mapping, crankshaft, connecting rods, valve-train, intake, exhaust and cooling are all modified and the engine's redline bumps up from 7,200 to 8,000 rpm, which pushes output of the hand-built 6.3-liter V8 to 622 horsepower. The power steering receives a new ratio, a coil-over AMG Adaptive Performance suspension is installed along with underbody braces, the track is widened, two-piece carbon-ceramic brakes replace iron rotors at each corner and a lightweight titanium exhaust is fitted beneath. The AMG Speedshift seven-speed dual-clutch gearbox is modified and an electronically controlled AMG rear differential lock ensures the power goes to the pavement. Last on the mechanical upgrades are new lightweight forged wheels (10x19 inches front and 12x20 inches rear) wrapped in special R-compound Michelin Pilot Sport Cup tires.

2016 Mercedes-Benz Metris First Drive

We're sitting 8,700 feet above sea level in the idyllic old mining town of Dunton Hot Springs, nestled deep in the Rocky Mountains of Colorado. We've come to drive the newest and cheapest Mercedes-Benz, a midsize work van called the Metris. As the day begins, Mercedes van boss Bernhard Glaser states the obvious, "We're setting up camp in the US." It's a good line, perhaps a little too fitting given our surroundings, but it's accurate. Though the US commercial van market is dominated by Ford and General Motors, Mercedes has staked out a competitive position and is digging for more. The tall, capable Sprinter relaunched with a Mercedes badge in the United States in 2010 and has grown into a $1-billion enterprise in America. Now comes Phase 2, dubbed "Mission Metris," starring a tweener van that's smaller than the towering Sprinter yet larger the Ford Transit Connect and Nissan NV200. The 2016 Metris enters a crowded and evolving segment that also includes the Ram ProMaster City and GM's super-old Chevy Express and GMC Savana. Mercedes will sell the Metris in cargo and passenger forms, meaning it will be outfitted for a range of roles, including taxi and limousine companies, delivery duties, service, and maintenance. Yes, your cable guy might show up in a Mercedes. That's part of the plan, actually. Though the Metris was engineered to be a pack-mule of a van, if the shine of the star on its grille helps attract new buyers – like a chain of upscale hotels that needs a fleet of shuttles – all the better. Our short test drive begins outside the small canyon town of Dolores, CO, as we haul four people and some luggage to the airport in a pre-production Metris. Normally test programs staged by automakers are a little contrived – many feature an off-road course or track time for even the most mundane vehicles – but our stint behind the wheel of the Metris is almost exactly how the van could be used in real life. We make our way along Colorado's winding highways, cruising around 60 miles per hour for much of it. The Metris offers an excellent view of the road and the snow-capped mountains that rise in the distance. It's an easy van to drive. We don't feel like we're piloting a U-Haul or something else cumbersome. Mercedes is billing this as the 'right-sized' option, and our initial impressions support that sentiment as we navigate the curves flanked by steep drop-offs.