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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.

2016 Mercedes-Benz GLC live from Germany

The introduction of the Mercedes-Benz GLC at Hugo Boss headquarters outside of Stuttgart was another step in the evolution of brand cohesion at the Three-Pointed Star. The twin philosophies reshaping the company's products are "Sensual Purity," the brand's design language, and "Modern Luxury," the umbrella term for its wood-and-technology approach to interior splendor and driver assistance systems. That meant the GLK, already a contrarian in the segment thanks to its "interesting" look and cozy cabin, was an outcast in Mercedes' own SUV lineup. The GLC fixes that, for those of you who thought it needed fixing. Gone are the sharp creases and angles inspired by the G-Class, replaced by a the curves dictated by brand purity. To this writer, it looks like a smaller version of the new GLE. Which makes this corporate exercise another in a line of good-looking-yet-less-distinctive successes. Less confrontational outside, the GLC is downright inviting inside. The cabin that impressed us in the C-Class is equally impressive here, particularly when optioned with the Designo leather and open-pore wood. The rear quarters feel roomier than the additional 1.3 inches in legroom would make you think, and it's the same with the three extra feet of cargo space – there's a lot of room behind the rear seats. One thing to note: the hybrid (which we won't get initially) loses a fraction of that extra room with a slightly higher load floor over the batteries. Although it makes less visual impression outside, the G-Class hasn't been forgotten here. The godfather of the lineup is the reason for stressing the GLC's off-road capability. We don't really believe the GLC will need to pass any off-road exams – at least, not on purpose – but that's not the point. By including such capability, Mercedes establishes a concrete connection with its war-tested and thoroughly badass SUV halo, a connection that none of its competitors can make save for Land Rover. On that subject, due to different regulations, the US-market GLC will have slightly different bumpers; instead of the 31-degree approach angle and 25-degree departure angle other markets get, our model will allow a maximum of 28 degrees front and back. Those numbers put in the same off-road playground as the Range Rover Evoque.

Mercedes-AMG GT pressed into service as DTM safety car

DTM is one of the most competitive, fast-paced touring car series in the world. So to set the pace, the marshals need a pretty fast car as well. And that's just what they got with the new Mercedes-AMG GT pictured here. Marking its debut at the Lausitzring speedway this weekend, the AMG GT S safety car is based closely on the road-going model, but like the version that's already in use in Formula One, it's been modified for safety-car duty. That means a low-profile light bar mounted to a carbon-fiber air scoop on the roof – both tested in a wind tunnel – as well as the front splitter and rear wing from the optional Aerodynamics package, and the optional upgraded rolling stock. Inside it's got racing buckets, six-point harnesses, a flat-bottom steering wheel, and special radio equipment. Otherwise it's essentially the same as the road-going model, right down to the 4.0-liter twin-turbo V8 and seven-speed dual clutch transmission. After all, with 510 horsepower on tap, it ought to be able to stay out ahead of the 490-hp touring cars currently competing in DTM. The new safety car replaces the C63 AMG Black Series coupe that Mercedes previously contributed to the effort, and will alternate with the vehicles furnished by rivals Audi and BMW from race to race. Related Video: Mercedes-AMG GT S: new Safety Car for the DTM: From Formula 1® to the DTM Affalterbach. A new Safety Car celebrates its DTM premiere: at the second DTM race at the EuroSpeedway Lausitz (29 to 31 May 2015), the Mercedes-AMG GT S is set to be deployed for the very first time. The new sports car will help to ensure maximum safety on the race track in the world's most popular touring car series. In technical terms, the 375 kW (510 hp) eight-cylinder sports car is for the most part the same as the series production vehicle – just like its counterpart from the FIA Formula 1 World Championship™, the Official Safety Car. In its road-going guise the Mercedes-AMG GT S has turned heads since its market launch in March 2015 and now the sports car is also taking to the DTM stage. The new season of the German Touring Car Masters (DTM) got under way during the first weekend of May in Hockenheim. The second DTM race taking place at the EuroSpeedway Lausitz at the end of May will see the Mercedes-AMG GT S make its first appearance as the official Safety Car.