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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 testing C-Class plug-in hybrid modes in Germany

Testing appears to be underway for what would be the first Mercedes-Benz C-Class with a hybrid powertrain. We can see a pair of the prototypes undergoing testing in Germany, with one, a C-Class Wagon, still heavily clad in camouflage and featuring a more noticeable outlet on the passenger side of its rear bumper.
There's also a more production-looking sedan, which features a not-so-discreet flap over its rear-bumper outlet. It's difficult to speculate on power outputs for this fuel-sipping C-Class, although our spies seem to think that this car will feature some combination of a four-cylinder gas engine with an electric motor, although just which four is unclear (note, we wouldn't mind if MB fit its 2.0-liter turbo with some batteries and motors). Regardless, the four-pot/electric motor seems like a pretty reasonable combo, although it probably means that Mercedes won't be challenging the six-cylinder-powered system of the BMW ActiveHybrid3 any time soon.
When the plug-in C-Class arrives later this year as a 2015 model, it will likely offer a full range of driving modes, including both gas or electric, only, as well as a more traditional hybrid mode.

2015 Malaysian F1 GP springs hot, humid surprises [spoilers]

In the two weeks since Australia both Mercedes and Ferrari spoke of the improved performance from their respective cars. In Malaysia, Ferrari showed it. Lewis Hamilton still put his Mercedes-AMG Petronas on pole position, but Sebastian Vettel got within two whiskers of the Brit, lining up second just 0.074 behind. Afterward, Vettel said Ferrari could win the race if everything went well. But in qualifying we didn't know how much of Ferrari's performance was truly down to the car and how much was down to the wet weather that struck near the beginning of Q2. The rain didn't hamper Nico Rosberg's run – the German said "I just didn't drive good enough" – and he took third spot in the second Mercedes-AMG Petronas. Showing what the Infiniti Red Bull Racing chassis can do when the power unit is working properly, teammates Daniel Ricciardo and Daniil Kvyat grabbed fourth and fifth. Whippersnapper Max Verstappen, in his second race, qualified in sixth with an excellent drive through the rain; just 0.030 behind Kvyat, he said he could have got fifth if he hadn't had a running problem with his brakes. Williams head of vehicle performance Rob Smedley said he wouldn't complain about Mercedes' advantage, but Felipe Massa has spent the whole season so far banging the alarm about Ferrari's pace. He says Williams has lost its straight-line advantage, part of the reason the first Grove car is back in seventh, while Valtteri Bottas is in eighth. Between them was Romain Grosjean in the Lotus, but he got dropped two positions for a pit-lane infraction in Q2, so he'll be tenth. Ahead of him is Marcus Ericsson in the Sauber, who would lead the charge to turn in another surprise for the Swiss team. But the real surprise came from the Scuderia Ferrari, who, on a bright, sunny day proved that they don't need to add water for race-winning pace. While Hamilton got made usual awesome start at the lights, Vettel channeled that other famous German Ferrari driver and immediately cut across the track to intimidate Rosberg, maintaining his second place position into the first turn. Arguably the race-winning move came three laps later at that same turn, when Ericsson plunged in too fast and swapped ends, beaching the rear of his Sauber in the gravel trap. The safety car came out when the recovery truck emerged to retrieve the Sauber, and nearly all of the front-runners took to the pits to swap out of the medium tires. Vettel, however, didn't.