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Cadillac, Daimler execs take swipes at Tesla

Despite the financial ties between Daimler and Tesla Motors, at least one Mercedes exec thinks the electric automaker doesn't have a bright future. And over at Cadillac, the message is that Tesla doesn't pose a threat but offers the luxury arm of General Motors more of classroom experience. The Mercedes story runs like this. Mercedes-Benz USA president and CEO, Steve Cannon, said at the New York Auto Show last week that Tesla has "no network" and only offers "little shops that don't have service capacity." He also said: "Folks are buying a Tesla now because they're kind of cool, but if you're a Tesla buyer, you have to have multiple cars. With Mercedes, you have a whole network. You've got no worries. ... Tesla is great, but you've got plenty of well-established brands that mean luxury, like Porsche or Mercedes-Benz, and how long do you think we're going to wait and let Tesla be out there alone [selling premium electric cars]?" "Treehuggers do not buy new luxury cars" – Uwe Ellinghaus For Cadillac's global chief marketing officer, Uwe Ellinghaus, Tesla's EV success represents little other than "a great opportunity and a learning exercise for all of us, and will help us traditional manufacturers to think twice about electric mobility." He added that, "I am not afraid of Tesla. ... There is no willingness to really sacrifice on the traditional qualities of a luxury car. These are not cars for treehuggers, as treehuggers do not buy new luxury cars." Ellinghaus made the comments during a panel discussion at the 2014 Automotive Forum. Perhaps the lesson of Tesla's offer of free Supercharging to Model S owners is what led to Cadillac to recently announce a deal with Chargepoint that gives ELR drivers access to that company's 16,500 charging stations. Read more details on that below. Cadillac and ChargePoint Bring EV Customer Luxury Driving Experience World's largest, most open electric vehicle charging network available to ELR drivers 2014-04-16 NEW YORK – Cadillac today announced a partnership with ChargePoint, the largest and most open electric vehicle-charging network in the world. The collaboration brings Cadillac ELR drivers immediate access to more than 16,500 charging locations on the ChargePoint network. The ELR electrified luxury coupe went on sale at the end of 2013. It embodies Cadillac's Art & Science design philosophy, combining provocative design with progressive technology.

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 one-ups old GLK in every way

Meet the Mercedes-Benz GLC-Class, the latest in the automaker's increasingly impressive run of new or significantly updated (and occasionally renamed) vehicles that's included the immensely good C- and S-Class, and the upcoming GLE-Class – formerly known as the M-Class crossover. Unlike the GLE, which you'll be reading our First Drive on shortly, the GLC is much more than a mid-cycle refresh, representing the second-generation of Mercedes' compact crossover. While it represents a more significant update to the former GLK than the GLE does to the ML, the new GLC shares its looks with the larger vehicle. It's a handsome take on Mercedes' latest design language, featuring a similar rectangular, two-slat grille in the fascia. The greenhouse has hints of C- and S-Class in it, and is the best way of viewing the 4.6-inch stretch to the wheelbase. The taillights, meanwhile, take their inspiration from the S-Class Coupe and AMG GT. The new cabin isn't just prettier, it's more spacious, too. The C-Class and S-Class also serve as inspiration for what is a remarkably attractive cabin. While Audi has long served as the standard for interior design, with the C, S, and now the GLC, Mercedes can stake a claim to Ingolstadt's crown. Like the C-Class, the center stack is a wide, curving design that terminates in the controller for the infotainment system, while a tablet-like display sits up high. Leather, wood, and aluminum cover most every surface we can see in the initial batch of photos, while cool, blue accent lighting adds an extra dose of style. The new cabin isn't just prettier, it's more spacious, too. Thanks to the longer wheelbase, there's an extra 2.2 inches of space for second-row passengers. There's more room for cargo, too. Mercedes claims 20.5 cubic feet – non-SAE, it should be noted – behind the second row, up from 16.5 in the current GLK. While the GLC will be offered with a range of gas and diesel powertrains, US consumers will be offered the GLC300 first. Counterintuitively and like the C300, the entry level CUV uses a 2.0-liter, turbocharged four-cylinder engine with 241 horsepower and 273 pound-feet of torque. While we expect 4Matic to be the popular option, Mercedes will also offer a rear-drive-only model. There's no mention of additional powertrains beyond the launch model, although we'd expect the GLC to follow the C-Class' example and add a GLC400 powered by a 3.0-liter, twin-turbocharged V6.