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E.U. executive conditionally approves Daimler, BMW car-sharing deal

BRUSSELS — The European Union's competition authority said on Wednesday it had approved the plan of German luxury carmakers Daimler and BMW to combine their car-sharing businesses, subject to conditions. Under the deal, which includes car-sharing units Car2Go and DriveNow as well as ride-hailing, parking and charging services, Daimler and BMW will each hold 50 percent stakes in a joint venture. They have offered concessions to address E.U. antitrust concerns over the deal they hope would let them better compete with U.S. rival Uber and China's Didi Chuxing. The European Commission has found the deal would raise competition concerns for free-floating car sharing services in Berlin, Cologne, Duesseldorf, Hamburg, Munich and Vienna. It said Daimler and BMW agreed to a remedy package in the six cities. "The commitments thus fully address the Commission's concerns as they will reduce the barriers to entry for competing free-floating car sharing providers," the Commission said in a statement. "Therefore the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The Commission's decision is conditional upon full compliance with the commitments." Reporting by Gabriela Baczynska and Philip Blenkinsop. Related Video:

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.

F1 Race recap: 2016 Russian Grand Prix same as it ever was

The three-year-old Sochi Autodrom that hosts the Russian Grand Prix combines beautiful scenery with a hallmark turn 3, a tricky turn 13, and two long DRS zones. So far, however, those haven't added up to exciting races after the first lap. Despite an in-race issue with his car's MGU-K, Mercedes-AMG Petronas driver Nico Rosberg aced the weekend with his first career grand slam: pole position, fastest lap of the race, leading every lap, and victory. Behind him, not much happened on the leaderboard after an incident-filled opening lap. The drama started at turns 2 and 3. Ferrari driver Sebastian Vettel lined up in seventh on the grid because of a five-place gearbox penalty, Red Bull's Daniil Kvyat sat next to him in eighth. Kvyat hit the back of Vettel's Ferrari in the braking zone for Turn 2, shoving Vettel into Daniel Ricciardo – Kvyat's teammate. Kyvat then clobbered the back of Vettel's car at the entry to Turn 3, spinning the German into the wall and out of the race. Kvyat probably regrets saying before the race that he would show Vettel "no mercy" on the first lap. At the back of the grid at Turn 2, Haas F1's Esteban Gutierrez hit Force India's Nico Hulkenberg and Manor's Rio Haryanto. Gutierrez continued, both the Force India and the Manor retired. A brief Virtual Safety Car period ensued, then the actual Safety Car emerged for three laps while marshals cleaned up the track. Mercedes-AMG Petronas driver Nico Rosberg nailed the restart and took off for the rest of the race. Teammate Lewis Hamilton battled his own gremlins all weekend but still finished second, 25 seconds behind Rosberg. During the final qualifying session on Saturday Hamilton's car suffered the same MGU-H failure as in China two weeks ago. The problem relegated him to tenth on the grid. In the race, Hamilton fought his way to second place by Lap 19 out of 53 laps and began closing the 13-second gap to Rosberg. On Lap 37, the gap now under eight seconds, Mercedes told Hamilton his car had a water pressure issue. The malfunction forced the Briton to manage his race and settle for second. Afterward, Hamilton said he was certain he could have won if not for the malfunction. The rest of the top ten barely changed throughout the contest. The first five positions on Lap 21 crossed the finish line in that order 32 laps later. Ferrari's Kimi Raikkonen took the final podium position ahead of the Williams duo of Valtteri Bottas and Felipe Massa.