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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.

Porsche would have entered F1 if Audi had blocked its Le Mans program

Go back a few years and you may have heard rumors of Porsche heading into Formula One. That never came to pass - or at least, it hasn't yet - but that doesn't mean that it wasn't close to happening. That's how committed to returning to top-level motorsport competition Porsche has become recently.
Autosport reports that just as Porsche was merging fully into the Volkswagen Group, Zuffenhausen was weighing its options for a factory racing program. Le Mans was its favorite, which makes sense, as it remains far and away the most successful constructor in the history of the famous endurance race. But the strategists at Porsche were worried that its new corporate overlords at Volkswagen wouldn't support two LMP1 programs and would favor Audi, which has positively dominated the modern era of endurance racing, coming second only to Porsche in the number of Le Mans victories it has scored to date.
Porsche's Plan B was reportedly to head into Formula One, although it isn't clear if the German automaker was intent on starting its own team, buying an existing one or merely providing engines to other teams. Porsche fielded its own cars in F1 in the late 1950s and early 60s, and returned as an engine supplier with TAG to power McLaren in the 1980s, powering Niki Lauda and Alain Prost to the World Championship in 1984 and 1985.

Porsche celebrates 5M Facebook fans with crowdsourced one-off 911

Porsche's Facebook fan base appears to be accelerating as quickly as the cars it builds. The German automaker has just unveiled a special 911 Carrera 4S designed with crowdsourced input as a way to thank its five million Facebook fans.
The 911 features special Aquablaumetallic paint from Porsche Exclusive, contrasting 20-inch white Carrera S wheels and pinstriping, along with an aero package including a fixed rear wing. Inside, there are unique backlit sill plates and the obligatory dashboard engraving that says "Personally Built by 5 Million Porsche Fans."
As a way to turn at least one virtual thumbs up into its more meaningful physical-world equivalent, Porsche is holding a contest to win the chance to drive the car at Britain's Silverstone racetrack - and bring a friend - and nine lucky runners-up will win 1:43-scale models of the 911. If you want to enter the contest, click here.