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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 teams with Delta airlines to woo VIP passengers

The next time you're waiting for a flight at Hartsfield-Jackson Atlanta International Airport, see if you can spot a Porsche Cayenne or Panamera zipping between aircraft on the busy tarmac. The high-performance German vehicles aren't there practicing for an upcoming autocross; they are tasked with whisking some of the airline's most important customers between flights so they can keep their busy schedules intact.
Launched nearly two years ago, the program has proven popular with the automaker, airline and passengers as all benefit from the unique arrangement. Atlanta-based Porsche is able to showcase its cars to Delta's frequent-flying Medallion members, the airline is recognized for providing unusual perks to its high-value customers and those fortunate enough to be surprised with a quick lift are able to make connections without a stressful run through the terminal. Based on its success, the airline is rolling our similar programs in New York, Los Angeles and Minneapolis this month.
And don't think Porsche is the only automaker working with an airline to entice its frequent flyers. Mercedes-Benz ran a program over the summer that offered purchasing and leasing incentives to MileagePlus Premier members of United Airlines, and the two are currently shuttling top fliers around Houston's George Bush Intercontinental Airport in the automaker's S-Class and GL-Class models.

The 1994 Porsche 911 Speedster only looks weirder with age

The 1994 Porsche 911 Speedster is undoubtedly a rare car, and it's even rather quick by the standards of the era. However, the designers weren't at their best when they created the odd shape at this model's rear. MotorWeek remembers this classic Porsche's exciting performance and weird look in its latest Retro Review. The Speedster's design isn't all bad. The front end still looks fantastic thanks to the nose of the 964-generation 911 and a steeply raked windshield. We can even live with the body color wheels. However, things get much worse at the rear where the hard cover, which hides the roof, gives the convertible a hunchback. As MotorWeek shows, fitting the manual top is quite fiddly. Porsche might have been better off from a styling perspective by leaving the back smooth and completely ditching the complicated roof. You can't get a good look at the weird rear from the driver's seat, and MotorWeek says that the Speedster excels once you're behind the wheel. The handling and braking are reportedly especially good. Sport seats grip the driver closely, and even with 247 horsepower, the convertible gets to 60 miles per hour in 5.4 seconds. With the weather starting to warm up, it sounds like a great experience, and you can imagine taking a ride in MotorWeek's latest video. Related Video: