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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.

NHTSA, IIHS, and 20 automakers to make auto braking standard by 2022

The National Highway Traffic Safety Administration, the Insurance Institute for Highway Safety and virtually every automaker in the US domestic market have announced a pact to make automatic emergency braking standard by 2022. Here's the full rundown of companies involved: BMW, Fiat Chrysler Automobiles, Ford, General Motors, Honda, Hyundai, Jaguar Land Rover, Kia, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Subaru, Tesla, Toyota, Volkswagen, and Volvo (not to mention the brands that fall under each automaker's respective umbrella). Like we reported yesterday, AEB will be as ubiquitous in the future as traction and stability control are today. But the thing to note here is that this is not a governmental mandate. It's truly an agreement between automakers and the government, a fact that NHTSA claims will lead to widespread adoption three years sooner than a formal rule. That fact in itself should prevent up to 28,000 crashes and 12,000 injuries. The agreement will come into effect in two waves. For the majority of vehicles on the road – those with gross vehicle weights below 8,500 pounds – AEB will need to be standard equipment by September 1, 2022. Vehicles between 8,501 and 10,000 pounds will have an extra three years to offer AEB. "It's an exciting time for vehicle safety. By proactively making emergency braking systems standard equipment on their vehicles, these 20 automakers will help prevent thousands of crashes and save lives," said Secretary of Transportation Anthony Foxx said in an official statement. "It's a win for safety and a win for consumers." Read on for the official press release from NHTSA. Related Video: U.S. DOT and IIHS announce historic commitment of 20 automakers to make automatic emergency braking standard on new vehicles McLEAN, Va. – The U.S. Department of Transportation's National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety announced today a historic commitment by 20 automakers representing more than 99 percent of the U.S. auto market to make automatic emergency braking a standard feature on virtually all new cars no later than NHTSA's 2022 reporting year, which begins Sept 1, 2022. Automakers making the commitment are Audi, BMW, FCA US LLC, Ford, General Motors, Honda, Hyundai, Jaguar Land Rover, Kia, Maserati, Mazda, Mercedes-Benz, Mitsubishi Motors, Nissan, Porsche, Subaru, Tesla Motors Inc., Toyota, Volkswagen and Volvo Car USA.

BMW brings laser headlights and HUD helmet to motorcycles

BMW is complementing its array of cutting-edge tech at the 2016 Consumer Electronics Show with the ConnectedRide concept that adapts automotive innovations to the motorcycle world. To highlight the two-wheeled future, the company modified a K1600 GTL with a laser headlight and controls for a helmet-integrated head-up display. The result could make riding safer if these developments ever come to market. Some of BMW's latest models like the i8 and 7 Series can already cut through the darkness with laser headlights, and this K1600 GTL brings that technology to motorcycles. The bright light can shine down the road up to 1,969 feet, which the company claims is about twice as far as a conventional unit. The additional visual range gives riders extra time to evaluate what's ahead at night and could make for a safer journey. The concept laser headlight on the bike is only a feasibility test for now, but preliminary development is underway. However, the lights might need modification to see production in the US because BMW had to turn down the power on the units in the i8 to get FDA approval, according to BMW Blog. BMW also wants to make riders safer through a helmet-integrated HUD that ensures they never need to take their eyes off the road. While other companies already offer similar products, this solution maximizes the available information. Through controls at a person's left hand on the handlebars, a user can select displays of current speed, selected gear, tire pressure, oil and fuel level, and even speed limits, and the system displays the desired info right in front of the wearer's eye. A front-mounted camera can record the trip, and a rear-mounted one can simulate a rearview mirror. Real-world production of the HUD is still a few years away, but BMW says future versions could incorporate vehicle-to-vehicle communications to let the system receive hazard warnings, too. BMW Motorrad ConnectedRide. Concepts for motorcycle laser light and helmet with head-up display. BMW Motorrad will be displaying two innovations at the Consumer Electronics Show (CES) in Las Vegas on 6-9 January 2016. Laser light for motorcycles and a helmet with a head-up display will be presented, setting new standards of motorcycle safety, along with a technical outlook of how they may be employed in series models of the future. BMW K 1600 GTL concept vehicle with BMW Motorrad laser light.