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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.

BMW X2 spied looking swirly

Generally, automakers really hate spy photos. They go to great lengths to disguise their cars, while engineers will do their damnedest to get away from spy shooters (or, you know, they just give them the bird). BMW, though, just doesn't seem to care about spies. That's the only reason to explain why our spy photographers were able to capture yet another X2 crossover undergoing testing on the sunny, autumnal German roads. Judging by the number plates, this is a different vehicle than the last couple of X2s we've spied, although it's camouflaged almost identically to last month's X2. This car does appear to have larger, sportier wheels than that blue prototype, although the similar bumpers has us thinking it's merely an optional wheel rather than the an M Sport model. Beyond that, though, there's not a lot to differentiate this X2 from previous sightings. Our spies continue to report that the X2 will echo the powertrain/drivetrain arrangement of the upcoming X1. It'll ride on that car's front-drive architecture, although like the X1, all-wheel drive will be optional in Europe and standard here in the US. The engine lineup, meanwhile, should include turbocharged triples, fours, and sixes, in both gas and diesel varieties. Here in the US, we'd expect the 28i and its 2.0-liter, turbocharged four-cylinder, at the very least. Considering the lifestyle angle of the X2, a more powerful 35i model would likely be a natural here in the US, but that's just conjecture. Have a look at the spy shots up at the top of the page. Related Video:

Xcar rates AWD vs. FWD vs. RWD

With snow and ice blanketing large swathes of the United States over the past few weeks, commuting hasn't been easy. Among some drivers, there's an ongoing debate about how much all-wheel drive really helps when it gets slippery and whether rear-drive is as bad in slick conditions as many people think. Xcar Films puts some of those beliefs to the test in its latest video by showing off three very different cars taking on a trio of low-grip challenges. Xcar's picks for the test include the fairly plebeian, all-wheel drive Subaru Impreza, the somewhat plush, rear-drive BMW 120d and the sporty, front-drive Renault Megane RS 275 Trophy. Things start out easy with a hydraulic plate forcing the back end out on a wet skid pad. From there, the tests get really interesting with a slalom on simulated ice, and the cars finish with a high-speed cornering challenge through a soaked turn. While an obvious winner emerges in the end, keep in mind this is hardly a scientific test of grip. For better accuracy, all three vehicles should be wearing identical tires, and the same driver should be behind the wheel of each one. Still, Xcar's examination is a fun chance to see how vehicles react when things get slick. News Source: Xcar Films via YouTube BMW Subaru Renault Driving Safety Videos xcar renault megane xcar films renault megane rs