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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.

Mercedes leads in US luxury car thefts

Mercedes-Benz makes some fine automobiles. The Silver Arrow'd cars are so good, apparently, that thieves can't help but try to steal them. The German brand is at the top of the charts for luxury car thefts in the US, according to the National Insurance Crime Bureau, with New York City leading the way. (And those New Yorkers complain about Detroit being bad!)
The C-Class was the most stolen model, with 485 ganked between 2009 and 2012 in NYC alone, while the E-Class and S-Class (which also boasted the worst recovery rate, at 59 percent) both finished in the top ten. Following the C-Class was the BMW 3 Series and Infiniti G. Not surprisingly, each of these were the most common models in their respective lineups. Los Angeles and Miami are also prime hotspots for luxury car thefts, according to the Detroit News report.
While getting your car stolen is pretty awful, there was one inspiring statistic compiled by the NICB - the average recovery rate across the board was 84 percent, with the Cadillac CTS getting recovered 91 percent of the time.

The 570-hp AC Schnitzer ACL2 Concept tries to one-up the M2

AC Schnitzer's new ACL2 concept aims to outdo the BMW M2 at the Geneva Motor Show. To out-muscle the latest M car, the German tuner starts with an M235i and installs the M4's 3.0-liter inline-six. The company also turns up the power to 570 horsepower – a healthy upgrade over 365 hp from the M2's 3.0-liter. The power bump lets the ACL2 reach 62 miles per hour in 3.9 seconds and hit a top speed of 205 miles per hour, AC Schnitzer claims. Those figures make the coupe a few tenths quicker than the M2's 4.2-second to 60 mph sprint, but BMW limits its creation to 155 mph. AC Schnitzer's long list of upgrades makes the impressive performance possible. To get the most out of the engine, the company installs a carbon fiber intake. It also replaces the most of the exhaust, including the downpipe, catalytic converter and tailpipes. Carbon-ceramic brake discs make sure a driver can control so much power, and the company fits a fully adjustable suspension to aid handling. The ACL2's body is too loud for our tastes even through the subdued dark green paint, but the extensive use of carbon fiber parts should keep weight down. AC Schnitzer adds a road-scraping front splitter with canards at each corner. The rear has a similarly aggressive diffuser and huge wing. The wider fenders also add 5.5 inches to the coupe's width, and 20-inch wheels sit underneath them. The ACL2 doesn't get to challenge the M2 on the Autobahn yet because AC Schnitzer says it's just a concept. The coupe exists simply for the company's product development. However, if you want to put all of these bits together, the final cost would be 149,000 euros ($161,500 at current exchange rates), the tuner claims. Related Video: