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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.

China patent leak may show BMW hydrogen fuel cell car

A series of leaked patent renderings has revealed what Car News China claims is a new BMW hydrogen fuel cell concept slated to debut in a few weeks time at the 2015 Los Angeles Auto Show. Likely set to be a member of the company's i sub-brand, this compact three-door looks like the love-child of the ultra-efficient manufacturers i3 electric car and i8 hybrid sports car. It's narrow, boasting a cab-forward design and an aggressive interpretation of the company's current front end styling. The rear is angular and taut, and the entire car features an aerodynamic teardrop shape. Despite modern styling elements, like the headlights and grille, CNC rightly points out that there's something inescapably "1990-concept-car-ish" about this vehicle's look. We can't quite put our finger on it, but it's there. We won't have long to wait to see if these patent renderings are real. The 2015 Los Angeles Auto Show kicks off on Wednesday, November 18. You can check out the rest of the patent renderings over at Car News China. Related Video: The video meant to be presented here is no longer available. Sorry for the inconvenience.

BMW reveals R NineT Scrambler at EICMA [w/video]

BMW Motorrad has rolled into the EICMA motorcycle show in Italy with a new version of the R NineT. While the existing version has proven a fast favorite among customizers with its cafe-racer style, the new version takes the classic Scrambler approach that recalls off-road dirt bikes from the 1950s, 60s, and 70s. And it looks at least as hot as the existing Roadster. The new R NineT Scrambler is powered by the same 1.17-liter boxer twin as the Roadster, good for 110 horsepower and 85 pound-feet of torque. What separates it from the Roadster is the rest of its feature set. The exhaust is positioned higher alongside the swingarm and 17-inch rear wheel, while the front features an over-sized 19-inch wheel with a longer-travel telescopic fork. The seating position is more upright than the Roadster as well, with higher handlebars and foot-pegs moved slightly down and back - all for a more relaxed ride. Up front there's a circular headlamp, with analog instruments. Four-piston calipers grip 320-millimeter discs up front, with 2-piston calipers on 265-mm discs at the back. The Scrambler comes in a matte silver finish with a brown saddle, but like the Roadster, it's designed to be customized. So the accessories catalog is filled with parts to make it your own, and the modular frame is meant to be disassembled and reconfigured to the rider's specifications. BMW R NineT Scrambler debuts this week at the Milan fair grounds alongside the new single-cylinder G 310 R and the eRR electric sport bike concept. The new BMW R nineT Scrambler – a down-to-earth character beyond established conventions. They were ridden by action heroes on the screen and scores of hobby racers entered mountain and beach races on them: the Scramblers. With deep-treaded tyres, a raised exhaust, somewhat extended spring travel and a relaxed seating position, Scramblers offered their riders in the 1950s to 1970s not just motorcycling fun on winding country roads but also great off-road capability and therefore an extended range of use. Like the motorcycles themselves, the people who rode Scramblers were not bound by established conventions. And they could be seen virtually everywhere: on winding country roads, stony mountain passes and - where it was allowed - even on sandy beaches. The history of BMW Motorrad is also rooted in the Scrambler concept.