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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 M4 Convertible poised for Goodwood unveil

It shouldn't be a shock that BMW is working on a convertible version of the M4. Not only have we caught it testing twice, but this is an automaker that seems willing to build a vehicle for nearly every buyer's needs. Evo claims that the high-performance droptop is going to debut at this year's Goodwood Festival of Speed in England from June 26-29.
Judging from the spy shots we've seen, the M4 Convertible will consist of a retractable hard top like the 4 Series cabrio. Other than the roof, there aren't expected to be many changes from the coupe. The engine will be the same turbocharged, 3.0-liter inline six-cylinder engine, but the added weight of the roof and its mechanism may take a small bite out of performance.
We spoke to BMW USA about the rumor and were told that it has no comment at this time. After the M4 Convertible, Evo claims that BMW is working on a M4 Gran Coupe. How that would be all that different from an M3, isn't exactly clear.

BMW 8 Series coming in 2020

As good as the BMW 7 Series may be – and trust us when we say it is very good indeed – it just can't compete with the marketplace juggernaut that is the Mercedes-Benz S-Class, at least not where global sales are concerned. And with sales come profits, especially at the six-digit price point many of these high-end luxury cars sell for. Put simply, Mercedes is cashing in on the S-Class, and BMW wants a bigger piece of that pie. It comes as little surprise, then, that Autocar reports BMW is currently considering two proposals for a new 8 Series that would slot just above its current 7 Series. One option is the currently-en-vogue four-door coupe. The other option is a more traditional two-door coupe, likely with a cabriolet option. The last time we heard such rumors, BMW was dismissing them back in 2013. Whichever way BMW decides to take its 8 Series plans, Autocar suggests that a concept vehicle ought to hit the show circuit in sometime in 2018, with a production model following in 2020. The car would be based on the underpinnings of the latest 7 Series, with a price considerably less than the Rolls-Royce Ghost (which also falls under the BMW umbrella). Considering BMW's penchant for multiple model variants, we won't be surprised if all three options get the green light, with a Gran Coupe version standing as the flagship. With the 6 Series Gran Coupe currently priced just below the 7 Series (and at a hefty premium to a comparable 5 Series four-door), an 8 Series would likely brush up against $100,000 for a base price. That might not take much out of S-Class sales, but it would make some tidy profits for BMW. Related Video: