2012 Bmw X6 Xdrive35i Automatic 4-door Suv on 2040-cars

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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

BMW sees shortage of crossovers in the United States

BMW of North America CEO Ludwig Willisch is anxious to get the Bavarian brand's $1-billion upgrade at the Spartanburg, SC, factory done because the automaker can't keep up with demand for its crossovers. The expansion should boost total capacity there to 450,000 units a year and support production of the upcoming X7. Still, Willisch would love to have more crossovers as soon as possible. "That is a constant battle now, to get more X3s and X5s," he said in an interview about the company's future in North America to Automotive News. If they the supply were available, Willisch predicts he could sell at least another 10,000 of the CUVs. Willisch sees getting the X7 on the market as a big win for the brand, too. "We were able to convince the company that this is exactly what we need in the United States," he said to Automotive News. However, there is a bit of a wait. The model rides on BMW's next-gen platform, and is at least two years away from challenging the Land Rover Range Rover and Mercedes-Benz's renamed GLS-Class (previously the GL-Class). The fullsize CUV reportedly shares development with Rolls-Royce and might offer the best interior of any model bearing the blue and white roundel. The boss also talked about other future product plans for this continent. For example, Willisch reiterated BMW will not bring the 2 Series hatchbacks here, citing a lack of a market for them. There will be plenty more plug-in hybrids available at dealers, though. Due to "legal requirements" and popularity, Willlisch says PHEV versions will be offered throughout the lineup by 2017. Although, the i sub-brand will stick with the i3 and i8 through that time.

Automakers agree to clean up diesels to avoid ban in German cities

BERLIN -- Auto industry officials and politicians in Germany have agreed to clean up diesel vehicles through software updates as part of a rescue plan for avoiding diesel bans in cities, industry and government sources said on Friday. The costs of the rescue plan amount to under 2 billion ($2.33 billion) euros for cars in Germany, with the auto industry agreeing to shoulder the expense of about 100 euros per car, the sources said. After Volkswagen Group confessed to emissions-test cheating in 2015, the entire auto industry has come under scrutiny for producing nitrogen oxide emissions in diesel cars, which are blamed for causing respiratory disease. Audi, a division of Volkswagen Group, said it would update engine software on up to 850,000 diesel cars. The refit of six and eight cylinder engines will be free of charge for all customers, Audi said. The service will also be offered to Porsche- and Volkswagen- branded cars using the same six- and eight-cylinder engines, Audi said. Earlier this week, Porsche's CEO was quoted as saying the brand may abandon diesel engines as its electric cars go to market, and Mercedes announced a plan similar to Audi's, in which it will recall 3 million diesel cars in Germany for a $255 million engine software fix. Diesel cars from all domestic and foreign car brands that conform to the latest emissions standards, Euro-6 and Euro-5, will be updated, the sources said. The plan is set to be presented at the beginning of August. With the software updates, the auto industry is able to cut nitrogen oxide pollution by about 20 percent, the sources said. A committee will be set up to measure the impact of updating diesel cars on individual communities and cities, with a view to averting bans of diesel cars, the sources said. Auto industry executives and German Transport Minister Alexander Dobrindt are due to discuss diesel pollution at a summit on Aug. 2. Reporting by Arno SchuetzeRelated Video: Government/Legal Green Audi BMW Mercedes-Benz Porsche Volkswagen Diesel Vehicles dieselgate diesel emissions