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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.

2015 BMW X4 is a budget X6

We won't argue that crossovers are hugely successful vehicles, with automakers working to provide functional CUVs in a wide range of sizes. But over at BMW, things are just getting out of hand, as evidenced by this new X4 "Sports Activity Coupe" that debuts here at the 2014 New York Auto Show.
BMW is seeing fit to offer vehicles in even the most niche of niches, and the X4 is no exception. Want proof? Have a look at the X4, and the compare it to the X3, the 3 Series Gran Turismo, the 3 Series Sport Wagon, and the 4 Series Gran Coupe. Aside from marginal differences in things like ground clearance and the exact slope of the hatchback, what, exactly, is the difference?
Like the other models we just mentioned, the X4 is powered by either a 2.0-liter turbo-four with 240 horsepower or a more powerful, 3.0-liter turbo-six with 300 horsepower, and unsurprisingly, power is sent to the ground exclusively via the company's xDrive all-wheel-drive system. An eight-speed automatic transmission is the sole gearbox available with either engine. All sounds very familiar, right?

Recharge Wrap-up: GKN electric AWD, $8,500 for Tesla brake repair

A Tesla owner in Canada was quoted $8,500 to repair the brakes in his 2012 Model S. Tesla waived the labor costs, bringing the total price down to $5,824.75. Tesla said that since regenerative braking means the regular brakes get less use, occasional hard braking can help keep them working properly. Also, the salt on the roads in winter leads to corrosion of both the rotors and the calipers. Tesla suggests yearly brake service in harsh climates. Read more at Clean Technica. GKN is launching an electric all-wheel-drive system using its eAxle technology. BMW will be the first to use the system – which is optimized for compact vehicle platforms – in its 2 Series Active Tourer plug-in hybrid. On its own, the electric axle drive offers up to 70 kilowatts (94 horsepower) and 1,475 pound-feet of torque, enough to propel a vehicle up to almost 78 miles per hour under electric power alone. It can also disengage from the driveline when it's not needed in order to reduce rotating losses at higher speeds. Read more from Green Car Congress. The Orange County Transit Authority's (OCTA) first zero-emission, hydrogen powered bus uses a fuel cell from Ballard. The 40-foot ElDorado National Axess bus, powered by Ballard's FCveloCity fuel cell, was funded by the Federal Transit Administration's National Fuel Cell Bus Program. "Clean energy mass transit alternatives, such as this new fuel cell bus in Orange County, are a tremendous example of what can be done to help address clean air challenges," says Ballard Vice President Karim Kassam. "We are excited by the progress being made at OCTA and by others in California." Read more in the press release below. Ballard Module Powers First Zero-Emission Fuel Cell Bus for Orange County Transportation Authority VANCOUVER, CANADA and ORANGE COUNTY, USA – On May 23rd representatives from Ballard attended a ceremony to unveil the first zero-emission fuel cell bus to provide service for the Orange County Transportation Authority (OCTA), one of the largest transit agencies in California. The OCTA bus is the 6th American Fuel Cell Bus (AFCB) configuration delivered in California. Karim Kassam, Ballard Vice President - Commercial said, "Clean energy mass transit alternatives, such as this new fuel cell bus in Orange County, are a tremendous example of what can be done to help address clean air challenges.