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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.

GM recalling 54k Cadillac SRX, HD pickup models

There are more recalls to report General Motors, but these latest actions pertain to newer examples of the Cadillac SRX, Chevrolet Silverado HD and GMC Sierra HD. With so much scrutiny on the company's recall strategy, GM is under increasing pressure to call in defective models more quickly, and it appears to be doing so here.
Here in the US, the automaker is recalling 50,571 Cadillac SRX crossovers from the 2013 model year fitted with the 3.6-liter V6 because the transmission control module programming can cause a three- or four-second lag in acceleration at low speeds. The explanation filed with the National Highway Traffic Safety Administration states, "if the following sequence occurs within two seconds: during an upshift from first to second gear (8-10 mph), the driver then brakes the vehicle to less than 5 mph, and then accelerates again," the delay can occur. According to Automotive News, the recall effects 56,400 vehicles worldwide, and the company is not aware of any crashes caused by the problem. The fix consists of a transmission control module (TCM) reflash.
In a separate recall, GM is repairing 51 Chevrolet Silverado HD and GMC Sierra HD pickups from the 2015 model year in the US. In vehicles with diesel engines and dual fuel tanks, the nuts that connect the fuel pipe to each side of the transfer pump between the tanks may be improperly torqued, which could cause a fuel leak. Obviously, this could be a fire hazard. The remedy is simply tightening the hardware. According to GM spokesperson Alan Adler, there have been no fires actually caused by the potential leak. "Only 21 of the trucks are in customer possession and they can be fixed anytime because there are no parts involved. The others are being fixed at dealerships," Adler said in an email to Autoblog.

Editors' Picks February 2021 | Ford F-150, Genesis GV80, Mazda CX-30 and more

If we’ve driven and reviewed it, thereÂ’s an Autoblog Rating for it. ItÂ’s been over two years since we launched a new rating system to help you evaluate cars at a glance. We tweaked and improved it along the way and quickly arrived at a consistent process for giving each and every car on sale today a fair score. Cars that are exemplary or stand out in their respective segments get EditorsÂ’ Pick status. Those are the ones weÂ’d recommend to our friends, family and anybody whoÂ’s curious and asks the question. Every car we rate gets a score from 1 to 10, making it easy for you to tell if itÂ’s a car worth pursuing and possibly purchasing. YouÂ’ll find the scores of previously-rated cars attached toward the top of our written reviews. For example, the Bronco SportÂ’s rating can be found here. The Acura TLXÂ’s rating is in this post, and the Nissan RogueÂ’s rating is right here. There are hundreds of examples to be found. The above examples make up the most natural ways to find the Autoblog rating when researching for your next car, but starting today, weÂ’re going to begin calling out each new set of Editors' Picks per month in their own breakout stories. This will put the newest and most recently refreshed cars on sale on a pedestal for you to see which ones are worth your while. WeÂ’ll typically rate anywhere between 5-10 new cars per month, so you can count on just a select few from those to make this list. Expect to see this recurring ratings post each month going forward, and read on for FebruaryÂ’s EditorsÂ’ Picks.   2021 Genesis GV80 2021 Genesis GV80 View 18 Photos Quick take: The stylish GV80 offers useful safety features, compelling design and sporty dynamics to push it near the top of the segment. Genesis takes risks with this aggressive crossover, and the result is a luxurious vehicle that is rewarding to drive. Score: 8.5 What it competes with: Lincoln Aviator, Volvo XC90, BMW X5, Mercedes-Benz GLE-Class, Acura MDX, Lexus RX Pros: Beautiful design, good road manners, awesome value Cons: Small third row and cargo space, less comfortable standard suspension  From the editors: Editor-in-Chief Greg Migliore — “The GV80 is a hugely important vehicle for Genesis. It makes a style statement, has an elegant interior and is a compelling all-round execution. It looks like a Bentley, and I give Genesis props for taking some risks with the GV80 and largely pulling it all off.