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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.

Join Autoblog editors for a full video tour of the 2019 Detroit Auto Show

The 2019 North American International Auto Show might have been a little more quiet than past years, but there were still some pretty major reveals, including the Toyota Supra, new Ford Explorer, Shelby GT500, Subaru WRX STI S209 and Kia Telluride. We also saw some lovely concepts like the Nissan IMs and Lexus LC Convertible. Senior Editor Alex Kierstein, Consumer Editor Jeremy Korzeniewski and Senior Green Editor John Beltz Snyder join me, Associate Editor Reese Counts — with Social Media Manager Michael Dylan Ferrara behind the camera — on a long walk through the show. We discuss cars, poke around the stands, dress a bloody wound and answer your questions in the Facebook comments. For more Detroit coverage, you can check out Autoblog's picks for the best in show, listen to our podcast or look at the best images from all the reveals. Finally, don't forget to watch Editor-in-Chief Greg Migliore hand over our 2019 Technology of the Year award. Related Video: Green Detroit Auto Show Acura Cadillac Chevrolet Ford GM Hyundai Infiniti Kia Lexus Nissan RAM Subaru Toyota Volkswagen Truck Convertible Coupe Crossover Hatchback Minivan/Van SUV Videos Sedan facebook 2019 detroit auto show live

GM patent reveals new two-stage turbocharger

Modern turbochargers may be some of the best ever made, but performance is something that engineers are always trying to improve. According to GM Inside News, General Motors (GM) is hoping to alleviate some of the negative aspects of a two-stage turbocharger setup with a newly-patented design. The patent, that was filed on May 19, 2016, reveals a clever bypass system that allows the engine, a four-cylinder unit, to optimize both the low-pressure and high-pressure inlets for its respective functions. According to the filing, a conventional two-stage turbocharger setup is engineered to allow both turbines to operate simultaneously at low and mid engine speeds. At high engine speeds, only the low-pressure turbine works. The setup can't isolate either the low or high pressure side, which can impair low-end performance. GM's new two-stage turbocharger setup looks to eliminate this by linking the high-pressure turbo to the exhaust manifold through the high-pressure inlet duct. The low-pressure turbo is attached to the high-pressure turbo by a low-pressure inlet duct, which is linked to a connecting channel. A single actuator that is housed in the exhaust manifold creates a bypass that can opens the high-pressure inlet or close the connecting channel. Depending on what the engine load and speed is, the ECU guides the actuator—a single rotating spindle with discs corresponding to flanges on the high and low pressure sides—to isolate one of the two turbos. Isolating the turbos allow the respective inlets to be engineered for the best possible fluid dynamic performance. The setup should increase performance and decrease lag. There's no word on what car this setup will make an appearance on, but it will most likely be used in premium vehicles before trickling down to the rest of GM's vehicles. Related Video: News Source: GM Inside News, AutoGuide via GM Authority Cadillac Chevrolet GM Technology Sedan turbo patent engine turbocharging