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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.

2021 Cadillac Escalade ESV officially shown for the first time

When Cadillac originally debuted the 2021 Escalade at the beginning of the year, it held back on photos of the long-wheelbase ESV version of the truck. GM told us the ESV would be revealed in full at the New York Auto Show this year, a show that was promptly postponed due to coronavirus. However, that hasn’t exactly stopped us from seeing the ESV anyway. One of our spy shooters managed to capture a trove of images, showing the ESV without any camouflage. You can scroll through those below. 2021 Cadillac Escalade ESV Sport View 20 Photos At the top of this post sits the one official Cadillac image of the ESV — the other photos are from Cadillac's online visualizer tool. What a grand reveal! The Escalade pictured in front is the Platinum Luxury trim, and the one behind it is the Sport (or Sport Luxury Platinum). Just like we spied before, the main styling differences between the regular Escalade and ESV are minimal. Cadillac extended the rear door and massaged the C-pillar — itÂ’s thicker and leans at a sharper angle. Even before revealing the car in photos, Cadillac gave us all the specs. That was enough for an on-paper comparison between it and the Navigator, including the long wheelbase versions of both. The ESV is 15.9 inches longer than a standard Escalade, allowing for more third row legroom and additional cargo capacity. In other news, Cadillac says orders for the 2021 Escalade can be made today via its website. The system will put you in touch with a dealership to place your order. Those orders will begin arriving in dealerships this fall, according to CadillacÂ’s current plans. You can check out full model line pricing in our post detailing it all here. Related video:

Chip Foose is bringing life to a Cadillac sketch from 1935

General Motors, automotive home of Harley Earl, was a pioneer in the early days of car design. But for as many wild concept cars and even production cars as the company's studio created, there were still many that never got off the paper. Chip Foose is working to change the fate of one of those designs. According to Foose Design, Chip Foose's latest project is based on a sketch from 1935. Car dealer Wes Rydell and his wife Vivian commissioned a custom Cadillac coupe that was sketched out by GM designer Art Ross. It would take an existing Cadillac sedan, shorten it, lower it and give it a removable hardtop. The drawing is as far as the project got. Now Chip Foose is working on realizing the design in real life using a 1939 Cadillac Series 60 Sedan. He plans to follow the initial design brief, but with his own unique touches. He has also named the project "Madam X" in honor of what Harley Earl would call client projects. It is scheduled to be finished and ready for unveiling at the end of the summer. Foose is a well-known designer who has won some of America's most prestigious custom car awards such as the Ridler Award and designed vehicles for the TV show Overhaulin'. The final product should be quite a striking machine. You can see how it's coming along, as well as Foose's sketch of what the car will finally look like, in the gallery above. Related Video: Featured Gallery 1939 Cadillac Series 60 by Chip Foose View 13 Photos Image Credit: Foose Design, Inc. Auto News Celebrities Design/Style Cadillac Classics chip foose overhaulin