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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.

Junkyard Gem: 1986 Lincoln Town Car

Ford's Lincoln Division applied the Town Car name (originally the Anglicized name for a coupe de ville horse-drawn carriage) to new cars beginning with the 1959 Continental, but it wasn't until the 1981 model year that the Town Car became a Lincoln model in its own right (earlier Town Cars were Continentals). Those boxy, sharp-edged Town Cars were built throughout the remainder of the 1980s and sold well, but they're almost extinct today. Here's one of those cars, found in a Denver-area self-service yard recently. The Town Car was built from the 1981 through 2011 model years, with a complete redesign for 1990 that kept the same chassis but added a less angular body and rear air suspension. In 1998, the Town Car got the full "whale" body treatment seen on its Ford Crown Victoria and Mercury Grand Marquis siblings, and production of that version continued until the end. In China, Hongqi built a version badged as the CA7460 Qijian. All 1981-2011 Town Cars lived on the versatile and sturdy body-on-frame Panther platform. For a 1970s design, the Panther stayed relevant for a surprisingly long time. This car was closely related to the Ford LTD Crown Victoria and Mercury Grand Marquis, not to mention the Continental Mark VI. The interior is full of "wood-tone appliques" and the gauges come straight from mid-1970s Lincoln-Mercury products. These "twin comfort lounge" seats were just as comfy as they look here, and the Nearly Velour™ fabric just needs a cleaning to be in like-new condition. Of course, the optional Cartier package had much classier upholstery. You'll find one in every car. You'll see. Every 1980s Town Car had some sort of padded vinyl roof as standard equipment. This roof has not fared well beneath the Colorado sun. It's a shame that opera lights have gone out of fashion. Every 1981-1990 Town Car got a 302-cubic-inch (5.0-liter) Windsor V8 under the hood. 1986 was the first year that electronic fuel injection replaced carburetors in the Town Car; this engine was rated at 150 horsepower and 270 pound-feet. The jarring mashup of typefaces on the HVAC and radio controls of mid-1980s Fords always makes me uncomfortable. This car has the optional "wire-style" hubcaps, which cost an extra $341 (about $920 in 2022 dollars). Several flavors of aluminum wheels were available on the '86 Town Car, but no true wire wheels. The MSRP on this car was $20,764, or about $56,130 today. The Cartier Edition would set you back $25,235 ($68,215 now).

Ford to add Android Auto and CarPlay to 2016 SYNC 3 cars via update

Ford is updating a large number of 2016 model year cars equipped with SYNC 3 infotainment software, adding Android Auto and CarPlay to the vehicles with a free, over-the-air update via Wi-Fi, or using either USB or going through their dealer. The upgrade will be available for around 800,000 vehicles in total, giving a huge number of Ford car owners the chance to get big infotainment improvements without having to buy a newer model car. The OTA update option is also a big step for Ford – it's the company's first for software ever, and it's one of the major reasons that Ford recently hired around 400 new mobile smartphone engineers, the company tells me. For CarPlay, users will still also need to upgrade their vehicle's USB hub to make this work (which will also incur a dealer visit and a cost), but for those on Android, all that's required is a simple software installation. The USB install method is also faster, but the Wi-Fi update option is the start of the company's efforts to really increase its OTA update program, which will be used for security improvements as well as infotainment bumps. Even with a dealer visit and hardware upgrade for CarPlay, this sounds like a worthwhile thing for 2016 vehicle owners to do. CarPlay and Android Auto are huge upgrades vs. most in-car software, offering navigation and entertainment options that follow you from your phone to your car. Retroactively offering this kind of thing to car owners is a definite change in tone for carmakers, since they typically use these kinds of things as incentives to get people interested in vehicle model updates. But as data becomes increasingly important to automakers as a business, it makes sense to encourage greater in-car use of devices.Written by Darrell Etherington for TechCrunchRelated Video: Auto News Ford Lincoln Technology Infotainment android