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Dealers mobilize to protect their margins from automaker subscription services
Fri, Aug 24 2018Six 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.
Lincoln Star Concept provides a glimpse of four upcoming EVs
Thu, Apr 21 2022The auto industry is in the midst of what has been called a once-in-a-century transformation as it shifts to zero-emissions propulsion. As it happens, this year also marks Lincoln’s 100th anniversary. There were actually Lincolns a few years earlier, but Lincoln counts Feb. 4, 1922, when Henry Ford purchased the company, as its birthday. Like many, Lincoln wants to electrify its lineup, and plans to introduce four new battery-electric vehicles by 2026. Today it unveiled the car that will inform that future, the Lincoln Star Concept. “ItÂ’s a clean-sheet of paper to help us get through the next four products,” chief exterior designer Earl Lucas told Autoblog at a preview. But when asked whether it's a crossover, LincolnÂ’s representatives resist dropping it into any existing categories. Global Design Director Kemal Curic describes it as a “new species.” It lacks the upright, two-box design of crossovers and SUVs dotting AmericaÂ’s roads. Instead it has a dramatically raked A-pillar and an even more acutely angled rear. The greenhouse area tapers towards the rear, and the main body has a distinct anti-wedge silhouette. To these eyes, it has almost wagon-like proportions. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The other hallmark of the Star is its use of lighting. Illuminated surfaces can be found throughout the car — on logos where badges would normally reside, on a thin band that outlines the roof, and on fingernails that trace the wheel arches. ThereÂ’s also an unmissable light bar that spans the leading edge of the nose before curving up over the fenders and to the A pillars. ItÂ’s reminiscent of the chrome strips on the blade-like fenders of the 1961 Continental, but the designers we talked to denied that resemblance. The Star is decidedly anti-chrome, and lighting takes the place of that brightwork. Throughout our walkaround, designers used phrases that evoked a jet age view of transit. “ItÂ’s the journey, not the destination,” said Lucas. Curic uses the term “in flight” when talking about driving modes. Chief interior designer Robert Gelardi called it “the romance of travel.” ItÂ’s as if the Star was channeling a time when Lincolns like the Continental Mark II, once the most expensive domestic car ever sold, bore the American standard around the world and went toe-to-toe against the likes of Rolls-Royce.
Made in America | These cars top the most-American list
Mon, Dec 5 2022The car with the most American/Canadian content for 2022 is ... cue the drumroll ... the Lincoln Corsair, in both standard gasoline-fueled and plug-in hybrid guise. Both versions of Lincoln's compact luxury crossover earned a score of 86 — due to 72% of its parts coming from one of the two aforementioned countries — in the American University Kogod Business School's annual "Made in America Auto Index." Last year's leader, the 2021 Ford Mustang GT (when equipped with a manual transmission) fell all the way to 22nd place with a 50% rating due to a switch in transmissions sourced from Mexico. In case you're interested, that puts Ford's red-blooded American ponycar below vehicles like the Kia Sorento, Mercedes-Benz GLE-Class SUV and Lexus ES. If you're wondering how an American car that's assembled within the borders of the United States could rank below a model from a Korean, German or Japanese automaker, well, we'll let Kogod explain: "The components of the index are based on research performed by the Center for Automotive Research in Ann Arbor Michigan regarding the economic value of different components of auto manufacturing. For example, the highest ranked cars are made by U.S.-based manufacturers using American engines and transmissions, and with a high AALA percentage of U.S. and Canadian parts." There are 25 total vehicles listed in the Top 10 (there are lots of ties this year). Here's the full list: (1) Lincoln Corsair: 86 (1) Lincoln Corsair PHEV: 86 (2) Tesla Model 3 Long Range: 82.5 (3) Chevrolet Corvette Sting Ray: 81 (4) Chevrolet Colorado: 80.5 (5) Jeep Cherokee Latitude 4x4: 80 (5) Jeep Cherokee Trailhawk: 80 (5) Tesla Model 3 Performance: 80 (5) Tesla Model Y: 80 (6) Dodge Durango Citadel: 79.5 (6) Dodge Durango Blacktop AWD: 79.5 (7) Honda Passport Trailsport: 78.5 (8) Ford F-150 2.7L, 3.3L, 5.0L: 77.5 (8) Ford Ranger: 77.5 (8) Ford Bronco automatic: 77.5 (8) Tesla Model S: 77.5 (8) Tesla Model X: 77.5 (9) Jeep Grand Cherokee Laredo 3.6L: 77 (9) Jeep Grand Cherokee L LTD: 77 (9) Jeep Grand Cherokee Overland 3.6L: 77 (9) Chevrolet Camaro automatic: 77 (10) Honda Odyssey: 76 (10) Honda Ridgeline: 76 (10) Honda Pilot: 76 There's a whole long list of reasons for the above scores, with seven criteria that include factory location, headquarters location and where its various bits and pieces come from.
