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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.

Mercedes-Maybach GLS 600 and our new long-term Acura TLX | Autoblog Podcast #661

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder. This week, they talk about the cars they've been driving, including the Mercedes-Maybach GLS 600 and Audi A4, as well as the recently departed long-term Volvo S60 T8 and the new addition to the long-term fleet, an Acura TLX. In this week's news, they talk about the Stellantis merger completion, some more thoughts about GM at CES, BMW announcing an electric M car, an upcoming electric Lincoln Corsair and the possibility of an electric-only Ford Mustang in 2028. Autoblog Podcast #661 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown What we're driving:2021 Mercedes-Maybach GLS 600 2021 Audi A4 S Line 45 TFSI Quattro 2020 Volvo S60 T8 2021 Acura TLX A-Spec News:Stellantis is a thing now More thoughts on GM at CES BMW announces electric M car is coming this year Electric Lincoln Corsair-E coming in 2026, report says The next-gen Ford Mustang reportedly going all-electric, arriving in 2028 Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:

Lincoln may add suicide doors to future Continental

There's been plenty of uncertainty surrounding the future of the Lincoln Continental, a nameplate revived only 18 months ago but struggling to move units as sedans submit subduction-style to the techtonic boom in crossovers. We recently shared a report that the Continental won't live to see another generation after selling just 18,846 units in its year-and-a-half back on the market. Now comes a report from Automotive News saying that Lincoln at the 2018 NADA convention in Las Vegas showed a photo of the Continental with rear-hinged doors and said it plans to manufacture it. The publication cited several dealers who were in the room but didn't want to be identified. Lincoln, of course, isn't saying anything about rear-hinged suicide doors except to say that "Continental is an important part of the Lincoln family." The announcement at NADA was reportedly meant to convey a commitment to cars by Lincoln, which has been buoyed by crossovers like the MKC and its red-hot Navigator large SUV. There was no word on timing or other details about the suicide door-equipped Continental. Lincoln sold just 1,573 units of the sedan through February, down about 25 percent on the annualized monthly rate. Still, if Lincoln wants to plant its flag in the car segment, then its flagship is probably a good place to start. The Continental nameplate, which was revived in New York in 2015 as a concept, enjoys a long design lineage, of course, and boasted production suicide doors on the 1961 Continental Mk V. The luxury sedan also inspired one artist to reimagine the Continental as a two-door coupe, true to its original 1939 styling and demonstrating the car's versatility. And the car already has some concept-style futuristic touches, including hidden electric door handles and 30-way adjustable front seats. But suicide doors have mostly been relegated these days to concept vehicles, one-offs like this Rolls-Royca Sweptail and the Tesla Semi truck. So should we see this as a way for Lincoln to draw some attention to a struggling nameplate? Related Video: