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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.

Ford recalls 591,177 vehicles in four separate campaigns

Ford is issuing recalls for a total of 591,177 vehicles worldwide, in four separate campaigns. The announcement comes just days after the discovery of door-latch problems in 390,000 of the automaker's cars. The largest of these new recalls covers 518,313 examples of the Ford Fusion and Lincoln MKZ from the 2013-2015 model years, plus the 2015 Edge. Of these, 487,301 of are in the US and 31,012 are in Canada. For vehicles in cold-weather areas, the bolts that hold the steering gear motor can corrode and fracture. If this happens, it could cause the power steering to fail, but manual control would be retained. There are no reported accidents or injuries from this problem. To fix things, dealers will replace the bolts and seal them. The next campaign covers 50,157 examples of the 2014 Focus, Edge, Escape, and Transit Connect, plus the Fiesta from 2014 and 2015. Of these, 45,505 are in the US, 4,618 in Canada, and 34 in Mexico. All of them exhibit a problem with the fuel pump where the nickel plating can cause the part to seize and the engine to stall, if this occurs. (All of which sounds like recent problems with Nissan and BMW models.) According to Ford, there is one allegation of an accident from this problem. Dealers will replace the fuel delivery module to fix the problem. Ford is also recalling 22,616 units of the 2015 Lincoln MKZ because when the headlights are on, the parking lamps are brighter than they are allowed to be. The light could affect the vision of other drivers. This campaign includes 21,435 of them in the US, 1,066 in Canada and 115 in Mexico. There are no accidents or injuries from the issue, but Ford is updating the software to dim the lights on these sedans. Finally, Ford has a safety campaign for 91 examples of the 2015 F-150 because an underbody heat shield might not be properly installed or not present at all, which can be a fire risk. There are no reports of any actual accidents or fires, though. The affected pickups will have the parts replaced or added, as necessary after a dealer inspection. To see the specific build dates for the models affected by each of these campaigns, you can read about them in the press release below. Related Video: FORD ISSUES FOUR SAFETY RECALLS IN NORTH AMERICA Ford Motor Company is issuing four safety recalls in North America. One accident and no injuries are attributed to these conditions.

2019 Lincoln Nautilus First Drive Review | A refresh that's more than skin deep

SANTA BARBARA, Calif. — Its name is new, but the 2019 Lincoln Nautilus is really a rebranded, restyled and updated version of the second-generation Lincoln MKX, which has been on sale since 2016. Renaming your bestselling vehicle is risky, but Lincoln has been struggling, and it feels the names of its vehicles are partly to blame. Recall that since 2007, Ford's luxury brand has used letters to name some models, including MKZ and MKX, and traditional names on others like Navigator and Continental. Well, now it's ditching the letters and renaming those vehicles. The MKX is now the Nautilus. The smaller MKC is rumored to become the Corsair, which was a name used by Edsel back in the 1950s. The seven-passenger Aviator will go on sale in 2019, and the MKZ's new name is anybody's guess. Zephyr again, maybe? NordicTrack is already taken. Lincoln has also been rolling out a new grille design, which debuted on the Continental in 2017 and replaces the unloved winged look that was supposed to remind luxury buyers of the elegance of the 1939 Lincoln Continental — but didn't. Fitting the new grille to the 2019 Nautilus completes that rollout, and the five-passenger SUV is certainly more handsome than before. Its mesh is a repetition of the Lincoln Star logo, and it works. The SUV's front fascia, headlamps and hood are new as well, and the hood has grown a sizable and attractive center peak. Underneath that hood is a new 2.0-liter turbocharged four-cylinder with direct injection. It's the same engine used in the smaller MKC and the Ford Edge, which shares the Nautilus' chassis, but Lincoln doesn't use the name EcoBoost for this and its other powerplants. The 2.0-liter replaces the naturally aspirated 3.7-liter V6 as the standard engine, and it's rated 250 horsepower at 5,500 rpm and 280 lb-ft of torque at 3,000 rpm on 93 octane fuel. Those numbers are down from the V6, which was rated 303 hp at 6,500 rpm and 278 lb-ft of torque at 4,000 rpm. But Lincoln has also replaced the antiquated six-speed automatic transmission with an eight-speed, so overall performance is comparable, and city fuel economy is up significantly. With the V6 and front-wheel drive, the MKX was rated 17 mpg city and 25 mpg highway. The new combination has a 21 mpg city rating. The considerably more powerful twin-turbo 2.7-liter V6 remains optional, rated 335 hp at 5500 rpm and 380 lb-ft of torque at 3250 rpm.