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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 nearly 200,000 Expeditions and Navigators for fire risk

Ford is recalling 2015-2017 Expeditions and 2015-2017 Lincoln Navigators because the front blower motor could fail and cause a fire. In total, 198,482 Expeditions and Navigators will be recalled. In the official recall documents posted by NHTSA, Ford says that it “has not identified the cause of this condition.” However, Ford also says it is currently aware of 25 fire allegations related to the blower motors on these vehicles. Despite not strictly identifying the cause of blower motor fires, Ford put forth a theory in its fieldwork analysis of the issue.  “In June 2022, based on component analysis, Ford Engineering theorized that a mispositioned blower motor brush holder spring could cause an internal short or localized heating of the brush spring or holder. It is believed that when a fire initiates on the blower motor, it does so at the positive brush holder location. The variable blower controller would remain operational and there would be no signs of an overheated relay. Field data indicates that this concern typically occurs at a higher time in service, and on vehicles with higher mileage.” Since the blower motor is located on the passenger side interior behind the glovebox, the fires that start are interior fires. Ford isnÂ’t aware of any accidents related to this issue, but there is one claim of burnt hands and fingers as a result of a fire. According to Ford, warning signs of an impending fire or failed blower motor include an inoperative fan, burning smell and/or smoke from the instrument panel vents while the vehicle is on. To remedy this situation, Ford is recalling the affected SUVs and replacing the blower motor assembly with a revised part. The new part uses a blower motor assembly design utilized on other applications. If folks with these SUVs experience any symptoms of blower motor failure before the new part becomes available, Ford says they can take their vehicle to the dealer to have it replaced with a part of the same design. Once the redesigned part becomes available, the dealer will then swap it in. Owner notification letters are expected to begin on September 12 this year. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

These are the slowest-selling new cars of 2024

While overall sales numbers are a solid indicator of an automaker’s success, another metric can show how well its new vehicles resonate with buyers on the ground. iSeeCars recently released a list of the fastest- and slowest-selling new car companies on the market, and a handful of brands appear to have some catching up to do. Lincoln landed the “top spot” among slow-selling brands, taking an average of 82.6 days to move inventory. Infiniti wasnÂ’t much better, at 79.8 days, and Buick came third with 79 days to sell.  Slowest-selling new cars of 2024 Lincoln: 82.6 days to sell Infiniti: 79.8 Buick: 79 Audi: 75.1 Ram: 69.7 Ford: 68.1 Dodge: 67.4 GMC: 66.6 Acura: 65.4 Lexus: 64.5 iSeeCars executive analyst Karl Brauer noted that the fastest-selling brands, which include Toyota, Alfa Romeo, and Cadillac, likely move inventory because they resonate with buyersÂ’ desire for value and a compelling product. The study also noted that seeing GMC, Ford, and Ram so low on the list likely indicates slowing truck sales, which comprise a significant portion of those brandsÂ’ numbers. ItÂ’s also possible that buyers are turned off by higher prices from those brands. Fast-selling new car brands also appeared on the used car list, where Honda, Lexus, and Toyota dominated. Unfortunately for Lincoln, it also made the slow-selling used list, between Maserati as the slowest and Alfa Romeo in third. iSeeCarsÂ’ analysis also examined EV and hybrid sales and found that hybrids tend to sell much faster than their electric counterparts. In March 2024, new hybrids took an average of 49.5 days to sell, while EVs took 70.6 days. That again brings us to the price and value arguments, where hybrids are significantly less expensive than EVs, though charging and range concerns also likely play a role. By the Numbers Green Buick Infiniti Lincoln Car Buying