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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.

VW could look outside its own ranks for next CEO

Companies have two options when coming up with succession plans – hire within, or go outside its ranks. Either choice comes with advantages and disadvantages, to be sure. Hiring within means generally getting someone familiar with the company and its culture and traditions, while going outside is ideal if you're looking to shake things up and bring in fresh ideas. It's unclear which avenue the Volkswagen Group will go down when it comes time to replace its head man, Herr Professor Doctor Doctor Herr Martin Winterkorn, but he isn't ruling out a trip outside of Wolfsburg. Winterkorn has already given the reins of the VW brand to former BMW board member Herbert Diess, while Andreas Renschler, a former Daimler board member, is heading up VW's truck group. Now, Winterkorn has made some statements to a German weekly that indicate the most important thing about his successor isn't necessarily his (or her, though no women appear to be on the short-list) previous employer, Motoring.com.au is reporting, so much as his qualities as a leader and an engineering background. "A Volkswagen boss has to have a big affinity to our products. He needs to be close to customers and he needs to have a relationship with dealers," Winterkorn told Stern. "Like always, it depends on the personality and it also helps if the candidate is an engineer." Motoring throws out a couple of potential candidates from within, including Porsche boss Mathias Muller, Audi Chairman Rupert Stadler and engineering guru Ulrich Hackenberg, in addition to both Diess and Renschler. And while each candidate has a lot of potential, the only thing that's guaranteed right now is what Winterkorn has already said: "The decision about who will succeed me is not an easy one for the supervisory board."

Super Bowl commercials: Steven Tyler, Emerson Fittipaldi, Keanu Reeves and more

Sunday is Super Bowl LII, which means America will immerse itself in high-calorie potluck fare, garish halftime-show entertainment (Justin Timberlake, bringing sexy back, but not that kind), the most expensive and over-the-top TV ads of the year, and — oh yeah — a football game between two teams connected by Amtrak's Northeast Corridor line. What else you gonna do on the first Sunday of February? As usual, automakers plan big, splashy TV spots to reach all those gajillions of eyeballs glued to the teevee, though the list may be shorter than in previous years. Here's a roundup of what we know is coming. Hyundai Hyundai will test the football/futbol divide with a 60-second spot starring a youth-soccer ref who arrives for the game dramatically and just in time in his 2018 Kona. Only it's Super Bowl Sunday, so he — along with the two coaches, and apparently most of the parents — are eager to get on with their game-day plans. Advantage: football, being the message, we guess. The ad does make a quick plug for Hyundai's BlueLink nav system, but this is only nominally about the car. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Hyundai also plans a 60-second ad that recognizes people fighting pediatric cancers and highlights its own nonprofit organization that focuses on the cause, according to Reuters. Kia This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The Korean automaker will put Aerosmith frontman Steven Tyler behind the wheel of its new Stinger on an abandoned racetrack. The former " American Idol" host promptly puts it into reverse, going back to his '70s heyday, courtesy of some CGI, to the strains of "Dream On" played backwards. Trotting out an almost-70-year-old to relive some classic rock glory fits the Super Bowl template to a T. Two-time Formula One and Indianapolis 500 champ Emerson Fittipaldi also makes a cameo. It airs in the third quarter. Lexus This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Lexus teams with Marvel Studios to preview its forthcoming movie "Black Panther," which arrives in theaters Feb. 16. In "Long Live The King," the Black Panther, a.k.a. King T'Challa, played by Chadwick Boseman, dispatches some bad guys to recover stolen Vibranium after clinging to the roof of a speeding 2018 LS 500 F Sport, driven by co-star Danai Gurira.