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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

German carmakers recall 630,000 diesel vehicles in Europe

Mercedes, Opel, Porsche, and Volkswagen will recall over 630,000 cars in Europe, according to reports Friday. No diesel car has been able to get under the legal emissions limit in real-world driving, according to a German government investigation. While only Volkswagen Group has been using a specific "defeat device", other carmakers have been playing with their exhaust gas recirculation (EGR) systems. Depending of the manufacturer, the systems have been cut off at a certain temperature. In a specific test cycle the systems operate to fulfill the legal requirements, but in everyday use the limits are exceeded. According to the magazine Der Spiegel, the supplier Bosch is behind this programming and has provided it to all German automakers. The mentioned carmakers have announced recalls, but many other manufacturers are also mentioned by name in the report, including Alfa Romeo, Chevrolet, Dacia, Fiat, Ford, Hyundai, Jaguar, Jeep, Land Rover, Nissan, Renault, and Suzuki. PSA Group, which produces Peugeot, Citroen, and DS cars, declared yesterday that its offices were raided following an emissions investigation. Related Video: News Source: AutocarImage Credit: Getty Images Government/Legal Green Recalls Mercedes-Benz Porsche Volkswagen Opel Emissions Diesel Vehicles diesel emissions investigation

Vettel steals victory from Hamilton in Australian Grand Prix

MELBOURNE, March 25 – Sebastian Vettel made full use of the virtual safety car to sneak in front of Lewis Hamilton and hold off the frustrated champion to win Formula One's season-opening Australian Grand Prix on Sunday. The Mercedes engine's infamous 'party mode' that delivered Hamilton a blistering pole lap on Saturday could do little once Ferrari's Vettel nosed ahead when re-entering from pit-lane midway through the race at Albert Park. Pole-sitter Hamilton had appeared set to coast to victory with a clear pace advantage but the race turned on its head with the safety car, which was called after Romain Grosjean's Haas failed and rolled to a stop at turn two. In another bonus for Ferrari, Kimi Raikkonen finished third, fending off Red Bull's Daniel Ricciardo and leaving the unlucky Australian still searching for a first podium in his home race. "We got a bit lucky." Four-times world champion Vettel claimed a 48th overall win and his third in Melbourne following his victories at Albert Park last year and in 2011. "It was needless to say we got a bit lucky with the timing of the safety car," the German, who had started from third place and inherited the lead when Hamilton and Raikkonen had pitted earlier in the race, told reporters. "It's not the easiest track to pass." For Hamilton, the result was a bitter pill to swallow and had echoes of last year's race. Vettel also managed to re-enter in front of him from pit-lane in 2017 before burning away to victory while the pole-sitting Briton was blocked by traffic. Mercedes boss Toto Wolff said his team had miscalculated the margin between the cars during the safety car period. "We thought we had enough margin," he told the BBC. "It must have been a software bug in the system that caused us to get it wrong. We are digging deep now to understand where we had a problem." "I don't understand what's happened." Hamilton, who cockily spoke of "wiping the smile off" Vettel's face with his pole lap on Saturday, battled to keep positive. "Even now I don't understand what's happened," the 33-year-old told reporters. "I did everything I believe I was supposed to do." After the pit-lane setback, Hamilton drove hard to reel in Vettel and battled back after taking a slide at a corner that blew out the lead to nearly three seconds. But he finally waved the white flag in the closing laps to preserve the car for future races.