Auto blog

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-Benz F 015 Luxury in Motion has an absurd name, remarkable vision

We often hear about cars that don't look good in pictures. "You need to see it in person," people say. Well, the Mercedes-Benz F 015 Luxury in Motion, which the company brought to Detroit after debuting it at CES, is just such a vehicle. Besides having a very silly name and looking, according to one Autoblog editor, like a suppository, this is a genuinely striking piece of design when viewed in the metal. The shape is aerodynamic in the extreme, but still features subtle details and styling cues. Whether that be the small dorsal ridge on the roof, the simply huge wheels and the Cylon-like, wraparound taillights, despite a fairly uniform shape, there's still a lot to see on the F 015. That's doubly true in the cabin, which is typically luxurious, while also doubling as a rolling lounge withs eating for four. Accessible via barn doors that open up to 90 degrees, the F 015's cabin features fine woods and leathers, as well as seats that swivel around to face each other. Screens abound (there are six in total), and gesture-and-touch-based controls are the order of the day, producing what Mercedes calls a "digital arena." As an autonomous vehicle, MB doesn't offer a lot of technical information on propulsion or guidance systems, simply saying that the pod-like concept could accommodate an electric motor and fuel cell. Take a look at our gallery of live images Mercedes' sci-fi vision, and if there's an auto show coming to your neck of the woods, get out and see this strange and impressive car.

Sunday Drive: A new Rambo Lambo takes center stage

Surprise! Autoblog readers love fast cars. Doesn't matter what shape; doesn't matter what size. As long as it's got big power, wicked acceleration, and ludicrous speed, you're interested. Take, for instance, the brand-new Lamborghini Urus. It's got a 4.0-liter twin-turbocharged V8 sending 641 horsepower and 627 pound-feet of torque through an 8-speed automatic transmission to all four wheels. It hits 62 miles per hour in 3.6 seconds, and has a top speed of 189.5 mph. Ludicrous speed? Check. And although you'd be hard pressed to draw a line straight back from the upcoming Urus to the old, off-road-ready LM002, at least you can say that Lamborghini does have a history of producing overpowered SUVs. A 5.2-liter V12 engine producing 444 horsepower and borrowed from the Countach certainly qualifies as big power, especially considering this was in the 1980s and '90s. A prime example just sold for nearly half a million bucks. Moving along to more traditional sportscars, we got a sneak peek at the next Porsche 911's interior, thanks to some intrepid spy photographers. And we spy with our little eyes some major changes to the quintessential German sportscar. Finally, we round out this Sunday Drive with two First Drive reports. Both are German, but past that, they couldn't be more different. Either way, ludicrous speed is all but guaranteed by either one. As always, stay tuned to Autoblog for all the latest automotive news that's fit to print. The 2019 Lamborghini Urus, fastest SUV in the world, has landed Rare U.S.-spec 1990 Lamborghini LM002 fetches $467,000 at auction Next Porsche 911 will get a major interior overhaul 2018 Mercedes-Benz S-Class Coupe/Cabriolet Review | Creamy goodness 2018 BMW M5 First Drive Review | Power meets traction