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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.

Mercedes confirms first AMG Sport models for Detroit

If you're looking for a sportier Mercedes-Benz but can't quite make the leap to a full-on AMG model, we've got some good news for you: the German automaker is about to expand its performance portfolio with a more accessible AMG Sport range. Set to bridge the gap between a standard Mercedes fitted with an AMG Sports package and a complete AMG performance variant, models in the the new AMG Sport line will feature upgraded engines, suspensions and brakes. They'll even have "all-wheel drive as standard in selected markets" (almost certain to include ours). Affalterbach has confirmed that the first two AMG Sport models will debut at the upcoming Detroit Auto Show in January. Though it's not saying which models will hit the stage, the teaser image above suggests that one of them will be the new MLC crossover coupe (or whatever it'll be called under the new nomenclature), while the other is almost certain to be the new C450 AMG Sport sedan. The launch of the AMG Sport line is part of the brand's effort to double its 2013 sales figures by 2017 to top over 40,000 units per year globally. With the AMG Sport line joining the standard AMG and AMG S models, the sub-brand is considerably expanding its product portfolio to cater to more customers and budgets, and will give Mercedes a vehicle range to challenge Audi S models and the BMW M Performance range. MERCEDES-AMG UPS THE ANTE - Growth strategy aimed at new market segments - Doubling of global sales targeted by 2017 - Premiere of the new AMG Sport models at the North American International Motor Show in Detroit Affalterbach - The sports car and high-performance brand Mercedes-AMG will achieve a new sales record of well over 40,000 units globally this year. Its entry into the compact segment and the broadening of its product range have provided the Affalterbach-based company with access to new customer groups and secured success in established and new markets. New models developed entirely in-house, such as the SLS AMG and, more recently, the Mercedes-AMG GT, consolidate the brand's success story and place it firmly on course for sustained growth. "We are proud of these successes, as they provide the basis for the next stage of our growth strategy, which we are now launching," explains Tobias Moers, Chairman of the Board of Management of Mercedes-AMG GmbH.

McLaren F1 boss says team will dethrone Mercedes

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