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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.

Race Recap: Abu Dhabi GP is reversals, luck, leanness and last dances

We weren't sure if Alter Ego Nico Rosberg, the one who flew into Brazil and showed Mercedes AMG Petronas teammate Lewis Hamilton that he knew also knew how to grab an entire race weekend by the scruff of the neck, arrived in Abu Dhabi. In both Friday practice sessions Hamilton showed Rosberg the way. Then on Saturday, Alter Ego Rosberg took over, taking the last Free Practice session and then pole position by a whopping four-tenths of a second over Hamilton. Thanks to the gimmicky and soon-to-be-obliterated spectre of double points, if Rosberg won the race and Hamilton finished lower than second, the World Championship would remain in German hands. Behind Hamilton came the Williams duo, again, with Valtteri Bottas ahead of Felipe Massa. Daniil Kvyat did swell to put his Toro Rosso in fifth, Jenson Button was just as swell getting his McLaren into sixth. Kimi Raikkonen outqualified his Ferrari teammate Fernando Alonso for the third time this year, the pair taking seventh and eighth on the grid. Kevin Magnussen lined the second McLaren up in ninth, Jean-Eric Vergne making the top ten for Toro Rosso in his last race for the team. To be clear, that was the final grid for race: Daniel Ricciardo and Sebastian Vettel had both qualified in the top ten but were sent to the back of the grid when their Infiniti Red Bull Racing front wings were deemed illegal. They'd start from the pit lane, which was still ahead of Romain Grosjean in the Lotus, who took so many penalties for new engine components that he started the race in Turkey. At lights-out on Sunday, well, it was pretty much lights out. That's when Hamilton got the start of the year, bolting off the line so quickly it didn't take him 100 meters to get in front of Rosberg. The Brit took Turn 1 in the lead, then laid more than a second into the German on the first lap. Rosberg kept close, about 2.5 seconds back, but it was Hamilton's race to lose and everyone knew it; barring a reliability issue or the kind of driving mistake Hamilton hasn't made all year, Britain would have its fourth double world champion. Rosberg was left asking his engineer what kind of strategy they might use to claim first place. That reliability issue did come, but it struck Rosberg on Lap 26 when his entire Energy Recovery System failed, robbing him of 160 horsepower and taxing his brakes.

Mercedes-Benz working on S-Class EV in accelerated green car lineup?

With Mercedes-Benz bringing out coupe and plug-in hybrid versions of its S-Class sedan, the German automaker just may follow through with a battery-electric variant as well. That's what the company's Uwe Ernstberger told the folks at Top Gear during the Geneva Motor Show. And while he noted the company still needs to work in a larger-than-usual battery pack and was less than specific with details, he did envision an all-electric S-Class "in the future." Of course, rumors started bubbling about an EV S-Class as far back as 2011, so we'll see. Christian Bokich, department manager for product and technology communications for Mercedes-Benz USA, would not confirm anything about an electric S-Class, but he did give AutoblogGreen an official rundown of MB's upcoming green cars in the US, starting with the launch of the all-electric B-Class ED in July of this year in the ZEV states (launch details for other states are TBA, he said). An S-Class plug-in hybrid is coming in the first half of 2015, followed by a C-Class PHEV closer towards the end of that year in the USA. There is also a C-Class four-cylinder BlueTEC coming at some point in 2016. Until we get more concrete information about the possible S-Class EV, let's review what we know about the PHEV. Last September, Mercedes-Benz started showing off the plug-in hybrid S-Class, saying that it could go as far as 19 miles on electric power alone and had a preliminary fuel efficiency rating of more than 78 miles per gallon, using the more lenient European driving cycle. Earlier this week, Mercedes showed off its S-Class Coupe. That model's US version will have a twin-turbocharged V8 that kicks in 449 horsepower, a few more than the presumptive S-Class EV will have. Ernstberger also said Mercedes would join the ranks of automakers offering autonomous driving systems and mentioned the S-Class as being at the "top of the movement." He held his tongue when asked about the possibility of an S-Class cabriolet.