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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.

2016 Porsche Boxster Spyder First Drive [w/video]

The recipe for the 2011 Porsche Boxster Spyder cooked up a meal that everyone loved. Yes, even with the three-piece, Erector Set canvas top that took one journalist 30 minutes to lower the first time. Boiled down, the 2011 model was a Boxster S with 10 extra horsepower and 176 fewer pounds, graced with accelerated reflexes. For the second coming of the Boxster Spyder, Porsche fortified the ingredients it used in the first. It starts with the Boxster GTS and adds the 3.8-liter flat-six from the 911 Carrera S, tuned to 375 horsepower and 301 pound-feet of torque. The Spyder subtracts around 72 pounds compared to the Boxster GTS, weighing in at 2,899 pounds. This, then, is both the most powerful and the lightest Boxster you can get. For you fact-checkers out there, the entry-level Boxster is listed at 2,888 pounds on the Porsche USA site, but a spokesman points out that, "the metric for determining weight has changed, which increased the amount of fluids necessary to perform weight testing." In other words, the base Boxster is unchanged, but the real-world curb weight is actually higher. It's ridiculous to quibble over 11 pounds – or whatever the difference is – because the Boxster Spyder has 110 more horsepower and 96 more pound-feet than the base model. With a successful technique already established, we thought the latest Boxster Spyder would even more of a raucous and rowdy good time than its predecessor. But it's not. The standard Boxster Spyder doesn't come with manual A/C or a stereo, but both can be added for no additional cost. The exterior, at least, exhibits the right kind of maturity. Front and rear fascias swiped from the Cayman GT4 add 10 millimeters in length compared to other Boxsters. Those pieces make the car lighter, along with items like the aluminum doors and decklid. The bulges behind the roll hoops, called streamliners, are the can't-miss-it references to Porsche's historic and legendary Spyders. In case admirers still don't get it, Spyder badges sit atop each rear quarter panel. Inside, the leather, body-colored trim, and copious amount of Alcantara is like a track-day package arranged by Prada. The steering wheel is shared with the Cayman GT4. The lightweight sport seats that hug like a carbon fiber cradle in our test car aren't available in our market. Different sport seats are standard in the US, racier buckets are a $4,750 option.

Porsche close to fix for 911 GT3 engine fires

It looks like 2014 Porsche 911 GT3 drivers might actually get to drive their cars again soon. Reports of fires affecting the track-ready Germans first began about a month ago. Then, a few days later, the automaker confirmed two of the five alleged blazes and said owners shouldn't drive their cars until further notice. Porsche then went so far as to offer to pick up the GT3s and transport them to the nearest dealer until the problem was identified and a fix was found. Finally, there appears to be a repair.
"We know the reason and the problem-solving measures. We're testing them," said Porsche CEO Matthias Müller to Bloomberg. The technical fix will be released to owners shortly.
The recall affects all 785 GT3s that have been sold so far, but there have been no reported injuries caused by the fires. When it first announced the safety campaign, Porsche said: "Internal studies to determine the cause of the engine damage have not been completed yet."