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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.

2025 Volvo EX90 enters production after being delayed last year

After a delay of about eight months, Volvo's Ridgeville, South Carolina plant is now assembling the EX90 battery-electric SUV. Volvo's original plan was to get its new flagship in production toward the end of 2023 so that dealers might have models in showrooms early this year. There's also the reservation list, which filled so quickly that Volvo shut it down sooner than anticipated. However, after the car's November 2022 reveal, Volvo engineers confronted unexpected complexities with its software stack. In May 2023, the automaker officially delayed the start of production until the first half of this year. Part of the complexity was the brain in Volvo's EV push, the new VolvoCars.OS software platform running on a new "core computing" system developed with Nvidia and using the tech company's Drive Orin chips — the same chips Rivian uses for its new, streamlined electrical architecture in the Gen 2 R1 models. In Volvo's words, the core computing system "is made up of three main computers. These support each other in operating vision processing and artificial intelligence, general computing and infotainment respectively," this fundamental change in vehicle brain layout allowing the automaker "to gradually separate hardware from software. This means the company can introduce more frequent hardware cycles, so that new Volvo models can be equipped with the latest available hardware." Rowan said he believes the delay will ease the path for what's coming; the code written for the EX90 will see use elsewhere in the lineup, what the coders learning during this hiccup serving the automaker all the way through to an eventual transition to the Global Product Architecture that will succeed the EX90's SPA2 architecture. Back to the South Carolina plant, the first customer car off the line, done up in Denim Blue, will be delivered later this year. The plant's got more good news as well from the other vehicle it builds, the S60 sedan, with year-to-date sales up 255% compared to 2023. Related video: 2024 Volvo EX90 exterior and interior walkaround review

2022 Volvo C40 Recharge First Drive Review | All electric, all Swedish

PALM SPRINGS, Calif. — Volvo doesnÂ’t rock the design boat often, but the 2022 Volvo C40 Recharge is an exception to the Swedish car companyÂ’s staid, yet handsome norm. The C40 is a fully-electric crossover coupe, and it is VolvoÂ’s first vehicle to adopt this fastback shape. Not only that, but itÂ’s also VolvoÂ’s second electric car, following closely on the heels of the XC40 Recharge, a vehicle weÂ’ll drive soon. With the C40 Recharge being a new shape for Volvo, the design and technology teams are using it to debut some new ideas both inside and out. The rear end features new LED taillight technology from Volvo that features segmented LEDs and sequentially activating turn indicators for a different look than the typical fully-lit Volvo taillight. Its grille is debuting a new “Iron Mark” that houses a brand-new (and improved) suite of radar for the driver assistance systems — the logo is also now heated to ensure that neither ice nor snow buildup will stop the systems from functioning.  As for the crossover coupe part of this design, youÂ’ll notice the rear is full of spoilers. VolvoÂ’s head of design, Eric Beak, tells us that the dual, fin-like rooftop spoilers are there as aerodynamic aids in a bid to increase range. Meanwhile, the big spoiler jutting out on the carÂ’s trailing edge is designed to give the car greater stability at high speeds by reducing lift. The 20-inch wheels you see pictured here are the only option, so hopefully you like them. We do, and we like the look of this car overall. Photographs donÂ’t properly capture the angularity and shape of the body panels, but the C40 is a striking crossover coupe when you get up close to it. What could ultimately be even more controversial than the exterior design are the interior material choices. You wonÂ’t find an inch of leather covering the C40Â’s interior. Instead, Volvo is focusing on sustainable materials made using recyclables. For example, the seats are constructed of VolvoÂ’s suede-like Microtech material that is made of recycled polyester. Ditching leather is great, so long as the replacement is suitable for a luxury vehicle at a luxury price, and in this case, it works in nearly every area. Our one complaint is the steering wheel, for the synthetic leather substitute used here feels too much like plastic and is nowhere near as nice or supple to hold as quality leather is. When it comes to driving and charging the C40, the experience is a vaguely familiar one.