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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.

Future Classic: 2008-2013 Volvo C30

Volvo has a storied reputation of building cars that are safe and solid – vehicles that are as cherished for their function-over-form designs as they are their mechanical longevity. But Volvo is also low-key cool. The Swedish carmaker is beloved by enthusiasts for its commitment to offering wagons, and for its many motorsports efforts. Flying brick, anyone? That coolness doesnÂ’t always trickle down to VolvoÂ’s road cars, but every now and then, the company gives us something a little weird. And in the mid-2000s, Volvo introduced the C30: a two-door hatchback geared towards younger, hipper buyers. Was the C30 a luxury compact? A hot hatch? Nah, it didnÂ’t really fit either vibe. Still, the C30 was nevertheless cute and quirky, and compared to other Volvos of the era, it was truly one of a kind. Why is the Volvo C30 a future classic? The C30 rode on the same platform as the S40 sedan and V50 wagon (as well as the contemporary Mazda 3 and EuropeÂ’s second-generation Ford Focus), but had way more personality than both. VolvoÂ’s hallmark tall taillights flanked a huge piece of glass that extended from the roofline to the bumper, serving as the C30Â’s hatch. Of course, this expansive window also meant the items in the cargo area were readily on display, making them an easy target for smash-and-grab thefts. A range of powertrains were available around the world, including diesel engines and even a super-limited-production electric variant. In the U.S., however, we only got the T5 gas engine, which in its standard form produced a 2.5-liter turbocharged inline-5 with 227 horsepower and 236 pound-feet of torque (more on the not-so-standard form later). You could get a six-speed manual transmission, which wasnÂ’t a terribly engaging gearbox, but was still more fun than the five-speed automatic. With the C30, Volvo put an emphasis on the hatchbackÂ’s ability to pump up the jams. An optional Premium Sound package had 10 Dynaudio speakers, an Alpine subwoofer and Dolby Pro Logic II surround. This setup could even play CDs with MP3 and WMA files, and included an AUX jack for things like iPods. Archaic technology by today's standards, but in the 2000s, this was clutch. 2013 Volvo C30 R-Design Polestar Limited Edition View 12 Photos What is the ideal example of the Volvo C30? One word: Polestar. In 2012, Volvo introduced a limited-edition C30 Polestar, only 250 of which were sold in the United States.

Ex-Volvo boss Stefan Jacoby to head GM's international operations

He was too talented not to surface somewhere, we just didn't know where and when. Nine months ago, Stefan Jacoby stepped down from his post as Volvo CEO, a move that caught many off guard. At the time, the separation was called "amicable," but word is that the strong-willed executive clashed with owners Geely and the automaker's board.
Jacoby will have a new set of challenges on his hands, as he has just been named Executive Vice President Consolidated International Operations for General Motors. That means the Hannover-born Jacoby will head up the company's operations in Asia, Africa, Europe and the Middle East, where he will be responsible for over 100 countries and territories. Jacoby succeeds Tim Lee, who has been named chairman of GM China. Lee will also retain his post as Executive Vice President Global Manufacturing.
Jacoby's dealings with Geely should help him in his Asian market duties, but he also counts time as the head of Volkswagen of China on his resume, so he's very well-versed in the market's peculiarities.