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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.

Daimler, BMW partnering up on wireless charging

Plug-in vehicle advocates can get all warm and fuzzy about two Germany heavyweight automakers getting together for the sake of wireless charging. That's because Mercedes-Benz parent Daimler and BMW will work together to speed up development of a wireless charging system. While not a ton of details were divulged, we can still rejoice. Daimler says the system will consist of an on-board coil and another coil that can be placed within the garage floor or someplace similarly stationary. The system will charge at 3.6 kilowatts and with 90 percent efficiency. No details were released about the system's price or when it would be available, but Daimler shouldn't wait too long, since other OEMs are already talking about their own wireless charging systems. Daimler obviously has some skin in the game here, since Mercedes-Benz will start sales of its S500 plug-in hybrid in September. That model, which was first shown off last August at the Frankfurt Auto Show, can go as far as 20 miles on electric power alone and will get fuel economy of about 84 miles per gallon equivalent. And it's easy to imagine an i3 or i8 driver getting a kick out of never needing to touch a cord. This spring, reports sprung up that fellow German automaker Volkswagen was preparing a wireless charging option for its electric vehicles as soon as 2017. You can check out Daimler's press release below. Wireless charging of electric drive and plug-in hybrid vehicles: PLUG IN HYBRID - unplugged One of the next steps on the way to perfect electric drive and plug-in hybrid vehicles is wireless charging. Daimler and BMW have now agreed on jointly developing and implementing one common technology. Wireless charging of the battery will make the handling of electric drive and plug-in hybrid vehicles even easier. Mercedes-Benz will commence fleet testing of this "unplugged" technology with the S 500 Plug in HYBRID soon, in order to develop a real S-Class solution in recharging the high voltage battery in terms of comfort and ease of operating in the near future. The system consists of two components: a secondary coil integrated into the under tray of the car and a primary coil integrated into a floor plate that can be placed on a garage floor for instance. Electrical energy is transmitted contact-free without the need for a cable, at a power rate of 3.6 kW and with a degree of efficiency of 90%.

BMW expounds on i8 design and performance in new videos

At this point, there isn't much we don't know about the 2015 BMW i8, so BMW is starting to focus its attention on reassuring consumers that the future of BMW won't abandon the past. In these two recently released videos, BMW answers questions prospective buyers might have about about the new model's design and performance.
In the design video, BMW explains how the i8's styling is intended to be practical, with aerodynamics and fuel efficiency in mind, yet still have a sporty and dynamic look. The performance video aims to show that the plug-in hybrid can be fuel efficient while still delivering plenty of performance, and it shows an animation about how the i8's drive systems work together. Scroll down to watch both videos on this bold green supercar.