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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.

BMW 6 Series Gran Coupe gets Bang & Olufsen Individual edition [w/video]

Not content with a bit part on the options sheet, high-end sound gets a starring role on the BMW Individual 6 Series Gran Coupe Bang & Olufsen Edition. There's no technical difference between the 1,200-watt, 16-speaker High End Surround Sound System in this run of 6 Series Gran Coupes and the $3,700 system you can order as an option on the standard Gran Coupe, but the special edition gets brushed black aluminum finish speaker grilles, a first for the range.
The packages and colors are what set these apart, exteriors available in either Brilliant White Metallic or Dark Graphite II Metallic, interiors possible in either black or Opal White and black. You'll also get upgrades like the Cold Weather, M Sport Edition Packages on the non-M car, the Competition Package and Executive Package on the M, plus piano black wood trim, special floor mats and lots of B&O badging.
This isn't just a special edition, it's a limited edition, with BMW saying only 100 will be produced. Prices start at $116,240 for the 650i B&O Edition and top out at $152,423 for the M6 B&O Edition. There's a press release below with more details, and we've included a video on the stereo itself to help understand why it might deserve a car named after it.

BMW makes X7 in Spartanburg official

BMW has made it official - there will be a flagship crossover called X7, and it will be built right here in the US of A. The announcement was made today, confirming rumors of the new model at the Spartanburg, SC factory that broke earlier this week.
"Plant Spartanburg was built to enhance and expand the BMW lineup, underscoring the BMW Group commitment to the United States" said Dr. Norbert Reithofer, chairman of the BMW board of management in a statement. "In addition to the X3, X5, X6, and the new X4, we are today announcing another all-new, larger X model to be manufactured exclusively at this plant for our world markets: the X7."
BMW will spend $1 billion by 2016 upgrading its South Carolina factory, which already produces the X3, X5 and X6. The plant is currently capable of producing 300,000 units per year, but with the big investment from BMW, capacity will climb to 450,000 units. 800 jobs will be added as a result of the investment and new and upcoming models.