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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.

18,000 BMW models recalled for potential fuel pump failure

BMW will be recalling over 18,000 vehicles from the 2, 3 and 4 Series families, including vehicles from model years 2014 and 2015, due to potentially bad fuel pumps. The full roster of vehicles includes four- and six-cylinder models of all hardtop 2 Series models, rear-, all-wheel-drive and Gran Turismo versions of the 3 Series, and coupe, convertible, Gran Coupe, rear- and all-wheel-drive 4 Series models. The 3 Series ActiveHybrid is also included in the recall, although the 3 Series diesel line has been left alone. According to the bulletin from the National Highway Traffic Safety Administration, "improper" nickel plating on some of the parts could lead to a failure of the fuel pump, leading to a stall situation. BMW is planning to notify owners and will begin replacing the fuel pumps of affected vehicles at the end of the month. Scroll down for the official NHTSA bulletin, which includes a complete breakdown of individual models affected by the recall. Related Video: Report Receipt Date: MAR 31, 2015 NHTSA Campaign Number: 15V189000 Component(s): FUEL SYSTEM, GASOLINE Potential Number of Units Affected: 18,054 Manufacturer: BMW of North America, LLC SUMMARY: BMW of North America LLC (BMW) is recalling certain model year 2014 228i Coupe, M235i Coupe, 320i, 320xi, 328i, 328xi, 335i, 335xi, ActiveHybrid 3, 328xi Sports Wagon, 428i Coupe, 428xi Coupe, 435i Coupe, 435xi Coupe, 428i Convertible, 428xi Convertible, 435i Convertible, 328xi Gran Turismo, 335xi Gran Turismo, and 2015 428i Gran Coupe, 428xi Gran Coupe, and 435i Gran Coupe vehicles. Improper nickel plating of components within the fuel pump may result in the fuel pump failing. CONSEQUENCE: If the fuel pump fails, the vehicle may stall without warning, increasing the risk of a crash. REMEDY: BMW will notify owners, and dealers will replace the fuel pump, free of charge. The recall is expected to begin April 30, 2015. Owners may contact BMW customer service at 1-800-525-7417. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Recharge Wrap-up: Renault ZOE wins Zenn Monte-Carlo Rally, BC revives EV rebates

Renault ZOE EVs took the top four places in the 2015 ZENN Monte-Carlo Rally. Renault's cars finished first in consumption, regularity and overall standings. ZOEs took the top four spots overall and in the regularity tests, and the top five places for consumption. Renault entered four teams - two with professional drivers (finishing first and second), one piloted by journalists (placing third) and another by bloggers (taking seventh place). Another individual team entered the race with their own ZOE and finished fourth overall. The electric vehicle race took place over 130 miles and seven and a half hours. Read more in the press release from Renault below. British Columbia has reinstated its Clean Energy Vehicle Incentive Program. Phase two of the program, which starts April 1, is expected to put another 1,700 plug-in cars on BC roads. It's funded by the province's Innovative Clean Energy Fund, which gets its money from carbon taxes. Customers can receive rebates of up to C$5,000 for EVs, while fuel cell vehicle customers could get back up to C$6,000. Drivers can also get up to $C3,250 for scrapping cars built before 2000. BC is also investing in more charging infrastructure, EV fleets and outreach. See the video above, and read more from British Columbia government website and at Green Car Reports. BMW is noticing increased sales of its i3 EV tied to government incentives for electric cars. "We can see a clear connection between sales figures and political initiatives," says BMW Group CEO Norbert Reithofer. "Wherever governments offer tangible incentives for e-mobility, the registration figures for the BMW i3 soar." Last year, BMW sold about 2,000 i3s in Norway and 3,000 in California. In Germany, where BMW only sold about 2,100 i3s, Riethofer suggests the government needs to do more to support clean cars. "The German carmakers have delivered their part of the bargain. The ball is in now in the court of policymakers," he says. Read more at Automotive News Europe. Renault ZOE takes the top four places in the 6th ZENN Monte-Carlo Rally Following a sparkling victory last year, Renault ZOE has put in yet another remarkable performance at the 2015 ZENN Monte-Carlo Rally with four ZOE models taking the top four spots.