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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.

Defying Trump, major automakers finalize California emissions deal

WASHINGTON — The California Air Resources Board (CARB) and major automakers on Monday confirmed they had finalized binding agreements to cut vehicle emissions in the state, defying the Trump administration's push for weaker curbs on tailpipe pollution. The agreements with carmakers Ford Motor Co, Volkswagen AG, Honda Motor Co and BMW AG were first announced in July 2019 as voluntary measures prompting anger from U.S. President Donald Trump. A month later, the Justice Department opened an antitrust probe into the agreements. The government ended the investigation without action. The Trump administration in March finalized a rollback of U.S. vehicle emissions standards to require 1.5% annual increases in efficiency through 2026. That is far weaker than the 5% annual increases in the discarded rules adopted under President Barack Obama. The 50-page California agreements, which extend through 2026, are less onerous than the standards finalized by the Obama administration but tougher than the Trump administration standards. The automakers have also agreed to electric vehicle commitments. Volvo Cars, owned by China's Geely Holdings, said in March it planned to join the automakers agreeing to the California requirements. It has also finalized its agreement. The settlement agreements say California and automakers agreed to resolve "potential legal disputes concerning the authority of CARB" and other states that have adopted California's standards. In May, a group of 23 U.S. states led by California and some major cities, challenged the Trump vehicle emissions rule. Other major automakers like General Motors Co, Fiat Chrysler Automobiles NV and Toyota Motor Corp did not join the California agreement. Those companies also sided with the Trump administration in a separate lawsuit over whether the federal government can strip California of the right to set zero emission vehicle requirements. Ford said the "final agreement will reduce emissions in our vehicles at a more stringent rate, support and incentivize the production of electrified products, and create regulatory certainty." BMW said "by setting these long-term, predictable, and achievable standards, we have the regulatory certainty that is necessary for long-term planning that will not only reduce greenhouse gas emissions but ultimately benefit consumers as well." 

Refreshed BMW 6 Series sports an understated redesign in Detroit [w/video]

BMW is keeping its refresh for the 2015 6 Series family very subtle. The tweaks amount to an understated nose job for the luxury models and some new standard tech, as well. The Bavarian brand is definitely not going too far with this redesign for the vehicles, and they even remain mechanically the same. The most obvious change for the latest 6 Series models is the sharpened front end. BMW explains that the grille now features nine slats, rather than ten. Clearly, this is a major change in design. The lower air dam is slightly reworked to accentuate the vehicles' width, and, in addition, the four-door benefits from a tweaked window surround with the Gran Coupe name embossed near the rear doors. All versions also get standard full-LED headlights. Inside, there's high-gloss black trim covering the center and LEDs illuminating portions of the interior. Beyond these minor alterations, BMW is offering two new options packs for the family that tweak the looks. While the company doesn't have any earth-shattering changes in store, they are there. Try to spot the changes in the refreshed 6 Series models as they sit on the floor of the 2015 Detroit Auto Show. The new BMW 6 Series: Three Body Styles Rejuvenated and Ready to Take on the Competition Woodcliff Lake, N.J. - December 10, 2014 6:00pm EST/3:00pm PST... Through three generations, the BMW 6 Series has defined that unique blend of style and elegance with the performance and handling that one would expect of The Ultimate Driving MachineTM. For the 2015 model year the third-generation of BMW 6 Series receives a range of enhancements that refine the character that is unique to the 6 Series. Now offered in three distinct body styles – traditional two-door Coupe, open-air Convertible and unique four-door Gran Coupe – all three are again offered with a choice of BMW TwinPower Turbo engines, the 315 horsepower inline-six in the 640i models and the 445 horsepower V8 in the 650i models. Sitting at the top of the 6 Series range, in terms power and performance, is the BMW M6 with its 560 horsepower M TwinPower Turbo V8, again available in all three body styles. The 2015 BMW 6 Series will make its world debut at the North American International Auto Show and arrives in US showrooms in the first quarter of 2015. Sports performance and luxury – a combination rich in tradition. The new BMW 6 Series model range follows in a BMW tradition of legendary dream cars which now stretches back more than 75 years.