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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.

Xcar rates AWD vs. FWD vs. RWD

With snow and ice blanketing large swathes of the United States over the past few weeks, commuting hasn't been easy. Among some drivers, there's an ongoing debate about how much all-wheel drive really helps when it gets slippery and whether rear-drive is as bad in slick conditions as many people think. Xcar Films puts some of those beliefs to the test in its latest video by showing off three very different cars taking on a trio of low-grip challenges. Xcar's picks for the test include the fairly plebeian, all-wheel drive Subaru Impreza, the somewhat plush, rear-drive BMW 120d and the sporty, front-drive Renault Megane RS 275 Trophy. Things start out easy with a hydraulic plate forcing the back end out on a wet skid pad. From there, the tests get really interesting with a slalom on simulated ice, and the cars finish with a high-speed cornering challenge through a soaked turn. While an obvious winner emerges in the end, keep in mind this is hardly a scientific test of grip. For better accuracy, all three vehicles should be wearing identical tires, and the same driver should be behind the wheel of each one. Still, Xcar's examination is a fun chance to see how vehicles react when things get slick. News Source: Xcar Films via YouTube BMW Subaru Renault Driving Safety Videos xcar renault megane xcar films renault megane rs

2015 BMW i8 [w/video]

The most important thing to keep in mind while driving BMW's all-new i8 is that it's not a product of the company's vaunted M division.
Sleek sports-coupe design, carbon-fiber construction and blistering acceleration may cause automotive enthusiasts to drool, but the i8 has not been conceptualized, engineered or assembled to be another one of BMW's world-class track stars. Instead, the i8 has been hatched as a progressive sports car from the Bavarian outfit's new i division, which "represents visionary electric vehicles and mobility services, inspiring design and a new understanding of premium that is strongly defined by sustainability." Think of it as thrilling, but with an engaging environmental twist.
It's nearly impossible to walk up to the i8 with stopping twenty feet short and taking in its styling. There's no other production car as visually fascinating - this BMW is showroom-ready sculpture that captures all of the essence of the Vision Efficient Dynamics Concept that wowed crowds at the 2009 Frankfurt Motor Show. The wind sees it as a 0.26 drag coefficient, but humans will study its beautifully crafted carbon fiber and glass panels and realize they're in the presence of the future.