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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.

Mini nixes plans for 7-seater, Countryman to stay largest model

Contrary to popular belief, it seems that Mini's growth plans do have a limit both in size and number of models. During the 2014 Geneva Motor Show, it unveiled the six-door Clubman concept (pictured above) that was 4.4-inches longer and about two-inches wider than even the current Countryman crossover. Mini design chief Anders Warming says that this is the new size limit for its models, and the BMW subsidiary isn't building a larger, seven-passenger vehicle above the current Countryman.
"We won't build anything bigger than the Countryman, not at this moment. You should be able to park a Mini in a city, so a Countryman or this new Clubman is as big as it should be," said Warming to Auto Express in Geneva. Rumors going back to last November, pegged the Mini as developing an even larger vehicle to take on mainstream CUVs.
While Warming is ruling out a bigger Minis for now, a smaller one like the Rocketman concept still might be in the cards. He said that the project has been warmly received but still had to be investigated because "it's a numbers game." So if bigger Minis aren't coming, there still might be a slim chance for a smaller one.

2014 BMW Z4 sDrive35is

The BMW Z3/Z4 roadster has never really had a widespread following because it has either been too humble and small a roadster (albeit with some fun and very low-volume M editions) or it has been - in this E89 generation - too casual an image leader with no racier aspirations. The current 480-hp Z4 GTEs don't count, since they are as stock a Z4 as today's Pamela Anderson is the same blonde actress we knew as Heidi on Home Improvement. You know, sort of like those ever-so-slightly modified Toyota Camry coupes competing in NASCAR.
The ultimate highpoint for the BMW Z roadster franchise was at the very start of its life in the mid-90s, in the James Bond film GoldenEye with Pierce Brosnan. The Stinger missiles that Q's team installed behind the Z3's headlights were never fired, and BMW never even offered this self-defense package as an option. Yet another case of the ol' bait and switch.
And in all these subsequent years of Z3s and Z4s strutting their long-hooded stuff, the little sporting Bimmer could really have used a live Stinger missile or two to spice things up. The current Z4 exists, it is pretty dang sexy, and BMW seems content to let it linger there. We just drove the new midlife version of the roadster near BMW headquarters in Munich, and it served to reinforce our feelings.