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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 heads for the waves with Path 22 concept bike

BMW has been reminding us in the grandest of style recently of the serious clout it has in the classic motorcycle field. Most important is the R NineT that it put into production, but it's also been giving us a steady stream of enticing concept bikes, like the Concept 90 retro racer and the more recent Concept 101 custom bagger. And now it's showcasing another. This time, BMW Motorrad has taken a page out of the scrambler playbook with the Concept Path 22. Based on the R NineT, this concept bike is designed for surfers in impressive 1950s style. It features a single-side swing arm rear suspension, a classic circular headlamp, reprofiled tank and seat, studded tires, an oversized front wheel, longer fork travel, and a raised exhaust. It also has a unique paint job by Ornamental Conifer, and a pair of surf boards designed by Dyer Brand and mounted to a collapsible bracket on the side. Meant to showcase just one possibility for customizing the R NineT, the concept bike is named (and numbered) after one of Europe's premier surfing spots. It is being unveiled – appropriately enough – at the Wheels & Waves Festival in Biarritz, France. BMW Concept Path 22 – The Expression of Freedom. Munich/Biarritz. From June 11th - 14th 2015, the Wheels & Waves Festival celebrates for the fourth time a unique meeting of custom bikes, surfing and art in Biarritz. The festival is a great event that provides a straightforward opportunity for people to get together in a unique atmosphere and express their lifestyle of freedom and individuality. In this special setting, BMW Motorrad presents the BMW interpretation of a scrambler for the first time: the BMW Concept Path 22. Expression of a Lifestyle. The first scramblers in the 1950s were modified road machines with deep-treaded tyres, somewhat increased spring travel and a raised exhaust for off-road riding. These features gave the bikes a characteristic appearance that came to symbolise an attitude. "A scrambler is the perfect match for Wheels & Waves. It's the epitome of a motorcycle beyond established standards and conventions. Performance specifications are not so much of interest - style and originality all the more so. Scramblers express passion and are as varied as their owners. The Concept Path 22 is our own interpretation based on the R nineT. The latter is the perfect basis for a scrambler conversion", explains Edgar Heinrich, Head of BMW Motorrad Design.

YouTube viewers prefer BMW

BMW owners sometimes get a bad rap as being snobbish, rude drivers, but according to a new study by the online marketing company ZEFR, Bimmer aficionados also have a close relationship with the brand's vehicles. With well over 4 billion YouTube views, the German automaker is the industry's king of the road online. Making the popularity even sweeter for marketers, 95 percent of those clicks are for fan videos, which represents loads of free advertising. BMW isn't the only automaker with such an extensive following. Honda comes in a close second with around 4 billion views, and Mercedes-Benz is just a little behind it. Among all brands, it's the norm for fan-made videos rather than the official ones to get the lion's share of the clicks, generally 95 percent or more. "YouTube has become a treasure trove for connecting with the right people for automakers," Dave Rosner, ZEFR marketing boss, said to Automotive News. Beyond just a popularity contest among brands, automotive videos are big business on YouTube, according to ZEFR's research. Enthusiasts are leading the way, too. Racing is by far the most-watched category with 895,000 clips generating a staggering 8.2 billion views. Classic cars are also a very hot topic with 305,000 videos getting 1.6 billion clicks. Surprisingly, when it comes to watching auto videos, sedans are most popular on YouTube with over 9 billion views, according to Automotive News. Meanwhile, SUVs, performance vehicles, and pickups were each around 3 billion or less. You can check out the full study for yourself, as a PDF, here. Related Video: