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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

BMW, Mini aim to sell million cars off new FWD platform

Mini sold 301,526 cars in 2012; BMW sold 1.54 million of its own models. According to a piece in Autocar, analysts say the coming UKL1 platform that will form the skeleton of the third-generation Mini Cooper and coming front-wheel drive BMW 1 Series could be responsible for "more than 900,000 cars per year" all by itself.
That sale fire is fueled by the UKL1 wearing up to twenty-three bodies in total between the two brands, 11 for Mini and 12 for BMW, rendering hatchbacks, sedans, coupes, convertibles, wagons, crossovers and people-haulers from about 12.5 feet to 14.5 feet. In April the VP of Mini USA said we might find some current models don't make it to a next generation, but a graphic accompanying the Autocar story has them all there. If it's correct, then those 23 models will only base model lines and don't account for different engines and four-wheel-drive options for each model.
The big changes that would perhaps mean big sales for the Mini line are a five-door hatch with two smaller rear doors for children, the sedan talked about last year for Asian markets and an MPV perhaps wearing the "Traveler" name that could send the Countryman in a more SUV-like direction.

BMW could expand 'i' lineup

Well, this isn't exactly a surprise. BMW CEO Harald Krueger (shown above) has hinted that the i3 electric car and the i8 plug-in supercar could soon be blessed with a bouncing brother, perhaps in the form of the oft-rumored i5. Specifically, Krueger told Frankfurter Allgemeine Sonntagszeitung (as reported by Automotive News) that there was certainly room in the middle of the i sub-brand's current two-model lineup "from the number point of view." The exec declined to offer any additional information. Unlike the i3 and i8, which are their own unique products independent of the rest of the BMW range, the i5 will allegedly be based on 5 Series sedan. It would also eschew the all-electric approach of the i3 in favor of a new and different version of the plug-in hybrid powertrain used in the i8. Rather than that car's turbocharged, three-cylinder gas engine, 129-horsepower electric motor, and 357 total system hp, the rumored i5 – according to our most recent report – would be significantly more powerful. There are rumblings that the new model would have anywhere from 544 hp to 640 hp, with at least two electric motors (one on each axle, making it effectively all-wheel drive). On top of the high performance, the i5 will have no issue running on EV power. According to one report, there'd be up to 78 miles of electric range, and would run purely on electricity up to 36 miles per hour. Even then, the gas engine would only join the party when under hard throttle. What do you think? Will BMW come out with a four-door PHV that could potentially outrun the current M5? Have your say in Comments. Related Video: