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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 4 Series production coupe caught on commercial shoot

Despite filming at 2:00 AM and at an undisclosed location, BMW minders filming a commercial for the fast-approaching 4 Series coupe were unable to ward off the long lenses of spy photographers. The result, as you can see here, is our first-ever look at the production version of BMW's new coupe, completely uncovered.
The night shots may be a little bit grainy, but the fast-moving 4 Series still looks pretty good with its camo closeted, matching the svelte lines of the concept car we saw in Detroit this winter. Expect that the 4 coupe will come to market with a turbocharged 2.0-liter four-cylinder in 428i trim, and a turbocharged 3.0-liter six-cylinder in 435i spec.
Take your time looking through our gallery of movie-star 4 Series photographs, and tell us what you think about the uncovered Bimmer, in comments.

BMW i8 fully revealed ahead of Frankfurt debut

It may be early in the morning here in the US, but in Germany, the first day of the 2013 Frankfurt Motor Show is in full swing. BMW took advantage of the early start and showed off its long-awaited i8 plug-in hybrid sportscar, a two-plus-two, swan-wing-doored coupe, to the Frankfurt crowd.
We drove a BMW i8 prototype back in August, so many of the things we're reading today are clarifications on our initial suspicions or speculations. Underhood sits a 1.5-liter, turbocharged, three-cylinder engine. On its own, it churns out a respectable 231 horsepower and 236 pound-feet of torque, which is then channeled to the rear wheels by way of a six-speed automatic transmission. An electric motor, meanwhile, sends 131 hp and 184 lb-ft of torque through a two-speed automatic to the front wheels.
With all-wheel drive at its disposal, the total system power sits at 362 hp and 320 lb-ft of torque, and allows the i8 to scamper to 62 miles per hour in just 4.4 seconds. That excellent performance is offset by an estimated fuel economy figure of 94 miles per gallon, though, making this a fast and efficient vehicle. Charging is impressively fast on the i8, with a full charge coming from a 110-volt outlet in under four hours. A BMW Charging Station will trim the charge time down to 1.5 hours.