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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.

2014 BMW M5 facelift shows up online

Is it that time already? Like its predecessors, the current BMW M5 has been endangering US licenses since it first went on sale here in 2012, but its design became a known quantity back at the 2011 Frankfurt Motor Show. Apparently that also means that the F10 generation has already grown tired enough to the "Must Have Latest Set" who can afford these sorts of super saloons that a facelift is in order.
If these leaked images sourced from Autocar are anything to go by, BMW stylists have used a predictably light hand to rework their hottest 5 Series, with a revised grille that echoes the M6 along with modestly resculpted headlamps. The rear end appears wholly unaltered. Interior changes gleaned from a look at the cabin photos include an updated touchpad-equipped iDrive controller and a new steering wheel cribbed from the M6.
No new word on changes to the 4.4-liter, twin-turbo V8 powertrain, but in late April, we heard that BMW was readying new competition packages for the M5 and M6. The packages are said to include 15 more horsepower, revised suspension and steering, along with new wheels and blackened exhaust tips. Given that BMW is known for habitually underrating its cars' horsepower outputs (particularly its M models) we can't help but wonder if its engineers will need to do anything other than wave a magic wand to corral those extra ponies underhood...

Apple Watch watches your BMW i3, i8

Apple unveiled details about its long-awaited Apple Watch yesterday and we now know that the $349, er, watch will be released to the public early next year. Amid the millions of features the watch has is the ability to provide real-time information on the battery charge level in a BMW i3 or i8 plug-in vehicle. The watches can also help locate the vehicles if, say, they're parked in a crowded lot. Because so many of us lose our Bimmers on a daily basis. BMW spokesman Dave Buchko confirmed the integration of the Bimmer-centric features on Apple Watch to AutoblogGreen, and noted that the product will let users monitor heating and air-conditioning as well as remotely unlocking the car. "This latest device has the potential to change how owners interact with their BMW, paving the way for a new level of personalization and immediacy," Buchko said. The new wrist-based connection allows for a nice bit of exposure for the German company's new i series. As of the end of last month, BMW had sold 2,082 i3 battery-electric vehicles in the US since starting domestic sales in May. It also sold nine of i8 plug-in hybrids in August, the first partial month for US sales.