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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 celebrates with M4 DTM Champion Edition

Go back just a few seasons, and Germany's DTM touring car series was a straight-up competition between Audi and Mercedes-Benz. But BMW rejoined the race in 2012, winning both the drivers' and constructors' titles on its first year back and celebrating with a special matte-black M3 DTM Champion Edition. Last season, it won the constructors' championship but not the drivers', and this year it did the opposite. In short, it's been an impressive comeback for the Bavarian automaker, and to celebrate this year's accomplishments, it's followed up with the new M4 DTM Champion Edition for Europe you see here.
Based on the new M4 coupe - which forms the basis for BMW's DTM challenger as well as its pace car - the Champion Edition is distinguished by its special livery: The orange grille frame, the matte black hood and trunk with multicolored stripes, the black stripes along its shoulder and rocker panel, and the blacked-out 19-inch wheels all to pay homage to champion Marco Wittmann's racecar, as does special lettering on the rear windows.
Other enhancements include black front splitter and skirts, carbon front flaps and mirror caps, rear spoiler and carbon diffuser, while autographed sill plates and carbon interior trim with the car's serial number adorn the cabin. Only 23 examples will be offered, symbolic of the number adorning the winning tin-top racer and the flank of this special edition as well.

Did BMW drag its feet on Mini recall?

The National Highway Traffic Safety Administration is opening an investigation into BMW's reporting of a recall for 30,456 examples of the 2014-2015 Mini Cooper Hardtop, Cooper S, and the 2015 John Cooper Works. According to the government, "it appears from a review of NHTSA's databases that BMW may have failed to submit recall communications to NHTSA in a timely manner." The automaker issued the recall in July because crash tests showed the models didn't meet side impact requirements for passengers in the back seat. While there were no reported injuries at the time, the company decided to install energy-absorbing material in the space between the rear interior panels and the exterior. However, NHTSA has decided to investigate whether this campaign should have started much earlier, given the evidence the company had. According to the government's report, the Cooper Hardtop failed side-impact tests in 2014, although one of these tests was five-miles-per-hour faster than the Federal Motor Vehicle Safety Standard. The agency claims: "In January 2015 BMW verbally committed that it would conduct a service campaign to add padding to the rear side panels of MY 2015 Mini 2 Door Hardtop Cooper models. However, BMW did not initiate the service campaign and failed to inform NHTSA of its failure to do so." A subsequent crash test of an example with this fix showed it to make the vehicle compliant with the rules. Mini spokesperson Mariella Kapsaskis told Autoblog: "Regarding the NHTSA audit query, BMW Group is evaluating the request and will respond to NHTSA as appropriate." INVESTIGATION Subject : BMW Reporting & Timely Recall Execution Date Investigation Opened: SEP 24, 2015 Date Investigation Closed: Open NHTSA Action Number: AQ15004 Component(s): STRUCTURE All Products Associated with this Investigation Vehicle Make Model Model Year(s) MINI COOPER 2014-2015 MINI COOPER S 2014-2015 MINI JOHN COOPER WORKS 2015 Details Manufacturer: BMW of North America, LLC SUMMARY: NHTSA is opening this AQ to better understand and evaluate BMW's process(es) for its notification procedures and for timely and efficient execution of its safety recall campaigns. In mid-2014, NHTSA's New Car Assessment Program (NCAP) had side impact moving deformable barrier (MDB) tests performed on two model year (MY) 2014 Mini 2 Door Hardtop Coopers. These two tests were performed at a speed 5 mph higher than required by Federal Motor Vehicle Safety Standard (FMVSS) 214, Side impact protection.