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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, Mini to offer Amazon Alexa in all models beginning next year

Voice recognition has been available in cars for years now, but the technology has improved, and found its way into our pockets and our homes. With applications like Siri and gadgets like the Amazon Echo essentially acting as digital personal assistants, the ways we interact with technology through our voice have advanced significantly in recent years. BMW plans to take advantage of the evolved voice technology, and will offer Amazon Alexa in every BMW and Mini model beginning in the middle of 2018. Drivers will be able to use the usual Alexa features (or "skills" in Amazon speak) to get the latest news and weather, provide entertainment, or remotely control their smart home gadgets. Alexa will also perform car-specific duties, such as navigation or locating nearby businesses. Users can also check on movie times, request specific playlists or even order products from Amazon through Alexa. View 5 Photos It's the logical next step for BMW, which has allowed owners to check the status or control features of their car through Alexa's BMW Connected skill since last year. Users won't need to bring their smartphone along for the Alexa to work, as BMW and Mini models will be equipped with their own SIM cards. Alexa will be available in cars in the United States, United Kingdom and Germany. As our friends at Engadget point out, the timing is important, as Amazon risked being left behind by the likes of Apple and Google, which offer their technology in vehicles via Apple CarPlay and Android Auto. Amazon would do well to expand access beyond the three markets in-car Alexa will launch in, for exactly the same reason. Check out the video above for how BMW envisions users interacting with Alexa. We really hope some lucky M4 owner does, in fact, actually order a pizza while drifting on the deck of an aircraft carrier. That's a future we want to live in. News Source: BMW, Engadget Auto News BMW MINI Technology Videos Amazon Amazon Alexa alexa

Car and Driver 10Best list cracked by Tesla Model S, BMW 3 Series left off

Car and Driver is keeping new blood pumping into its annual 10Best cars list with three new entries making it on for 2015 and a perennial favorite falling off. Among the biggest shocks this year is that the BMW 3 Series and 4 Series are no longer named, despite years of some portion of that lineup earning a mention. In another surprise, the Tesla Model S (specifically in S 60 trim to fit under the $80,000 cost cap) makes it to the 2015 roster and is the only electrically motivated member of the group. Despite the loss of the 3 Series, BMW isn't entirely shut out this year, because the M235i gets its name on the list. Car and Driver argues that the little coupe feels like a welcome throwback to the E46 chassis M3 of the early 2000s. In addition to the Model S, the final newbie to the annual group is the 2015 Ford Mustang GT. The inclusion of these new members knocks the Audi A6/A7 family and Ford Fiesta ST out from the 2014 rundown. The other seven models carry over from last year, including the Cadillac CTS, Chevrolet Corvette Stingray, Honda Accord, Mazda3, Mazda6, Porsche Boxster/Cayman and Volkswagen Golf/GTI. The 2015 10Best cars list certainly seems to have something for everyone from the hot hatch fan to the family man and even the green car driver, thanks to the addition of the Tesla. Head over to Car and Driver to read its detailed explanations for each vehicle's inclusion, but if you've got a difference of opinion or just really like the list, let us know in Comments. Featured Gallery Car and Driver 2015 10Best Cars List View 10 Photos News Source: Car and DriverImage Credit: Car and Driver, BMW, Cadillac, Chevrolet, Ford, Honda, Mazda, Porsche, Tesla, Volkswagen Auto News BMW Cadillac Chevrolet Ford Honda Mazda Porsche Tesla Volkswagen Convertible Coupe Hatchback Performance Sedan 10Best