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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.

Motor Trend first to compare Jaguar XE and BMW 3 Series

How many automakers have loaded up how much ammo and taken how many shots at the BMW 3 Series? Yet here we are, decades on and at least a decade away from the 3 Series' halcyon days, waiting for someone to give the sport sedan something beyond a flesh wound. In this most recent episode of Head 2 Head, Johnny Lieberman goes to Spain to figure out if the Jaguar XE is the sedan to do it. Here the champion wears the guise of the 335i M Sport, powered by a 3.0-liter, turbocharged, inline-six with a square 300 horsepower and 300 pound-feet of torque run through a ZF eight-speed transmission. After a short time behind the wheel Lieberman quotes from a familiar hagiography, saying it's evident "just how great this car is and why it defines the segment." The all-aluminum challenger from Jaguar comes in XES trim, meaning a 3.0-liter, supercharged V6 with 340 hp and 332 lb-ft. It uses the same eight-speed transmission as the BMW, but with different programming. According to the specs in the video, some of which are manufacturer estimates, the Jaguar is heavier, more expensive, and much thirstier at the pump. Away from the spreadsheet, Lieberman holds that the XE looks better and feels more special inside. In case you're wondering, the comparo was done before MT could get its mitts on the 320-hp BMW 340i. Lieberman says the English company spent its money on the XE suspension and it shows, but there have been other efforts from other automakers with excellent dynamic chops that weren't enough to threaten the BMW. His final assessment is that one of the two cars is awesome, and one is quite a bit better. Watch the video to find out which is which. Related Gallery 2016 Jaguar XE View 74 Photos Related Gallery 2016 BMW 3 Series Refresh View 57 Photos News Source: Motor Trend Channel via Carscoops, YouTube BMW Jaguar Luxury Performance Sedan motor trend jaguar xe head 2 head

Car dealers, factories and ports close in the path of Hurricane Florence

Hurricane Florence has caused CarMax to close four stores in North Carolina, South Carolina and Virginia. The closed locations are in Myrtle Beach, Charleston, Winterville and Virginia Beach. It is possible for the company to close more stores, reports Automotive News. Daimler and Volvo have also shuttered their manufacturing facilities in the region to prepare for Florence. The storm is expected to reach North Carolina and South Carolina today or tomorrow. Automotive News says every coastal car dealer it reached on Tuesday was closing, and others not in the projected landfall area were monitoring the situation. There are approximately nine million vehicles in operation in the area that Florence is expected to hit, with a vehicle density of 162 vehicles per square mile. It is likely that not as many vehicles will be lost as during hurricanes Harvey and Irma, as population is less dense; areas affected by those storms had over 300 vehicles per square mile. The chief economist of Cox Automotive told Automotive News that some 20,000 to 40,000 vehicles could end up flooded if Florence keeps its path; however, recent reports have indicated Florence has weakened to a category 2 hurricane on Thursday. Tesla has again unlocked more range for some of its older models to make evacuation easier; the same was done a year ago in preparation for Hurricane Irma. As well as automotive manufacturers and dealers, automotive transport providers are readying for the storm and clearing cargo away. The container and auto terminals at Port Charleston will be closed from Thursday to Saturday, affecting part shipments to the BMW manufacturing facility in Spartanburg; BMW's spokespersons have said no production disruption is expected. Parts are delivered via railroad to Spartanburg by Norfolk Southern, which is also suspending operations for the time being. Vehicle hauler United Road has moved its rigs to safer regions and suspended deliveries, and car carrier vessels are trying to make it away from the storm's path in time. Related Video: News Source: Automotive NewsImage Credit: NASA via Reuters Auto News Plants/Manufacturing BMW Mercedes-Benz Volvo Car Buying