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BMW discussing new plant with Mexican authorities

Drawn in by low wages and manufacturing costs, BMW could be the next automaker to set up a manufacturing facility in Mexico. Automotive News is reporting that the German automaker has had discussions with local Mexican governments regarding a possible assembly plant, but there is no word as to when a decision may come down. Last we heard, BMW was reportedly looking to build the 3 Series in Mexico.
A key determining factor for this new plant is a free-trade agreement between the US and Europe, which according to the article, would give BMW better "flexibility and cost structure" to open another plant in North America. In terms of luxury automakers, Audi is currently building a new plant in Mexico and Mercedes-Benz is considering opening one in conjunction with Nissan for the CLA-Class, and in the bigger picture, Honda and Mazda are also preparing to kick off vehicle production in Mexico.

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 denies collaborating on Apple Car

BMW and Apple already have a few possible partnerships coming in the future. For example, the Bavarian brand is likely using CarPlay at some point, and there may be an Apple Watch app for the i3 and i8 eventually, too. However, there is absolutely no plan for the German company to collaborate on the oft-rumored Apple car, the automaker says. The rumor of this shared development first cropped up in the German magazine Auto Motor und Sport, according to Reuters. The report claimed that the Apple cars could be sold from Apple Stores but serviced at BMW dealers. "We are in regular talks with companies from the IT and telecommunications sector, including Apple, concerning topics like connected vehicles. Developing or building a car is not a topic of these discussions," said a BMW spokesperson responding to the allegations to Reuters. The Apple car has been a scorching hot topic as of late. The tech giant reportedly has assigned around 200 people to the project, including former employees from Tesla and A123 Systems. The EV model could be ready as soon as 2020, according to some stories. This latest collaboration rumor seems especially dubious when you consider BMW's investments to develop the i3 and i8, though. With more models possibly on the way, it doesn't seem to make much sense to take on a development partner so late in the game. Last year, there were similar stories about a deal between the automaker and Tesla, which were also dismissed.