W/1sb 3.6l on 2040-cars

Auto blog

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.

GM outlines strategy for new products, growth in China

"Our strategic plan is a pathway to earn customers for life and create significant shareholder value in the process." - Mary Barra
General Motors laid out ambitious plans on Wednesday to become the world's "most valued automotive company," a goal it says it can reach by strengthening its business in China, rebuilding the Cadillac luxury brand and fixing the foundering GM Europe operations.

Cadillac V-Series Academy comes to Las Vegas [w/video]

General Motors has added another high-speed education course to the curriculum at the Spring Mountain Motorsports Ranch outside of Las Vegas, Nevada. The desert track already hosts the Ron Fellows Performance Driving School with Chevrolet Corvettes, including the ZR1, and they've just added the Cadillac V-Series Academy.
Open now, the one- and two-day performance driving school teaches "the finer points of high performance driving" using the 556-horspower instructional aids known as the CTS-V sedan, coupe and wagon. This is different than than using the CTS-V at the Monticello Motor Club on the east coast - that's part of a sponsorship deal that Cadillac has with the track. The driving course at the Motorsports Ranch is its own program that was developed by Fellows, and we have no reason to think the Cadillac edition won't be just as thorough and enjoyable as the one with Corvettes.
Unlike the 'Vette edition, however, it doesn't appear that you get an invitation to the program if you buy a CTS-V model. Classes are capped at 12 participants and run $1,295 for a single day, $2,295 for two days. There are a video and a press release below with more info.