1966 Cadillac Deville Convertible on 2040-cars

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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.

2015 Cadillac Escalade

Cadillac has been an interesting story in the auto industry over the past several years. Its comeback bid may be well over a decade old, but it's only recently that the Wreath and Crest has transformed from the auto industry's retirement home into its hot new thing. Today's Cadillac is a powerful marque working to instill passionate design, sound driving dynamics and cutting-edge technology into each model it builds, with vehicles like the ATS and redesigned CTS leading the charge.
Now, its latest model has arrived. This fourth-generation Escalade is among the most important new Cadillacs since the division's renaissance kicked into high gear. It's the brand's de facto flagship, and the first vehicle many young people think of when hearing the name "Cadillac." In the past, the Escalade was the chosen vehicle of the rich, flashy and famous. It's suffered over the past few years, though, particularly as new and more luxurious competitors have come to the fore.
With this latest redesign, General Motors is aiming to retake the spotlight as purveyors of the market's premier luxury SUV. To find out if it's been successful, I ventured down to the South Carolina Lowcountry to test the all-new 2015 Escalade.

GM recalling Cadillac ATS, XTS, Chevy Impala over faulty brake lamps

General Motors has issued a recall covering 1,627 sedans over faulty brake lamps. Both the 2013 Cadillac ATS and XTS are affected by this problem, as is the 2014 Chevrolet Impala.
According to an official National Highway Traffic Safety Administration report, "the brake lamps may intermittently flash without the brakes being applied and the cruise control may disengage" on these vehicles. The report does not state that the brakes themselves are faulty, but rather that "if the brake lamps flash when the vehicle is not slowing, a following driver may not adjust vehicle speed when the vehicle is in fact braking."
This marks the first recall for the 2013 Cadillac ATS, as well as the recently introduced 2014 Chevy Impala. In late 2012, over 12,000 Cadillac XTS models were recalled due to a head restraint issue.