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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.

Cadillac boss: Don't ask why we have so many sedans

Ugh, crossovers. Car-based, high-riding station wagons, for some reason, sell in absurd numbers and make automakers lots and lots of money. That's why automakers with a strong lineup of CUVs are running strong, while sedan-heavy brands are struggling. Cadillac is all too aware of this fact. While the company is preparing to launch the new CT6 luxury sedan, it's also realizing four sedans, a coupe, a crossover, and a $73,000, old-school, body-on-frame SUV does not a healthy lineup make. Worse, though, as Cadillac President Johan de Nysschen rued during the LA Auto Show, is that the new CT6 is joining a segment already oversaturated. While it's a big, expensive vehicle, it's not much bigger or more expensive than the CTS and XTS sedans. "Please don't ask me why we have three cars in the same segment," de Nysschen said, stopping midway through an interview with Automotive News on the CT6's market placement to make the crack. "That's a whole different subject." As for those CUVs, the new XT5 debuted in LA, and it will eventually be joined by another much-needed CUV in 2018, AN reports. Related Video:

Cadillac Celestiq flagship EV shows off its tint-shifting smart roof

GM has high hopes for its upcoming Cadillac Celestiq sedan, slated for release in 2023. The flagship EV is being built to help the brand recapture its reign as “the Standard of the World.” As such, itÂ’s expected to arrive packed to the gills with cutting edge, futuristic technology including an all-glass roof that can adjust its opacity anywhere between crystal clear and completely opaque with the mere flick of a switch. These roofs, dubbed SPD-Smartglass, have been designed and manufactured by Research Frontiers of Woodbury, New York, and are based on Suspended Particle Device technology that was originally created as a replacement for the manual sliding window shades aboard commercial aircraft, Research Frontiers CEO Joe Harary told Engadget. Some of the earliest examples of SPD window treatments can be seen on the 2011 Mercedes Benz SLK roadster and in the 2012 Mercedes S Class coupe, which were used to increase headspace while eliminating the physical window shade screens, as well as various McLaren models over the past decade. As the YouTube video below explains, Research Frontiers SPD tech relies on polyiodide nanoparticles to generate its tint effect. Magic Sky Control Using SPD-SmartGlass Technology “SPD technology is smart glass that allows you to change the tint of the glass,” Harary explained. “There's this film that we invented that has little nanoparticles in it, which you can control with a small electrical voltage. So, basically this film... that allows you to dial in whatever tint level you'd like.”  “The crystals are about three to five tenths of a micron in length and they act as induced dipoles so when you apply an electric field to conductive coatings in the film,” Harary continued, “ the particles will line up, and allow light to pass through. Then, when you remove the voltage, their natural tendency is to be in the dark state due to Brownian movement and that causes the glass to tint.”  As the tint partially blocks incoming photons, it also reduces the amount of glare experienced by the driver and the heat trapped within the vehicle — over 99.5 percent of light and 95 percent of heat, per a January press release from the company. The claim is, this allows vehicle occupants to stay comfortable for longer without having to turn on the A/C, as well as keep the interior up to 18 degrees Fahrenheit cooler overall, Harary said.