1958 Cadillac Eldorado Brougham 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.

New Takata problem results in recall of 414 GM vehicles

An airbag-inflator rupture discovered by Takata during testing has resulted in a new recall affecting 414 vehicles from General Motors, including 395 of them in the US. This latest campaign covers 2015 model-year examples of the Buick LaCrosse, Cadillac XTS, Chevrolet Camaro, Equinox, Malibu, and GMC Terrain. There are no reported breaks in any of these vehicles on the road, and the company estimates only one percent of them actually have the faulty parts. According to documents submitted to the National Highway Traffic Safety Administration (as a PDF), one side-airbag inflator failed a cold test at -40 Fahrenheit "releasing high pressure gas and propelling the separated components apart." The supplier told GM about the failure the next day. In these vehicles, the safety device might not only burst but the bag could inflate incorrectly, as well. GM and Takata say that a cause is not yet known, but they are "conducting an investigation." GM will begin notifying affected owners via overnight mail on Oct. 19. Dealers will replace the side airbag modules on all of the affected vehicles with new components outside of the suspect lot. All of the removed parts will also be collected for further study. Takata's faulty front airbag inflators have resulted in a serious scandal for the supplier. Initial figures indicated 34 million US vehicles are need of repair, though more recent figures have knocked that down to 23.4 million bad parts in 19.2 million automobiles. GM was already among the dozen automakers with models to fix, and some of its pickups were affected, along with the Saab 9-2X and Pontiac Vibe. GM Statement: General Motors is recalling 395 cars and crossovers in the U.S. because one of the front seat side air bags inflators may be defective. In the event of a deployment, the air bag's inflator may rupture and the air bag may not properly inflate. The rupture could cause metal fragments to strike the vehicle occupants, potentially resulting in serious injury or death. GM is unaware of any incidents involving vehicles with these components, which were part of a lot in which one inflator failed acceptance testing at the supplier. Dealers will replace the side air bag module or modules in affected vehicles. Including Canada, Mexico and exports, the total population of the recall is 414, GM estimates 1 percent of the recalled vehicles may have the defect.

Ghostbusters' new Ecto-1 is an oddly uninspiring '82 Caddy

The Ghostbusters, or at least the movie franchise, will emerge from Hollywood's cobwebs this summer, but instead of the iconic 1959 Cadillac known as Ecto-1 that delighted big screen audiences in 1984, the new model may leave some scratching their heads. That's because this latest Ghostbusters draws its vehicular inspiration from a decidedly less interesting period in American automobile production: the 1980s. Starring alongside Kristen Wiig, Melissa McCarthy, Kate McKinnon, and Leslie Jones is a 1982 Cadillac DeVille hearse. The studio dressed up this tired Caddy to look the part, but something's amiss. Instead of the flamboyant fins and shiny chrome, the '82 is decidedly pedestrian and uninteresting. Even in 1982, it was kind of a dull choice for luxury car buyers. There's a reason Murilee Martin deemed the '70s and '80s the "malaise era." Built a couple of years before the original, Academy Award-winning Ghostbusters hit cinemas, the '82 DeVille represents one of Cadillac's lowest points bar the Cimarron. Under its hood might be Cadilac's new-for-1982 HT 4100 V8 engine, which featured what the brand referred to as "digital" fuel injection. With 135 horsepower and 190 pound-feet of torque, the DeVille didn't win stoplight races back then. Oddly, the V6 engine that came standard in the '82 Sedan DeVille produced the same horsepower but delivered an extra 15 torques, which made it both faster and more fuel efficient than the V8. These were bad times for General Motors, clearly, but the gas engines paled in comparison to Cadillac's first diesel. The company's LF9 5.7-liter diesel V8 was optional on the DeVille and we pity the unlucky buyers who checked that box. Generally credited as the engine that made "diesel" a haunted word in Detroit for 30 years, the 350-cubic-inch unit might actually be fitting for the Ghostbusters. On the bright side, the '82 is new enough that it may have carried a box or two of Hi-C's stellar, Ghostbusters-inspired Ecto Cooler. Maybe the mortician took his kid to Kroger one time, you never know. Fitting in In the original 1984 Ghostbusters, the '59 Caddy was a forlorn and forgotten piece of machinery waiting for a new lease on life. Character Dr. Ray Stantz picks it up and admits in the film that it needs "some suspension work and shocks ...