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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 previews CT6 interior and its 34 Bose speakers

We get an early monochrome look at the upcoming Cadillac CT6 interior thanks to its stereo system. Bose will debut its Panaray Sound System in the flagship sedan and have 34 speakers located throughout the cabin that will have the occupants bathing in sound. A close look at the interior mock-up shows little visible difference between the CT6 and the praised CTS; the only thing we could find was that the headrests are slightly different and the seat switches have been moved to the doors, a la Mercedes-Benz. As for that Panaray, Bose says it incorporates elements from the company's home and professional audio products, and was designed "exclusively" for this car. We don't know if that means it was tuned for the CT6 or that it will only ever be available on the CT6. Nor do we have any detailed specs on it at the moment, but there's a press release below with a few more tidbits and a high-res graphic above with details on each speaker. Bose Introduces First-of-its-Kind Panaray® Sound System for First-Ever Cadillac CT6 Advanced automotive sound system integrates elements from home products DETROIT, 2015-03-26 – Thirty-five years ago, Bose and Cadillac defined premium automotive audio, forever changing how people listen to music in a vehicle. Now Bose is introducing its most advanced and highest-performing automotive sound system – the Bose® Panaray® system, designed exclusively for the Cadillac CT6 sedan. The 2016 CT6 is a first in its segment, combining the prestige and technology of a range-topping vehicle with the dynamics and efficiency of a smaller one. The Panaray system marks the global debut of Bose Automotive's new line of "Advanced Technology Series" sound systems, integrating technologies and design elements from Bose home entertainment and professional audio products to deliver unprecedented performance in a car. "We asked Bose to create something truly special for this new vehicle: an unbounded sound system, providing an audio experience unmatched in any other luxury automobile," said Travis Hester, Cadillac CT6 executive chief engineer. "Cadillac CT6 customers will be elated by what they hear and feel when they switch on the Bose Panaray system." The Bose® Panaray® system reproduces music with more clarity, precision and deep bass than any system preceding it.

Cadillac ATS Coupe headed for Detroit reveal

Cadillac wouldn't be Cadillac without its two-door models. But the XLR has been discontinued for over four years now, the Elmiraj concept may never see production and the future of the CTS Coupe is still up in the air. That leaves just the ELR, which may not be conventional enough for traditional Cadillac coupe buyers. Fortunately a new coupe is coming along to fill the void.
According to Edmunds, Cadillac will reveal the new ATS coupe just a couple of months from now at the Detroit Auto Show. Expected to mechanically mirror the existing ATS sedan, the new coupe will also more conventionally resemble its four-door counterpart than the CTS, whose coupe version was distinguished by a rakishly sloping roofline.
Expect the same choice of engines to carry over, with a 2.5-liter four serving as the base engine, and both a 2.0-liter turbo four and a 3.6-liter V6 offering more power for those looking for that extra bit of oomph. Following the Detroit reveal, sources anticipate the ATS coupe to go on sale next summer.