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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.

Daily Driver: 2016 Cadillac ATS-V Sedan

Daily Driver videos are micro-reviews of vehicles in the Autoblog press fleet, reviewed by the staffers that drive them every day. Today's Daily Driver features the 2016 Cadillac ATS-V sedan, reviewed by David Gluckman. You can watch the video above or read a transcript below. And don't forget to watch more Autoblog videos at /videos. Show full video transcript text [00:00:00] Hey, it's David Gluckman with another Daily Driver. Today I'm driving a 2016 Cadillac ATS-V. This is the sedan model and it has the optional eight-speed automatic transmission. The ATS-V is the small performance car in Cadillac's lineup. It sits below the CTS-V, which is also new for 2016. Ever since the base ATS came out a few years ago, this has always been a wonderful chassis in search of a great engine to compliment it. This car really changes that. [00:00:30] They've dialed up the chassis, the suspension is a little stiffer, the body is even stiffer, and they've put this really nice 3.6-liter twin-turbo V6 engine under the hood. In terms of power and torque, the new V6 outguns it's main bogey, the BMW M3 and M4. The Cadillac engine puts out 464 horsepower and 445 pound feet of torque, which is tons. [00:01:00] The one issue, though, is the way it delivers that power. It's not as smooth as the BMW and there's a bit of turbo lag that you really don't feel in the German engine. Once you get moving, however, this engine really just wakes up. There's no lag once you're at highway speed. You can floor it and there's plenty of power and torque for easy passes and runup to extra-legal speeds. [00:01:30] It's tons of fun there but around town it just kind of lacks a little bit of the smoothness and responsiveness that we're kind of expecting for a car in this class. The engine does sound pretty nice, though. It has this nice little growl when you start it up and when you get on it, it actually sounds more like a supercharged engine than a turbocharged one. It's a little strange, I think that's maybe some active noise cancellation that Cadillac is doing to cancel out the whooshes and whirs that we're used to from a turbocharger. [00:02:00] That's fine with me. Whatever it is, it sounds good. This car gets the same fancy rear limited-slip differential that the Corvette introduced a couple years ago. It does a really good job of keeping everything manageable. You almost can't tell that the car has 464 horsepower. It keeps everything in line.

2014 Cadillac CTS debuts new design, twin-turbo power, Vsport model [w/video]

If ever there were a Cadillac to truly rival the world's best, this could be it.
With every new model, Cadillac indeed gets closer and closer to actually performing at the top of its class, rivaling those crafty Germans at their own sport/luxury sedan game. The best example yet of Cadillac's efforts to challenge the world came last year, when we met the 2013 ATS - a vehicle that we praised for its on-road dynamics and interior refinement, and later went on to be named North American Car of the Year.