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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 prices new ATS-V from $61,460*

It's official, Art & Science students: Cadillac has opened the order books for the new ATS-V, and while it was at it, has told us how much we should expect to shell out for the privilege. Pricing starts at $61,460 for the 2016 Cadillac ATS-V sedan (*plus tax, title, license, dealer fees and any optional equipment). Go for the sleeker (but less practical) ATS-V coupe and you'll be looking at $63,660 (with the same conditions). For all that scratch, you'll be looking at a 3.6-liter twin-turbo V6 driving 455 horsepower and 445 pound-feet of torque through a six-speed manual or eight-speed automatic transmission, for a 0-60 time of 3.9 seconds and a top speed of 189 miles per hour. The ATS-V also features Brembo brakes, magnetorheological dampers, launch control and rev-matching with no-lift shifting. Cadillac has still yet to tell us how much gas its new performance model will guzzle, but it's got time before production gears up in the spring and the online configuration tool launches in April. Cadillac Opens Ordering for 2016 ATS-V Dual-purpose performance luxury compact designed for the track, touring 2015-02-10 DETROIT – Cadillac dealers have begun accepting orders for the 2016 ATS-V – the brand's inaugural luxury compact performance car starting production this spring. Available in sedan and coupe forms, the twin-turbocharged ATS-V offers a dual-purpose luxury performance experience: a car with true track capability straight from the factory with sophisticated road manners. Powered by the segment's highest-output six-cylinder engine – the Cadillac Twin Turbo rated at 455 horsepower (339 kW) and 445 lb-ft of torque (603 Nm) – the ATS-V achieves 0-60 performance in 3.9 seconds and a top speed of 189 mph. The Cadillac Twin Turbo engine is backed by a six-speed manual – with Active Rev Match, no-lift shifting and launch control – or a paddle-shift eight-speed automatic transmission featuring launch control and Performance Algorithm Shift. "The V-Series is the ultimate expression of Cadillac's re-ignited product substance and the passion at the core of our brand," said Johan de Nysschen, Cadillac president. "The ATS-V expands the V-Series lineup, bringing a new kind of performance character to Cadillac. Lightweight, agile and potent, the ATS-V will make an ideal pairing with the larger and even more powerful all-new 2016 CTS-V midsize sedan, which arrives later this summer," he said.

GM Design shows what could have been and what might be

We periodically like to check in with GM Design's Instagram account to see what they're cooking up. Even better is when we catch a glimpse of an alternate history of what legendary designers from The General's past were thinking, though those ideas may not have made it into production. This week, for example, the account posted some illustrations from George Camp, whose career at GM spanned nearly four decades, from 1963 to 2001. One of the renderings is of what appears to be a 1971-72 Pontiac GTO Judge, but with two headlights instead of the production unit's quad beams. The rear departs from the canonical version most dramatically, with a massive integrated wing. Other bits that didn't make the production cut include large side vents, a gill-like side marker and rectangular intakes below the headlights that wouldn't be out of place on a modern design today. Amazingly, from what we can make out of the date, it appears that the drawing was done sometime in 1965, which makes it quite prescient.           View this post on Instagram                       A post shared by GM Design (@generalmotorsdesign) There's also a very aerodynamic interpretation of a Corvette ZR-1. To our eyes it splits the difference between the 1986 Corvette Indy concept and a fourth-generation F-body Pontiac Firebird, so perhaps parts of Camp's work on this sketch did make it into physical form. There's also a radical sports car concept from May 1970 that resembles the Mazda RX-500 concept from the same year, a Syd Mead-looking Cadillac coupe, and an Oldsmobile with a cool take on the company's trademark waterfall grille and elements of the Colonnade Cutlass at the rear. Other recent posts include a FJ Cruiser-like off-road EV, a sleek coupe with the Chevy corporate grille, and a rendering of a Silverado-esque pickup that looks far better than the current production version.           View this post on Instagram                       A post shared by GM Design (@generalmotorsdesign) It's pretty easy to lose hours in the account, but it's always fascinating to see GM's visions of what could have been and what might be. Related Video: