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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.

Aye Captain! Hennessey's 2018 Lincoln Navigator has 600 HP

Texas tuner John Hennessey wants to steer the 2018 Lincoln Navigator into some serious performance SUV waters, presently dominated by the Mercedes-Benz G-Class and Range Rover SVR. Upping the power of Lincoln's range-topping sport-utility, from 450 horsepower to an even 600 hp, is enough to hustle the Navigator from 0-60 mph in 4.8 seconds and run the quarter mile in 12.9 seconds at 107 mph. In terms of the 0-60 sprint, this performance upgrade nets you about 0.7 seconds versus the stock model. Good to know, in case you're hot to run a Navigator at your local drag-strip. "The 2018 Navigator is a world-class luxury SUV and we wanted to take its already impressive power and performance to the next level," said president and company founder, John Hennessey. So, what exactly has been done under the hood? The key to the performance improvements is better breathing, courtesy of a HPE600 twin-turbo engine upgrade. Using the Navigator's twin-turbo 3.5-liter V6 as its base, Hennessey adds a new engine management computer, a stainless steel exhaust system, high-flow air induction, and a large front-mounted intercooler with blow-off valve. Hennessey's six-wheel VelociRaptor, which uses the same base engine, produces 602 hp and 622 lb-ft of torque. Optional extras include 22-inch forged alloy wheels, a lowering kit, and Brembo brakes at the front and rear. Those brakes might not be a bad idea, especially considering this 600-hp motor is attached to approximately three tons of SUV that will, eventually, need to be stopped. This performance package rings in at $19,950 (including installation) and comes with a 3-year/36,000-mile warranty from Hennessey. Only 200 examples will be built for the 2018 model year. While not quite as crazy as the VelociRaptor, this Lincoln is also only about one-third the price of that monster truck. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Aftermarket Lincoln SUV Luxury Performance Hennessey lincoln navigator

Lincoln to resurrect old nameplates for China?

Judging by the success that many luxury automakers are currently experiencing in China, it's no surprise that Lincoln plans to take advantage of the situation by peddling its wares across the Pacific. Lincoln will open its first Chinese dealership next year, but potential buyers there won't be mucking through the same alphabet soup of car names found in American showrooms. USA Today reports that Ford's luxury car division could revert back to legacy names (like Continental and Zephyr) in China while keeping the MK_ names here in North America.
In speaking to Ford exec Jim Farley during the LA Auto Show, USA Today says that Lincoln could switch its naming structure as models are refreshed. Farley didn't confirm that the naming revamp would be a China-only decision, but article leaves little hope that American buyers will get to see the return of classic names anytime soon.
Why would Ford rehash old Lincoln names for China only? Buyers there seem to have a better historical associations with the nameplates than in the US. Chinese also still hold Lincoln in high regard, associating the marque with use by prominent government officials.