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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.

Lincoln Continental death looms with changes at Flat Rock Plant

Ford's Flat Rock Assembly plant just south of Detroit produces the Ford Mustang and the Lincoln Continental. Automotive News reports that the automaker plans to produce two battery-electric crossovers at the facility, the EVs scheduled for sale in the 2023 model year. The EVs were previously meant to be built in Ford's Cuautitlan Stamping and Assembly plant in Mexico, which builds the Fiesta. According to the AN piece, moving the EVs to Michigan means the end of Lincoln Continental production in the U.S. Sunset is expected in "late 2021" for a sedan that is just three years old, and that never got the momentum to assert itself and reassert the Continental nameplate. The Continental has been on death watch since at least March 2018, when Ford Authority reported that the luxury sedan wouldn't get more than one generation. The changing of several guards in the top ranks scotched a plan to move the Continental onto the CD6 platform for rear- and all-wheel-drive vehicles. In September 2018, Jalopnik put more meat on those crossbones, saying Flat Rock workers alleged the big Lincoln could bid adieu as soon as this year, and automaker insiders had seen production merely scheduled — not approved — for 2020, with nothing beyond that. Then, as now, Ford appears to be leaving open the possibility for Continental production to continue in China, and just maybe be exported here. The two twinned midsized EVs, using the codenames CDX746 and CDX747, would come in Ford and Lincoln flavors. Said to be roughly the size of the Ford Edge/Lincoln Nautilus platform siblings, the automaker has requested suppliers gear up for annual production of up to 65,000 units between the two models. When they arrive, they'll form part of the 16 EVs Ford plans to have on the market worldwide by 2022. The others we know of so far are the crossover that will channel the Mustang, an electric F-150 pickup, and an EV project with Rivian.

Ford recalls 2017 Lincoln Continental for headlight problem

Ford Motor Co. is already recalling the 2017 Lincoln Continental for a headlight problem, the automaker announced Tuesday. The HID headlights may have been assembled with LED lens that don't have the correct lens optics to meet federal visibility requirements for turn signals. Ford says it is unaware of any accidents related to the issue. The company will replace the headlamp assemblies, if needed. The safety compliance recall covers 1,876 Continentals built from June 14 to Sept. 23 at Ford's Flat Rock factory south of Detroit. Most of the cars are in the United States; 49 are in Canada, and one is in a federalized territory. Only about 300 cars are in consumers' hands, a spokesperson said. Customers can use a Lincoln service program where dealers will pick up their Continental, fix it for free, and return it, the spokesperson said. Lincoln has high hopes for the Continental. The flagship sedan uses one of Lincoln's most iconic names and features a luxurious interior, available 400-horsepower V6 engine, and safety features like adaptive cruise control and a 360-degree camera. Lincoln recently announced an elaborate marketing campaign shot by renown photographer Annie Leibovitz to generate interest in the Continental. In a separate recall, Ford also said Tuesday that 60 Edges from the 2015-16 model year are being recalled to update their antilock braking system module. Related Video: Featured Gallery 2017 Lincoln Continental Campaign View 12 Photos Recalls Ford Lincoln