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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.

2020 Lincoln Corsair First Drive | Compact 'American luxury'

SAN FRANCISCO — Lincoln almost left the building. Word is that former Ford CEO Alan Mullaly, who had come from the airline business and did not have any special affection for historically significant auto brands, was ready to kill off Lincoln after Ford divested itself of its European luxury portfolio. Other Ford executives were able to persuade him to keep it, but then had to come up with a way to make the division relevant. Selling warmed-over Fords wouldnÂ’t cut it going forward, and attempting to emulate the Germans (as Cadillac has tried to do) didnÂ’t seem viable. It was decided Lincoln would proffer “American luxury,” but what did that mean? The 2020 Lincoln Corsair is the latest answer to that question. Like its preceding bigger siblings, the Navigator and Aviator, it offers true design differentiation from Ford with a look all LincolnÂ’s own, and an emphasis not just on luxury features but a better ownership experience. Proper names are back too, which is why we're reviewing the "Corsair" and not the second-generation MKC. Like that predecessor, the Corsair shares its architecture with the Ford Escape, albeit the all-new version. Despite their common bones, none of the body panels are the same. Instead, the look is right at home with the brandÂ’s larger SUVs, featuring many of the same styling cues that include the now-familiar Lincoln grille, gently tapered roofline, blacked out pillars and long, slim taillights  The Corsair has more sculpted flanks and a more pronounced shoulder, but the resemblance to the Aviator in particular is strong, and it's no surprise that both SUVs were penned by the same man: Kemal Curic, who has now ascended to the head design spot at Lincoln. Compared to the MKC, overall length is 1.4 inches greater, the wheelbase is 0.8 inch longer, and the vehicle is 1.1 inches lower. That puts the CorsairÂ’s exterior dimensions between the Audi Q3 and Q5 or the BMW X1 and X3. Its closest dimensional doppelganger is the Cadillac XT4, which will likely be its closest rival. The CorsairÂ’s interior echoes the exterior design with a horizontal theme that makes the cabin feel bigger. Vents stretch across the dash, and above them (in the Reserve model) is an inset band of striped silver metallic trim. The center stack floats above the console, making for an airier environment and leaving room for additional stowage, which is plentiful.

Lincoln considering giving cars real names again

Enthusiastic reaction to the Continental concept might be the death knell for Lincoln's alphabet soup of monikers. "Without divulging the future, we're very excited about the Continental name and the attention it's gotten," Ford President of the Americas Joe Hinrichs said to Automotive News. Hinrichs admitted that the current MK names could confuse those not familiar with the models. Hinrichs suggested that one way Lincoln might differentiate itself was to "leverage its heritage." While this is certainly nothing explicit, the talk could be an indication of an upcoming overhaul for the brand's naming scheme. The Continental is set to hit the market next year as a replacement for the MKS as the company makes a major push into China. Lincoln bosses reportedly gave the designers the model name as inspiration for what to create. The brand's health has slowly been improving since former Ford CEO Alan Mulally was ready to completely kill the brand. Last year, a new boss was appointed to the helm, and there were reports of a modular platform under development. Let us know in Comments what Lincoln names you want to see revived. The Town Car is likely the best-known model from the brand after the Continental, and Zephyr has fairly recent history as the brief moniker for the MKZ. Related Video: