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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.

Sell your own: 2002 Lincoln LS V8

Looking to sell your car? We make it easy and free. Quickly create listings with up to six photos and reach millions of buyers. Log in and create your free listings. Ford Motor Company has been a global concern almost as long as there has been a 'Motor Company'. And while it is omnipresent in most corners of the globe, few things spoke to that globalization more than Ford's purchase of Jaguar and Land Rover near the end of the last century. And with that purchase came shared platform opportunities, some of which didn't work (Jaguar's X-Type is the most notable, whose platform was shared with the Ford Mondeo), and some that did. We'll focus on one that did: Jaguar's S-Type, whose engineering was common to the Lincoln LS. Sales didn't set the world on fire for either model, but there is something ageless about both; the Jag embraced a neo-classic theme, while Lincoln's LS is almost timeless within its 3-box, slab-sided architecture. This for-sale example, located in Melbourne, Fla., looks to be in nice condition. If the mileage is accurate and the Carfax reasonably clean, it should provide miles and years of motoring pleasure, even if only driving to your rheumatologist. The LS borders on being a quiet collectible, with less obvious pleasure in the viewing, more obvious delight in the driving; that's especially true with this model's V8. And you can put the asking price on most credit cards! Lincoln Car Buying Used Car Buying Buying Guide Ownership Luxury Sedan

BMW M4 versus Audi RS5 | Autoblog Podcast #546

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Associate Editor Reese Counts. We debate the merits of the BMW M4 and the new Audi RS5 and our hopes for the refreshed Mercedes-AMG C63. We also discuss the state of Cadillac, the future of the Ford Fusion and the rumored Mercedes-AMG competitor to the Porsche 718 Boxster and Cayman. Autoblog Podcast #546 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown 2018 BMW M4 versus 2018 Audi RS5 Cadillac and Mercedes-AMG sport coupes The state of the luxury car industry The future of the Ford Fusion Replacement for the Mercedes-Benz SLC Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Design/Style Podcasts Audi BMW Cadillac Ford Lexus Lincoln Mercedes-Benz Convertible Coupe Crossover SUV Luxury Performance bmw m4 mercedes-amg c63