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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.

2017 Acura NSX #001 is finally here | Autoblog Minute

The first 2017 Acura NZX rolls off the line in Ohio and Lincoln may be ditching some initials for a classic nameplate. Senior Editor Greg Migliore reports on this edition of Autoblog Minute. Show full video transcript text [00:00:00] The first 2017 Acura NSX rolled off the assembly line this week in Marysville, Ohio. Marking the return of the iconic supercar. VIN #001 went to Nascar Owner Rick Handpick. He paid $1.2M at auction for the first NSX. The proceeds went to charity. The 2017 NSX uses a twin turbo V6 teamed with three electric motors to make a total of 573-hp and 476-lb.ft of torque. The supercar also runs a nine speed dual clutch transmission and AWD. The starting price is $157,800 but you can option this thing out to well over $200k. Ford Motor Company applied this month to get the rights to the trademark for the word Zephyr. Lincoln is using some real names again aside from these MKC and MKX things that don't mean a lot to the general public. The Navigator is going strong and a new one comes on next year. Plus it brought back the Continental which was a well revived move. So Zephyr should ring a bell it was used in the 1930s and 40s, it was also used a little less memorably in 2006 on a Lincoln model that was essentially a rebadged Ford Fusion. Here's the take away: we think the MKZ might be rebadge as the Lincoln Zephyr. For Autoblog I'm Greg Migliore. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. Acura Lincoln Coupe Luxury Performance Autoblog Minute Videos Original Video trademark Lincoln Zephyr

Ford and Lincoln recall roundup: Explorer, F-350 Super Duty, Aviator

Ford and Lincoln released information on a flurry of recalls this morning. There are three in total, and they span different models and separate issues. Those models include the 2013-17 Ford Explorer, 2020-21 Lincoln Aviator and 2020-21 Ford F-350 Super Duty. We’ll organize these three in order of most cars recalled. 2013-17 Ford Explorer This recall includes a substantial 774,696 vehicles, of which 676,152 are in North America. Why? Ford says these vehicles “may experience a seized cross-axis ball joint that may cause a fractured rear suspension toe link.” The diminished steering control that would follow could increase the likelihood of a crash, Ford states. Only vehicles that spent time in high corrosion states should be affected, Ford says. That means places that lay salt down, experience cold weather and high humidity. Owners of these vehicles will need to take their car into the dealership, where it will be inspected to determine if it needs work. If so, Ford will replace the cross-axis ball joint/knuckle, then replace the toe links with a newly-designed part. Notifications to owners of these vehicles are scheduled to be sent out the week of August 23.  WeÂ’ll note that Ford is reporting six “allegations of injury” related to this issue. For those who donÂ’t live in the high-corrosion states/their car was never registered in those states, Ford is offering a customer satisfaction program in case you were interested in having the work done anyway. 2020-21 Lincoln Aviator Lincoln is pulling back 40,995 new Aviators due to an improperly secured battery cable wire harness. This recall applies to gasoline-only versions of the Aviator, so Grand Touring PHEV buyers neednÂ’t worry. The wire harness may contact the AC compressor pulley due to it being secured improperly. Ford says that over time, the pulley could rub through the wire harnessÂ’ insulation, resulting in a short circuit and ultimately a fire. However, Ford is not currently aware of any injuries or fires related to this concern as of now. When you bring your car in, the dealer will inspect all the parts to determine what needs to be done. Fixes range from a basic tie strap to keep the harness away from the pulley (if it hasnÂ’t made contact yet), to replacement of the wire harness and AC belt if the contact has caused damage. Owners should expect to be notified the week of July 30 if their Aviator is involved in the recall.