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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.

CES Part 2: Honda/Sony Afeela, BMW i Vision Dee and more | Autoblog Podcast #763

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor James Riswick and Associate Editor Byron Hurd. This week, they pick up from last week and dig deeper into some of the reveals and news coming from this year's Consumer Electronics Show (CES) including the Ram 1500 Revolution, the Afeela EV collaboration from Sony and Honda, Peugeot Inception, BMW i Vision Dee and VW ID.7, among other highlights and musings from the show. They also discuss the cars they've been driving, including the BMW iX, Mercedes EQS SUV, two-door Bronco Badlands, Mazda CX-50 Meridian Edition and Toyota RAV4 Wilderness Edition. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #763 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown CES 2023 Ram 1500 Revolution Sony Honda Mobility Afeela EV prototype Peugeot Inception BMW i Vision Dee Volkswagen ID.7 Cars we're driving 2023 BMW iX 2023 Mercedes EQS 450 SUV 2022 Ford Bronco Badlands Two-Door 7MT 2023 Mazda CX-50 Meridian Edition 2023 Toyota RAV4 Woodland Edition Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: Green Podcasts CES BMW Ford Honda Mazda Mercedes-Benz RAM Toyota Volkswagen Peugeot Truck Coupe Crossover SUV Concept Cars Electric Luxury Off-Road Vehicles Performance Sedan Afeela

Gordon Murray, F1-driven production and .. the Pontiac Fiero

Gordon Murray's design and engineering chops are unquestionable. But does his carmaking approach owe something to the short-lived Pontiac Fiero, a scrappy little car program that emerged from GM against serious resistance? Murray had a Formula One career that ran from 1969 to 1991, with stints at Brabham ('69 to '86) and McLaren ('87-'91), that resulted in several shelves' worth of trophies for the cars he was instrumental in designing. He moved on to McLaren Cars, the consumer side of things, where, during his tenure from 1991 to 2004, he helped design the McLaren F1 and the Mercedes-Benz SLR McLaren, two cars that took learnings from his two decades in Formula One. What do all of these cars have in common? Three things: They are light. They were built in limited numbers. And they were (and are) exceedingly expensive—when the McLaren F1 debuted in 1994, it stickered at $815,000. Murray went on to establish Gordon Murray Design in 2007. GMD has created some interesting concept vehicles, such as the diminutive T.25 city car (94.5 inches long, 51.1 inches wide and 55.1 inches high), and the OX, a lightweight truck for the developing world that packs like an IKEA shelf and is working toward realization through a worthy crowdfunding campaign established by the Global Vehicle Trust. Now he has created a vehicle manufacturing company, Gordon Murray Automotive, that will use manufacturing methods that he developed under the moniker "iStream." Unlike a unibody, there are the "iFrame," a cage-like construction made with metallic components, and the "iPanels," which are composite. The panels aren't simply a decorative skin; they actually provide structure to the vehicle. Presumably this has something of the F1 monocoque about it. Going back to the three elements, (1) this arrangement results in a vehicle that can be comparatively light; (2) Murray has indicated that his manufacturing company will be doing limited-run production; and (3) to launch Gordon Murray Automotive they are going to be building a flagship model, about which Murray said, "With our first new car, we will demonstrate a return to the design and engineering principles that have made the McLaren F1 such an icon." Which seems to imply that it will be on the pricey side. According to the company's verbiage, "iStream forges an entirely new production method that defies conventionality with its Formula One-derived construction and materials technologies." It also sounds a whole lot like ...