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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.

Mercedes to market Tesla-powered 2014 B-Class EV in U.S.

Looks like another Tesla Motors investor will be looking to cash in on their connection. Autoweek reports Mercedes-Benz will offer their B-Class in the U.S. with Tesla propulsion.
The magazine says their source at the German automaker confirms plans for a B-Class electric-only vehicle. While Tesla already provides battery packs for the battery-powered Smart ForTwo, the B-Class EV will reportedly have Tesla batteries, motor and other components. U.S. residents should be able to procure one sometime in 2014.
The same Mercedes source says plans for a hybrid B-Class have been postponed for now. Adding a range-extending, gasoline-powered engine to an electric vehicle would put the car into a different class for which rebates and incentives aren't as favorable in the States.

Mercedes caught testing stretched E-Class Maybach

The Mercedes-Maybach S600 won't be the only vehicle to wear the hyphenated name of two of the world's automotive luxury greats. That hulking S-Class will soon be joined by an E-Class variant, which should offer the same touch of subtle luxury as its big brother. At least, that's what we're guessing based on the latest round of spy photos, showing a stretched E-Class with some very telling camouflage. Pay attention, as our spies did, to the rear doors and C-pillar. Like the Maybach S600, the E-Class model features a larger quarter window, although unlike the S, the doors here look to be a bit larger than your usual E550 or E250. Also take note of the heavy tint on those rear windows. It's likely there to obscure whatever sumptuous hides and warm woods Maybach has fitted to the typically business-class interior. While the interior materials are likely to see sweeping changes, expect Mercedes to treat the exterior with a much gentler touch. There'll probably be some unique wheels and C-pillar-mounted Maybach badges, like what we've already seen on the S600. Check out the full round of spy photos up top, and stay tuned for more on the latest Mercedes-Maybach. Related Video: