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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 S-Class Magic Body Control ad is clucking awesome

This is a new ad from Mercedes-Benz. At no point does it show an automobile. Instead, it stars animals, but not the sort you might normally see in car commercial. This ad is all about chickens. It is bizarre, to say the least, with Diana Ross and the Supremes belting it out in the background, but it all kind of comes together when you realize just what Mercedes is hawking (yeah, pun intended).
It's for the manufacturer's Magic Body Control, found on the new S-Class. The system basically analyzes the road and prepares the suspension accordingly, leading to a ride that is, in the words of our own Chris Paukert "nothing short of spooky." You can read about it in our full review of the 2014 S550. Take a look below for the 53-second spot.

Ferrari, Mercedes selling cars with faulty Takata airbags

According to the US Senate, a small group of automakers are still selling new cars with faulty Takata airbags. Automotive News reports that Ferrari's entire lineup and various Mercedes-Benz vehicles come with faulty airbags and are subject to being recalled by the end of 2018. US Senator Bill Nelson, (D-FL), claims the affected Ferrari models include: the 2016 to 2017 FF, California T, F12 Berlinetta, F12 TdF, 488 GTB, 488 Spider, and GTC4 Lusso. Mercedes-Benz is also in the mix with the 2016 Sprinter and 2016 to 2017 E-Class Coupe and Convertible. Automotive News reports that both Ferrari and Mercedes-Benz will require its dealers to notify buyers of a recall in the vehicles' future. The National Highway traffic Safety Administration claims the vehicles are legal to be sold, as the airbags are safe until exposed to high humidity for a significant period of time. With the majority of Ferrari drivers storing their vehicles in temperature-controlled garages, this shouldn't be troubling news. What is troubling, however, is that seven out of 17 automakers that Senator Nelson contacted admitted to putting defective Takata airbags into its new cars. Volkswagen, Fiat Chrysler Automobiles, and Toyota are a few automakers that still use Takata's faulty airbags. All have agreed to notify buyers of future recalls. Related Video: News Source: Automotive News-sub.req.Image Credit: Copyright 2015 Lorenzo Marcinno / AOL Government/Legal Recalls Ferrari Mercedes-Benz ferrari ff ferrari f12 berlinetta ferrari 488 gtb ferrari california t ferrari f12 tdf ferrari 488 spider ferrari gtc4 lusso