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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

VW, Fiat, Mercedes could be CNG winners in Europe

Fiat ads in the US try to play up the exotic, sexy side of Italian culture. On the home front in Italy, however, passenger-vehicle sales are marked by something less edgy and quite a bit more practical: the growth of compressed-natural-gas (CNG) powered car sales. In fact, Italy is leading a group of European countries where CNG sales are on the upswing and may be benefiting automakers like VW, Fiat and Mercedes-Benz, according to Automotive News. VW started sales of its Golf TGI natural-gas vehicle this year – the company's fourth in Europe – while Mercedes-Benz added a natural-gas B-class model. Fiat accounts for about 50 percent of CNG vehicles sold on the continent. In all, Europe's CNG sales through September totaled about 67,000, up seven percent from a year earlier, Automotive News Europe says, citing research firm JATO Dynamics. And the number of CNG vehicles on Europe's roads could jump tenfold within the next decade. The draw is a combination of lower refueling prices and a CNG drivetrain that typically emits less CO2 than diesel vehicles. As for Italy, about five percent of new-vehicle sales are CNG. To put that into perspective, hybrids, battery-electric vehicles, plug-in hybrids and diesels combined to account for about 4.2 percent of US vehicle sales last year. News Source: Automotive News - sub. req.Image Credit: Volkswagen Green Fiat Mercedes-Benz Volkswagen Natural Gas Vehicles CNG

2016 Mercedes-Maybach S600 First Drive

Imagine the audacity: during the salad days of the early 2000s, the company that invented the automobile – already synonymous with class-leading luxury – sought to further expand its portfolio by crashing the ultraluxury party. Going up against the likes of Rolls-Royce and Bentley, Mercedes-Benz traded its unmistakable Three-Pointed Star for a Mighty Mouse-like logo, exhuming a stately, long-dead German marque originally founded in 1909. The long-wheelbase Maybach 62 listed at an epic $360,000, while later spinoffs included curiosities like the nearly $700,000 Zeppelin, and a roofless, seven-figure limousine dubbed Laundaulet. By the time the financial bubble finally burst in 2008, the brand's fate was all but sealed, with US sales dropping into the double digits. It limped along another four years, but when the nameplate finally went kerplunk, it left behind it a trail of disappointed movers, shakers, moguls and rappers. The perfect postmodern metaphor for the brand's funeral pyre? Kanye West and Jay-Z's Otis music video, in which a perfectly fine Maybach is chopped and deconstructed, flames spewing out the tailpipes as it powerslides through an empty parking lot. Meet The (Sorta) New Boss Rising from the ashes of hubris is the 2016 Mercedes-Maybach S600, a recalibrated stab at high-end luxury with a startlingly similar, yet different, approach to its forbear. Like the last go, the new sled features a significantly longer wheelbase, which stretches 8.1 inches over the standard S600. Additional sound damping helps it claim the quietest rear cabin in all of production automobiledom, and posher trim bits include a rim of wood surrounding the reclining rear seats. Among the livery-focused special features is a rearview mirror-mounted microphone to amplify the driver's voice, an available rear fridge, and an executive seat package with folding tray tables. The super high-end hallmarks are there – a twin-turbo V12 dispatching sub-5 second 0 to 60 times, a stunning 24 speaker Burmester sound system, double-M branded silver plate champagne flutes, et al. – but the hyperinflated price tag is not. Starting at $189,350, roughly half the cost of the old flagship, the new Maybach isn't even the most expensive Mercedes-Benz you can buy. That distinction goes to the S65 AMG Coupe, which empties your coffers to the tune of $230,900.