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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.

2016 German Grand Prix race recap: so-so racing, great questions

We can summarize the 2016 German Grand Prix in one sentence: Mercedes-AMG Petronas driver Lewis Hamilton started second on the grid, passed pole-sitter and teammate Nico Rosberg before the first corner, and dominate to the finish. In fact, Hamilton turned his engine power output down on Lap 3 and still took the checkered flag seven seconds ahead of Red Bull driver Daniel Ricciardo. Ricciardo's teammate Max Verstappen crossed the line another six seconds back. Rosberg fell to fourth at the first corner and couldn't find the pace to reel in the Red Bulls. His questionable pass on Verstappen didn't help when the stewards penalized Rosberg five seconds; the overtake reminded us of Rosberg's move on teammate Hamilton in Austria. That penalty turned into eight seconds when the Mercedes-AMG Petronas stopwatch didn't work in the pits. Ferrari pilots Sebastian Vettel and Kimi Raikkonen finished fifth and sixth. Those six drivers all started in the top six, too. Behind them, on Lap 28 of the 67-lap race the next four drivers were Valtteri Bottas in the Williams, Nico Hulkenberg in the Force India, and Jenson Button and Fernando Alonso in McLarens. Low fuel and old tires put the kibosh on Alonso's pace just four laps from the finish, allowing Force India's Sergio Perez to pass, rounding out the top ten. The issues up for debate during the four-week break are far more interesting than the weekend's race. As bad as Ferrari's day might have been – and we'll get to that – Rosberg probably took the biggest hit, losing the race before the first corner for the second weekend in a row and falling 19 points behind Hamilton. Rosberg won the first four races of the season, then the teammates tripped over one another in Spain. Hamilton's won six of the seven races since Spain, Rosberg's best result in that time is a second-place in Hungary. Hamilton turned his engine down on Lap 3 (!) because he's used his entire season's allotment of five turbochargers and five MGU-Ks. Those early-season gremlins now have him on edge of grid penalties. Unless Hamilton's momentum cools off in August, however, that reliability danger might be the only dent in his armor. Rosberg, who once led the Championship by 43 points, will surely drown in his thoughts – and maybe schnapps – over the summer break. Whatever the Italian word for "meditation" is, there'll be a lot of it at Ferrari during the F1 summer break.

Genesis G70 vs sport sedan rivals: How it compares on paper

We got our first look at the Genesis G70 sport sedan today. We think it looks good, with enough ties to its fellow Genesises (Geneses?) to further establish the brand and just enough distinction to help it stand out from the crowd. But ah yes, the crowd. Although Genesis didn't release the G70's full spec sheet, it revealed just enough for us to start sizing it up to its future competition. There are certainly others with which to compare (Lexus IS, Cadillac ATS, Alfa Romeo Giulia, Jaguar XE just to name a few), but we decided to take a look at the best sellers and most competitive luxury sport sedans. (And hey, if you like this, we can always do a follow up) So, here we have the Genesis G70 vs BMW 3 Series vs Audi A4 / S4 vs Mercedes-Benz C-Class vs Infiniti Q50. Nothing like a good chart to dig your teeth into on a Friday. Note that we only compared those models that line up with the G70. So, we left out the BMW 320i and Audi A4 Ultra entry level models as well as the Q50 3.0t mid-grade model that's considerably cheaper than the German performance upgrade models we listed. All 0-60 figures are rough estimates based on several sources, models/drivetrains and OEM figures. Related Video: Featured Gallery Genesis G70 vs other sport sedans View 15 Photos Audi BMW Genesis Infiniti Mercedes-Benz Luxury Sedan consumer infiniti q50 audi s4 genesis g70 mercedes-benz c-class bmw 330i bmw 340i