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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.

Daimler employees can set email to auto-delete during vacation

The Internet has shrunk the world in terms of the way people communicate by making it possible to send an email from Oslo and have it show up in Cleveland almost immediately. But that instant contact has wrecked the work/life balance for many. They get home from a long day at the office, yet they can never fully put their feet up and relax because another hour or more of checking and replying to emails awaits. However, German automotive giant Daimler is putting an end to that churn, at least while its employees are on vacation.
About 100,000 Daimler employees in Germany are eligible to opt-in to a new program called Mail on Holiday, according to The Atlantic. When the workers go on vacation, they can switch it on, and the service auto-deletes all of their incoming email. "Our employees should relax on holiday and not read work-related emails," said Wilfried Porth, board member for human resources, to The Financial Times as cited by The Atlantic.
Mail on Holiday puts a thumb on the scale of work/life balance in favor of a little more free time. The system means that Daimler employees shouldn't even be tempted to check their email on vacation because there's nothing there - and it also avoids them coming back from a relaxing holiday only to find a mailbox packed full of hundreds of unread messages. These days, people are absolutely obsessed with their work, often to the detriment of their health, not to mention spending time with their families and friends. On one hand, Mail on Holiday sounds like the sort of vacation breakthrough we'd need to truly unplug and unwind, but on the other hand, it makes our skin crawl just thinking about the lack of communication. What's your perspective? Have your say in Comments.

German carmakers recall 630,000 diesel vehicles in Europe

Mercedes, Opel, Porsche, and Volkswagen will recall over 630,000 cars in Europe, according to reports Friday. No diesel car has been able to get under the legal emissions limit in real-world driving, according to a German government investigation. While only Volkswagen Group has been using a specific "defeat device", other carmakers have been playing with their exhaust gas recirculation (EGR) systems. Depending of the manufacturer, the systems have been cut off at a certain temperature. In a specific test cycle the systems operate to fulfill the legal requirements, but in everyday use the limits are exceeded. According to the magazine Der Spiegel, the supplier Bosch is behind this programming and has provided it to all German automakers. The mentioned carmakers have announced recalls, but many other manufacturers are also mentioned by name in the report, including Alfa Romeo, Chevrolet, Dacia, Fiat, Ford, Hyundai, Jaguar, Jeep, Land Rover, Nissan, Renault, and Suzuki. PSA Group, which produces Peugeot, Citroen, and DS cars, declared yesterday that its offices were raided following an emissions investigation. Related Video: News Source: AutocarImage Credit: Getty Images Government/Legal Green Recalls Mercedes-Benz Porsche Volkswagen Opel Emissions Diesel Vehicles diesel emissions investigation