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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.

Recharge Wrap-up: Mercedes B-Class Electric Drive is a rock star, FedEx tests electric trucks

The Mercedes-Benz B-Class Electric Drive is in a new music video for I Lived by OneRepublic. The band's singer, Ryan Tedder, has also been brought on as a brand ambassador for the German automaker. OneRepublic will also be performing the song at the Mercedes-Benz Media Night on the eve of the Paris Motor Show. No word if Mercedes plans to offer hordes of screaming teenage fans as an option package with the B-Class Electric Drive. See the video (the car shows up around the four-minute mark) or read more in the press release below. FedEx is testing converted electric delivery trucks with diesel range extenders. Looking to shrink its carbon footprint, the company has converted a handful of trucks as part of a pilot program. In addition to battery packs, each truck is equipped with diesel turbine generators (supplied by Ian Wright's company, Wrightspeed) to provide electricity when the battery is depleted. Because the diesel motors aren't powering the vehicle directly, they can continuously run at their most efficient speed, making the trucks about twice as efficient as those powered by traditional means. Read more at Wired. Ford's new aluminum-bodied F-150 will be 5 to 20 percent more efficient, the company says. The fuel economy gains depend on the particular version of the truck, but the biggest improvement will likely come from the 3.5-liter V6 and the 2.7-liter EcoBoost V-6. Automotive News predicts the F-150 SFE to be rated at 21 mpg city/28 highway/23 combined, which are identical figures to the Ram 1500 EcoDiesel. The result could be a noteworthy fuel economy battle between Ford and Ram trucks. Learn more at Automotive News. The US Department of Energy is providing $25 million in funding toward reducing the price of algal biofuels. The goal is to get the price of these renewable fuels below $5 per gasoline gallon equivalent (gge) by 2019, and less than $3 per gge by 2030. The money will fund projects to develop better algal cultures that produce biofuel and other useful bioproducts, and projects to boost biomass productivity. The DOE says it wants to help develop a "bioeconomy" that provides jobs, helps the environment and ensures energy security. Read more at Energy.gov. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Mercedes-Maybach Pullman is the luxury car for the discerning dictator

For decades, Mercedes-Benz and Mercedes-Maybach cars have been the ride of choice for leaders across the globe, presidents, ambassadors, dictators and despots alike. The Pullman model — a long-wheelbase six-seat variant — has been particularly popular with this select clientele. This week, the German automaker announced the latest version of the car, the Mercedes-Maybach Pullman S650. Essentially, this is a stretched version of the V12-powered Maybach with two rear-facing seats just behind the front row. Mercedes is calling this vis-a-vis seating. There's also a partitioning glass between the front seats and the rear cabin. This is of course to help prevent the chauffeur from learning and spilling any state secrets or plans for plans for secret moon bases. New for this model is a front-facing camera for rear-seat passengers. This allows occupants to watch for any oncoming obstacles, barricades or road blocks. Visually, there's no mistaking the Pullman for another Maybach or really anything else on the road. The car is 21.3-feet long, 4.5-feet longer than the standard Maybach or roughly the size of two and a half Smart Fortwo placed bumper-to-bumper. The requisite 20-inch 10-hole wheels are present and the standard pinstripe Maybach grille has been updated with a slightly new design. The car only comes in S650 trim, meaning it's powered by a 630 horsepower 6.0-liter twin-turbo V12. As expected, the Mercedes-Maybach Pullman isn't cheap. Orders have started, but be prepared to shell out at least $615,000 before adding any custom touches. Related Video: Featured Gallery 2019 Mercedes-Maybach Pullman View 10 Photos Image Credit: Daimler Design/Style Maybach Mercedes-Benz Luxury Special and Limited Editions Sedan mercedes-maybach mercedes-maybach pullman