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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.

Autoblog Podcast #410

Episode #410 of the Autoblog Podcast is here, and this week, Dan Roth, Chris Paukert, and Greg Migliore talk about the Mercedes-Benz GLE, the next generation Audi Q7, and Ford's promise of 12 new performance models by 2020. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the rundown with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #410: The video meant to be presented here is no longer available. Sorry for the inconvenience. Topics: Mercedes-Benz GLE 2016 Audi Q7 New Performance Ford/End of MyFordTouch In The Autoblog Garage: 2015 Toyota Camry XLS 2015 Ford F-150 2015 Volkswagen GTI Hosts: Dan Roth, Chris Paukert, Greg Migliore Runtime: 01:28:00 Rundown: Intro and Garage - 00:00 Tacoma - 24:17 Barn Find - 38:27 DB10 - 49:23 Q&A - 01:00:00 Get the podcast: [UStream] Listen live on Mondays at 10 PM Eastern at UStream [iTunes] Subscribe to the Autoblog Podcast in iTunes [RSS] Add the Autoblog Podcast feed to your RSS aggregator [MP3] Download the MP3 directly Feedback: Email: Podcast at Autoblog dot com Review the show in iTunes Podcasts Detroit Auto Show Audi Ford Mercedes-Benz ford performance

The Mercedes G-Class gets the full Maybach treatment before the curtain finally closes

Like the hotdog and soda combo at Costco or the official website for the 1996 movie Space Jam, the Mercedes-Benz G-Class has soldiered on nearly unaltered since its birth. Sure, there have been variants like the wonderfully over-the-top G63 6x6, but the G-Wagen is essentially the same squared-off SUV with rifle-bolt locks and doors with enough mass to support a minor gravity field. Spy shots show a replacement is finally on the horizon, but based on the leaked YouTube video above and Instagram post below, it looks like the current model is going to get the full Mercedes-Maybach Landaulet treatment before the curtain finally closes. While there has been no official word from the automaker, all signs point to a genuine Mercedes-Maybach product. The vehicle is badged as a G650, which falls in line with other current V12-powered Mercedes-Maybach products. The Maybach name and badge are found in all the expected places. The license closely matches other Mercedes German-manufacturer plates. The carbon fiber fender flares and portal axles look like they were taken from the G550 4x42. The latter means, despite the increased wheelbase, this new model should still be a formidable off-road machine. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. While we can't see the interior, look for the typical Maybach treatment. That means high-quality leather surfaces throughout and an increased focus on rear seat comfort and convenience. If this is indeed a G650, it's packing a 6.0-liter twin-turbocharged V12 under the hood that churns out 630 horsepower and 737 pound-feet of torque. The partial convertible top is what gives this the Landaulet moniker. According to the text on this Instagram post, there will only be 99 examples produced. Look for a full reveal in the next few months. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.