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Dealers mobilize to protect their margins from automaker subscription services
Fri, Aug 24 2018Six 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.
Vision Mercedes-Maybach 6 teases gullwing doors in video
Tue, Aug 16 2016Because these are the times we live in, automakers tease their biggest and best debuts mercilessly before finally dropping the curtain. That's why we're writing about the Vision Mercedes-Maybach 6 Concept again. Here's a new video, posted on Mercedes' Instagram page, showing even more of the hulking two-door coupe. For one, it looks like Mercedes is revisiting gullwing doors. There's a brief snippet of the doors in the open position with a red light – possibly a brake light – bisecting the roof. The video also gives us a couple of good looks at the taillights, which are super-model skinny, just like the lamps up front. Look close at the rear three-quarter cut, and you'll spot a strong chrome strip that accentuates and breaks up those beefy rear haunches. It's hard to tell where they fit in with the chrome strips on the front fenders and hood, so we'll probably need to wait until the big debut to see how it all works out. As we've said twice already, the Vision Mercedes-Maybach 6 debuts on August 18. Stay tuned. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.
Mercedes-Benz C-Class 'bleeding seat' problem resurfaces [UPDATE]
Wed, Feb 11 2015UPDATE: We received the following statement from Mercedes-Benz: "In rare instances, we incorrectly ordered some of the replacement parts for the seating surfaces. The approved replacement parts will not demonstrate the previous symptoms." It appears Mercedes-Benz has another problem with "bleeding seats" in 2015 C-Class sedans. As we reported in January, an oily residue has been appearing on some versions of the C-Class with man-made MB Tex upholstery, making it look as though the seats were grimy or "bleeding." Mercedes issued a technical service bulletin to its dealers to remedy the problem, but now we're hearing the fix isn't complete. Small parts of the seats – the rear bolsters and a piece below the center armrest – weren't replaced during service and then developed the oily reside again, a source tells us. This occurred within a few days of their service appointment. The dealer followed Mercedes' instructions, our source said, and their C-Class appears to have been one of the first cars fixed. "I'm absolutely flabbergasted at this point ... The new C-Class is such a good car. This is just a shame," they told Autoblog. The bleeding seat issue appears to affect US-built C-Class models with the MB Tex vinyl and possibly other interiors. The bleeding often occurs when a car has been sitting in the cold and then heats up quickly. The number of cars affected is unclear, though the C-Class owners have been vocal in the MBWorld.org forum. At the time of our original report, Daimler AG, parent of Mercedes-Benz USA, said it was aware of the issue and that no injuries had been reported. The residue usually washes off with soap and water. The National Highway Traffic Safety Administration had no recalls, complaints or investigations recorded about the issue as of Wednesday. The fix at the dealer involves changing out the headrest and seat covers, except for a part of the passenger seat that needs to be calibrated by the factory, according to the bulletin. The C-Class is a critical car for Mercedes as it battles BMW, Lexus and others for supremacy in the ultra-competitive luxury segment. The C-Class, which launched last fall, is moving upmarket as Mercedes reshuffles its lineup with the addition of the CLA sedan. The C-Class was the company's best-selling model in January with volume of 6,236 units.