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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.

Brabus to storm Geneva with 800-hp version of Mercedes SL65 AMG

At no point during our recent drive of the 2013 Mercedes-Benz SL65 AMG did we ever think, "You know, this thing sure is slow." After all, Merc's range-topping SL comes fitted with a twin-turbocharged 6.0-liter V12 capable of sending 621 horsepower and 738 pound-feet of torque to the rear wheels. But just in case you're still all "meh" about what the SL65 throws down, Brabus will gladly come to your rescue with this, the 800 Roadster.
As its name suggests, the 800 Roadster ups the V12's power figures to 800 horsepower and - wait for it - 1,047 pound-feet of torque. Don't get too excited, though - that torque number has been electronically limited to a measly 811 lb-ft since, you know, the transmission would probably explode if you tried to put the full force through it. Nevertheless, these represent increases of 79 hp and 73 lb-ft over the standard SL65, and that means the 800 Roadster can shoot to 62 miles per hour in just 3.7 seconds - two-tenths of a second quicker than the Merc its based on. More impressively, hitting 124 mph takes just under 10 seconds, and the droptop will finally top out at an electronically limited - limited! - 217 mph. Holy smokes.
To manage all of that speed, Brabus has engineered a special carbon fiber aero kit that reduces lift, and a unique control module for the SL65's active body control suspension lowers the ride height by one full inch. The 800 Roadster rides on new 20-inch wheels, and a unique limited-slip rear differential was added, featuring a 40 percent locking rate that further enhances performance when you're attempting to control the beast at its limits. Interior upgrades include new leather and alcantara surfaces throughout the cabin, including a leather-clad trunk.