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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.

Geely plans to launch hundreds of satellites to guide autonomous cars

BEIJING — China's Zhejiang Geely Holding Group said on Tuesday it was investing 2.27 billion yuan ($326 million) in a new satellite manufacturing plant, where it plans to build low-orbit satellites to provide more accurate data for self-driving cars. Geely, one of China's most internationally-known companies due to its investments in Daimler, Volvo and Proton, is building the facilities in Taizhou, where it has car plants. It aims to produce 500 satellites a year by around 2025, with around 300 highly-skilled staff, it said in a statement. Geely's technology development arm, Geely Technology Group, launched Geespace to research, launch, and operate low-orbit satellites in 2018. Geespace will begin the launch of its commercial low-orbit satellite network by the end of this year, Geely said. Geely said low-orbit satellites would offer high speed internet connectivity, precise navigation, and cloud computing capabilities to cars with autonomous driving technology. Geely, which sold 2.18 million cars last year, is among global automakers from Tesla to Toyota to pursue autonomous driving technologies. It is building low-orbit satellites to meet demand for high-speed connectivity capabilities that can deliver fast software updates. From around 2025, Geely's cars will have more functions to connect to the satellites. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.     Green Plants/Manufacturing Mercedes-Benz Volvo Emerging Technologies Autonomous Vehicles

Daimler chairman agrees with German Greens on reducing emissions

Daimler Chairman Dieter Zetsche spoke at a Green Party congress in Germany earlier this week and said he agreed with the party's urge to dramatically cut transportation-based greenhouse-gas emissions by expanding plug-in vehicle sales, Reuters says. Zetsche stopped short of backing the Greens' suggestion to ban gas- and diesel-powered vehicles by 2030, though. The man must keep his job, after all. Zetsche did say that reducing greenhouse-gas emissions from the transportation sector was "necessary," and his company has made plans to do just that. Daimler representatives said at the Paris Motor Show earlier this year that Smart and Mercedes-Benz both planned to debut more than 10 electric vehicles within the next decade, and that plug-ins may account for as much as 25 percent of Mercedes-Benz's sales by then. Moreover, Dr. Thomas Weber, Head of Group Research and Mercedes-Benz Cars Development, said in June that Mercedes could be selling as many as 100,000 EVs a year by the end of the decade. Last month, Mercedes-Benz announced that its EQ electric-SUV concept would go on sale by 2020, and that the Bremen factory that's producing the model will broaden its plug-in vehicle production further. Zetsche's cautious support notwithstanding, the German government appears to be doing its own part to reduce emissions from the country's light-duty vehicles. Earlier this year, Germany enacted a plan that provides as much as 4,000 euros ($4,270) in perks for people who buy new electric vehicles, with German automakers agreeing to foot about half of the estimated $1.4 billion bill. German lawmakers had also floated the idea of a 10-year moratorium on electric-vehicle taxes for cars purchased before 2020. Related Video: News Source: Reuters via Automotive News Europe-sub.req.Image Credit: Ralph Orlowski / Reuters Government/Legal Green Mercedes-Benz smart Electric