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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.

Mercedes G 500 4x4 is mighty mean and bright lime green

The Mercedes-Benz G500 4x42, finally ready to meet the crowds at the Geneva Motor Show, might just be the best factory-prepped expedition off-roader on the market, should Mercedes choose to build it. The short story is that some well-heeled admirers of the G63 AMG 6x6 said, "It's nice, but can you take it down a notch?" And by "notch" they meant "an axle." So the G500 4x42 gets just two portal axles instead of three, and a slew of other features. The 4x4 squared offers up a standard G-wagen body, but instead of the 5.5-liter twin-turbo V8 from the G63, there's a new 4.0-liter twin-turbo V8 with 422 horsepower and 450 pound-feet of torque. Compared to the standard G500, the track is 11.8 inches wider, the street-cred rims being 22-inchers on 325/55 R-series tires. When it's time to get dirty, they can be swapped for an optional set of 18-inch wheels with 37-inch beadlock tires. With that setup and the same wheelbase as the G500 LWB, ground clearance and fording depth are more than doubled to 17.7 inches and 39 inches respectively, the angle of approach goes from 36 degrees to 52 degrees and the angle of departure leaps from 27 degrees to 54 degrees. Breakover angle is bumped from 21 degrees to 47 degrees, a two-piece stainless steel undertray protecting the sensitive bits when you push it. The only parts that get a raised eyebrow are the carbon fiber wheel arches and bumpers, which might behave badly when they meet an immovable granite object. To escape the sensation of driving the Taj Mahal in urban environments, there's a twin spring-and-damper setup at each wheel. One of the spring-damper combos is electronically controlled and adjustable, and when called into action via the Comfort or Sport mode, takes control of wheel action; even when passive, it will kick in to automatically to stiffen the body if it detects evasive maneuvers. On top of all that, to remind you that you're in a Mercedes the interior is fitted out with Designo leather trim and diamond-quilted microfiber. Mercedes is going to gauge its Geneva reception before deciding to build it, a hurdle we're sure will be overcome. Car and Driver drove it and verified it's the real deal, with pricing - if it's built - speculated to land between the G63 AMG and G65 AMG. The press release below has all the details. Related Video: Near-series show car G 500 4x42: The G-Class Squared Stuttgart, Feb 21, 2015 -- Only a G-Class can be better than a G-Class.

Germany says nein to EU ban on new fossil-fuel cars from 2035

BERLIN (Reuters) - Germany's government will not agree to European Union plans to effectively ban the sale of new cars with combustion engines from 2035, Finance Minister Christian Lindner said on Tuesday. In its bid to cut planet-warming emissions by 55% by 2030 from 1990 levels, the European Commission has proposed a 100% reduction in CO2 emissions from new cars by 2035. That means it would be impossible to sell combustion engine cars from then. European Parliament lawmakers backed the proposals this month, before negotiations with EU countries on the final law take place. Speaking at an event hosted by Germany's BDI industry association, Lindner said there would continue to be niches for combustion engines so a ban was wrong and said the government would not agree to this European legislation. Lindner, a member of the pro-business Free Democrats, which shares power with the Social Democrats and Greens, said Germany would still be a leading market for electric vehicles. (Reporting by Christian Kraemer; Writing by Madeline Chambers; Editing by Miranda Murray and Edmund Blair) Green Government/Legal Green Audi BMW Mercedes-Benz Volkswagen Opel SEAT Skoda