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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.

Mercedes-Maybach previews longer, more lavish S-Class ahead of debut

In some international markets, Mercedes-Benz's new 2021 S-Class will get Level 3 semi-autonomous technology, but chauffeur-driven buyers already enjoy full autonomy. It's for these individuals that Mercedes-Maybach, the firm's extra-luxury division, stretched the sedan's wheelbase and gave it an interior worthy of a private jet. Maybach said it developed its variant of the 2021 S-Class specifically for buyers with a chauffeur. It added seven inches to the sedan's wheelbase, and the additional sheet metal benefits those riding in the back. Standard executive rear seats give passengers a comfortable place to work or rest while they're being driven, and the list of new features added to the sedan include massaging calf rests as well as heating for the neck and shoulders. Although we haven't seen Maybach's S-Class yet, a preview image shows the optional two-tone paint — one of the company's hallmarks — and a chromed Maybach emblem. Up front, it will receive a specific grille with vertical slats instead of the horizontal ones worn by the standard S-Class. An additional serving of chrome-look trim will almost certainly further set the Maybach apart, but it will retain its predecessor's relatively subtle design. Specifications won't be announced until the model's unveiling. Mercedes-Benz confirmed it's phasing out V12s, though the big engine could return for one final round under the hood of the S-Class. Alternatively, Maybach may have chosen to surf the downsizing wave still sweeping across the industry by selecting a 4.0-liter V8. Mercedes-Maybach will introduce the 2021 S-Class online on November 19 at 2 p.m. Stuttgart time, which is 8 a.m. in New York City and 5 a.m. in Los Angeles. Deliveries are scheduled to start during the first half of 2021. When it lands, the sedan will join Maybach's variant of the GLS in showrooms across the United States. Related Video:

Weekly Recap: Ferrari looks to reclaim old success with new manager

Clearly, Ferrari doesn't race for fourth place, and this week, major changes continued at the Scuderia. It was a rough year for Ferrari, and the Scuderia conducted its season-ending tests in Abu Dhabi this week with a view toward a fresh start in 2015 with new leaders and a new ace driver. Though plenty of other Formula One teams were disappointed with their finishes in 2014, Ferrari was perhaps the most eager to put this season in its rear-view mirror. The Scuderia finished a distant fourth in the Constructors standings with 216 points, well behind No. 1 Mercedes (701 points), and Ferrari failed to win a single race as the Silver Arrows dominated the grid. It was an especially bitter pill for a team that claims 16 Constructors championships and 15 Drivers titles – the most in history – and is the only surviving team from F1's first season, 1950. Clearly, Ferrari doesn't race for fourth place, and this week, major changes continued at the Scuderia. Ferrari named Philip Morris executive Maurizio Arrivabene as team principal. He replaced Marco Mattiacci, who held the job for only seven months after taking over for Stefano Domenicali, who resigned in April amid the Scuderia's early-season struggles. Phillip Morris (through its Marlboro brand) is a key Ferrari sponsor, and that played a role in Arrivabene's ascension. Still, he's no stranger to F1, and has been intimately involved in the Ferrari-Marlboro partnership. He also has served as the sponsors' representative on the FIA's F1 Commission since 2010. In a statement, new Ferrari chairman Sergio Marchionne said: "We decided to appoint Maurizio Arrivabene because, at this historic moment in time for the Scuderia and for Formula One, we need a person with a thorough understanding not just of Ferrari, but also of the governance mechanisms and requirements of the sport." Arrivabene's background is primarily in marketing and communication, and most recently he held the title of vice president of consumer channel strategy and event marketing for Philip Morris. He has been with the company since 1997. Arrivabene now leads a team that's rife with change. Marchionne took over in October when longtime boss Luca di Montezemolo quit in a disagreement about Ferrari's future, and the company itself will be spun off from parent Fiat Chrysler Automobiles in 2015.