1965 Porsche 356 C on 2040-cars

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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.

Volkswagen Group previews its wares on eve of Geneva show

The Volkswagen Group is comprised of 11 brands producing 240 vehicles across 49 factories throughout the world. So the best way to show off the range of the VW family is to cram a few thousand journalists and VIPs into a massive makeshift stand to outline the Group's goals, what's in the pipeline and what you'll be able to buy later this year.
To that end, VW pulled out all the stops on the eve of the 2012 Geneva Motor Show, bringing along 10 vehicles from across the range. We'll be delving into the details of each over the next two days of show coverage, but before that happens, you can read all about what we saw tonight from the cheap seats after the break.

Porsche rolls out new 919 Hybrid at racing gala

That Porsche is returning to Le Mans next year with a top-tier LMP1 entry is no news - we've known that for some time. We've even seen pictures of the car in question undergoing testing at various racetracks across Europe, been told who'll be driving it and given some basic parameters of what will make it go. We just haven't known what to call it, but now we do.
In detailing its full endurance racing program for next year at its Night of Champions in Weissach, Porsche has revealed that its new LMP1 racecar will be called the 919 Hybrid. So, something like the 918 Spyder, only one faster. With a four-cylinder engine and a pair of electric motors, the 919 Hybrid will be taking on the top class at Le Mans next year, with a compelling roster of drivers on the docket: along with Mark Webber, Timo Bernhard, Romain Dumas and Neel Jani, Porsche has assigned its works driver Marc Lieb and F1 test driver Brendon Hartley to the effort. But that's not all Porsche has in store.
The factory is also supporting teams that will campaign the 911 RSR in the FIA World Endurance Championship as well as the United SportsCar Championship here in the US, taking Porsche off the pit wall and right in the race seat for next year as part of a comprehensive new racing program, details of which you can read in the press release below.