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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.

Infiniti cribs new US boss from Porsche

Just weeks before he was supposed to become CEO of Porsche Cars Australia, Infiniti has apparently offered Porsche COO and Executive Vice President Michael Bartsch a deal he couldn't refuse. Thus, Bartsch has join the company as Vice President of Infiniti Americas, the luxury marque's top North American post. Bartsch replaces Ben Poore, who has been with the automaker since 2008, having led both a 22-percent sales surge in 2012 and the brand's current sales slough, Automotive News reports.
Bartsch, Porsche's No. 2 US executive, has held the COO and Executive Vice President positions at Porsche since 2005 and was scheduled to become CEO of Porsche's Oz division on September 1. Infiniti has experienced a number of recent personnel changes in the past week: it named Vincent Gillet, formerly an executive for Starwood Hotels & Resorts, to lead its marketing efforts worldwide and Simon Cox, a former designer for automakers including Ford and Peugeot, to head a new design studio in London.
Poore reportedly will pursue other interests outside of the auto industry. Read more about the personnel change in the press release below.

Top Gear brings together LaFerrari, McLaren P1 and Porsche 918

Earlier this month, Top Gear released a brief video of the comparison test between three hybrid hypercars we'd all been waiting for: the Ferrari LaFerrari, McLaren P1 and Porsche 918 Spyder. The story was done by the print magazine and not by the television show, and the video they released was barely over half a minute long, reserving the full version for subscribers of the iPad edition. Now the British mag has put the full video on YouTube, and while it's still only a minute and a half long – three times the length of the previous teaser – it's packed with electrified exotic goodness. The test surely took some serious wrangling to put together, and though the metal (or carbon fiber, as the case may be) was apparently furnished mostly by private owners, to hear Top Gear tell it, the manufacturers – Ferrari, McLaren and Porsche – were eager and helpful in putting the showdown together. For the final conclusions, we're afraid you'll still have to buy the magazine, but for a rare chance to watch all these three world-beaters on the same road at the same time, you'll want to scope out this latest video clip. Related Video: News Source: Top Gear via YouTube Ferrari McLaren Porsche Hybrid Supercars Videos porsche 918 spyder mclaren p1 ferrari laferrari