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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.

Porsche prioritizes 200,000-unit sales target over exclusivity [w/poll]

Would a Porsche still be a Porsche if it weren't as exclusive? That's the question which industry pundits are asking - and customers may soon as well - as the German automaker emerges from the fringe in pursuit of larger volumes.
A dozen years ago Porsche was barely selling over 50,000 units per annum. In a sales surge that has gathered pace as fast as a 911 Turbo, however, it was already hovering around the 100,000-unit mark a few years later. Last year it sold over 160,000, and has targeted 200,000 units by 2018. But it may not even take that long.
Automotive News reports that Porsche has advanced its targets to reach for 200,000 units by the end of this year or the next. The bump in sales would be driven particularly by the introduction of the new Macan, of which it aims to sell 50,000 units annually, starting next year. The Cayenne currently stands far and away as its most successful model. The 911 and Panamera have swapped second place a few times over the past five years, followed by the Boxster and Cayman.

Porsche considering turbo for new GT3 RS [w/poll]

Some automakers make one hardcore version of a sports car and are done with it. Or at least they make one at a time. Think Ferrari 458 Speciale, Lamborghini Gallardo Superleggera (or Super Trofeo Stradale or Squadra Corse) or Maserati GranTurismo MC. But not Porsche. It transforms the 911 into the hard-core GT3, the even harder-core GT3 RS, the you've-got-to-be-psychotic GT2 and the do-you-have-a-death-wish GT2 RS. The RS models take things to a further extreme, but what separates GT3 from GT2 models has traditionally been the use of foced induction: GT3s are naturally aspirated, while GT2s go turbo. But that could all be about to change.
According to the rumors making their round of the webosphere, Porsche is considering using a turbocharged engine for the next GT3 RS. The reason is that, as we all know, Porsche has already pushed the 3.8-liter flat-six in the existing GT3 about as far as it can go, and then some. And buyers expect not only a more bare-bones package with the GT3 RS, but also a bit of extra power.
Given that everything seems to be going turbo these days, the move might make some measure of sense, especially if Porsche wants to avoid with the GT3 RS the spontaneous combustion issues it faced with the GT3. But we can't help but wonder why, at that point, it wouldn't just skip the GT3 RS and go straight for the GT2.