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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 918 Spyder with Weissach package does 0-62 mph in 2.6 seconds

Porsche marketers are having a field day with the 918 Spyder after some last-minute tuning improved the car's performance. They now say that it's so fast it's already beaten itself. Let us explain: Using a Weissach package-equipped 918 as an example (which reduces the plug-in hybrid supercar's weight through the deletion of some interior items, more generous use of carbon fiber and magnesium wheels), the car's previous official 0-62 miles-per-hour time of 2.8 seconds has been cut to 2.6. Additionally, 0-124 mph takes 7.2 seconds and 0-186 mph is dispatched in 19.9 seconds, times that were reduced by half a second and 2.1 seconds, respectively.
In all-electric mode, a non-Weissach pack 918 does 0-62 mph in 6.2 seconds (with the package, 6.1 seconds), down from 6.9 seconds. Efficiency is also improved thanks to the final tuning. The New European Driving Cycle (NEDC) rating of a Weissach pack-equipped car equates to 94 miles per gallon, up three mpg compared to before. That's pretty good for a car with 887 horsepower!
Check out the press release below for more details on how Porsche's final tuning measures improved its flagship supercar.

Autoblog Podcast #344

Doug DeMuro from Plays With Cars, Infiniti Q50, Subaru BRZ STI, Porsche Macan
Episode #344 of the Autoblog podcast is here, and this week, Dan Roth and Executive Editor Chris Paukert are joined by Doug DeMuro, author of Plays With Cars and prolific internet autowriting presence. Topics include the latest spy shots of the Porsche Macan, the 2014 Infiniti Q50, and the teaser images we've recently seen of a Subaru BRZ wearing STI badges. As always, we start with what's in the garage and finish up with some of your questions. For those of you who hung with us live on our UStream channel, thanks for taking the time. You can follow along after the jump with our Q&A. Thanks for listening!
Autoblog Podcast #344: