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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.

$76,400 Porsche S E-Hybrid will debut in Paris

The 2015 Porsche Cayenne S E Hybrid will be an all-new model, one that adds a plug – and the required associated technological bits – to the currently available Cayenne S Hybrid. The most important of those bits is a 10.8-kWh lithium-ion battery, but Porsche's Calvin Kim told AutoblogGreen that the SUV's electric-only range is still pending certification, but Hybrid Cars says that Porsche is estimating it'll be somewhere between 11 and 22 miles, "depending on the style of driving and route topography." Other than the new battery, the electric motor has been upgraded to a 95 horsepower/70 kW unit (up from the 47-hp/34 kW motor in the Cayenne hybrid without a plug). The overall powertrain now puts out a total of 416 hp and can go from 0 to 60 miles per hour in 5.4 seconds. Alongside the electric parts, there's a 3.0-liter supercharged V6 engine and an 8-speed automatic transmission. You can find all of the E-Hybrid's available specs here and stay tuned for more information on the new plug-in SUV when it makes its debut at the Paris Motor Show in early October. The SUV will go on sale in the US on November 1, 2014 with a starting MSRP of $76,400, plus a destination charge of $995. In a new press release (available below), Porsche is also proudly saying, once again, that it will be the world's only automaker offering three plug-in hybrid models, once the Cayenne S E-Hybrid hits the market. The others are the Panamera S E-Hybrid and the 918 Spyder. How long will this reign at the top last? World premiere of the Porsche Cayenne S E-Hybrid in Paris Leading the industry: Porsche offers three plug-in hybrid models Stuttgart/Atlanta. The new Porsche Cayenne S E-Hybrid celebrates its world premiere at the Paris Motor Show. It is the world's first luxury SUV to offer a plug-in hybrid drive, setting new standards in its segment. The Cayenne S E-Hybrid also makes Porsche the leading manufacturer of plug-in hybrid vehicles: Complementing the Panamera S E-Hybrid and the 918 Spyder, Porsche is the only manufacturer worldwide to offer three plug-in hybrids. In addition to the Cayenne S E-Hybrid, Porsche is presenting the other models that comprise the new generation of Cayenne including the Cayenne S, Cayenne Turbo, and Cayenne Diesel. Increased efficiency and performance, even more precise handling, a sharper design and a broadened array of standard equipment are its defining features.

Audi and Porsche squabble over future product platforms

In the buildup to the 2014 24 Hours of Le Mans, Audi delivered an amusing video that worked on the playful rivalry between the German brand and its favorite frenemy, Porsche. We called it sibling rivalry, and at the time, it may have been just that. But just like sibling rivalries, it's all fun and games until someone gets hurt, and that's just what seems to be about to happen in the formerly peaceful Volkswagen Group family.
A new report from Automobile calls out the growing animosity between Porsche, who is backed up by Bentley, and Audi, whose primary ally is Lamborghini. No blows have actually been thrown, although there is a fair amount of "he said, she said" going on.
As Porsche tells it, for example, the new global fullsize SUV architecture being developed by Audi isn't up to snuff, citing size and structure issues, as well as an inability to accommodate a wide variety of engines.