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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 says turbo'd 911 engines will still be revvy

Porsche fans really, really don't like change. Remember when the 911 moved away from air-cooled engines? Now, as the company prepares to move the vast majority of the 911 line away from naturally aspirated powerplants, one of the brand's highest ranking officials is speaking out to prevent a similar outcry. Dr. Heinz-Jakob Neusser, the head of powertrain development for the Volkswagen Group and a board member of the VW brand, told Car that turbocharging won't take away from the rev-happy nature of Porsche's current engines. "Turbocharging is possible with higher revs – it's not true to say that turbocharged engines must stop at 6000rpm," Neusser told Car at the 2015 New York Auto Show. "That's not true... If you look at McLaren, they already have in production turbo engines with high revs." With turbocharged engines, Nuesser explains, there's no need to go for a super high redline, because engineers are trying to spread the torque over the entire rev range. "It makes no sense to go to 10,000 rpm with a turbocharged engine," Neusser told Car. The other big concern that comes with the switch to turbocharging focuses on the 911's iconic flat-six exhaust note. Maintaining the car's well-known acoustic character shouldn't be an issue, Neusser said. "Noise is not a problem," adding that the Volkswagen Group knows a thing or two about building sweet-sounding turbos. "Look at the 911 Turbo; it has an extremely expressive noise today – that is not a problem. At the other end of the scale, the Golf R has it too," Neusser told Car. "You won't miss character with turbos, I promise." According to Car, the new turbocharged engines will arrive later this year at the 2015 Frankfurt Motor Show, as part of the current 911's facelift. Featured Gallery Porsche 911 Coupe: Spy Shots View 9 Photos News Source: CarImage Credit: CarPix Frankfurt Motor Show Porsche Performance turbocharging volkswagen group

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.