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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.

Volvo confirms unnamed US model reveal for NY show

Tucked into the press release for the "display debut" of the Volvo V60 Plug-In Hybrid at the New York Auto Show, Volvo snuck in a single line announcing that it will also be introducing a new model for the North American market. As much as we'd love to see the svelte V40 on American roads, we're pretty sure the automaker is looking to fill its US station wagon void with the V60.
The 2014 Volvo V60 is part of a comprehensive lineup update that was unveiled earlier this month in Geneva, and it would give Volvo dealers a conventional wagon (not including the XC70) for the first time since the V70 and V50 were killed off. We'll still be keeping our fingers crossed for the stylish V40 hatchback or the fuel-efficient V60 diesel hybrid, but we have to wait until next week to find out for sure.

Volvo celebrates 20 years since 850 wagons came to BTCC

This year Honda Yuasa Racing brought a station wagon back to the ranks of competitors in the British Touring Car Championship (its drivers currently sit in third and fifth place in the Championship). In 1994, however, Volvo was the first team to run an estate in the series that's one of the best for delivering close racing.
Rickard Rydell and Jan Lammers drove the duo of 850 Estates prepped by Tom Walkinshaw Racing, lining up at Thruxton and proving that the rumors of a wagon in the series weren't a joke. The team used that year for development, getting the 2.0-liter, 290-horsepower, naturally aspirated five-cylinder engine ready for the next year's proper assault. The team's best finish over the 21 races was a fifth place, and they took 14th overall.
Rules changes led Volvo to switch to the 850 sedan the following year, but all the right noises had been made with the wagon. Rydell drive on to a third-place overall finish in 1995, three years later he claimed the Championship title. You'll find details and reminiscing from Rydell in the press release below, as well as the full video with scenes from the glory days.