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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

BMW i3 gets official worldwide

Even though we recently drove a near-production version of the BMW i3, the car still wore light exterior and interior camouflage. Today, BMW took off that little bit of camo and made a big announcement: The i3 will go on sale in the US for $41,350 in the second quarter of 2014. That does not include any state or federal incentives that could lower the price or the $925 destination fee. The i3 will debut with three trim levels, which BMW is referring to as Worlds: Mega (standard in the US), Giga and Tera.
The BMW i3 is chock-full of new technology afforded by its design as an EV from the start of development, which has resulted in a vehicle layout unique to the i3. BMW has named it LifeDrive architecture, and it features the Life Module and the Drive Module. The Life Module is the i3's pillar-less passenger cell, which is the first mass-produced monocoque made of carbon fiber reinforced plastic (CFRP). The tougher-than-steel material is also 30-percent lighter than aluminum, which contributes to the i3's relatively light weight of 2,700 pounds (preliminary US figure) and, in turn, increases its energy efficiency. Expect more of this technology to find its way into future BMWs.
The Drive Module, a 100-percent aluminum chassis mounted under the Life Module, houses everything that makes the i3 go. It includes the 22-kilowatt, 450-pound lithium ion battery mounted as centrally as possible, and provides power to a rear-mounted electric motor that turns the rear wheels. With 170 horsepower and 184 pound-feet of torque from zero rpm, the single-gear i3 can accelerate from 0-30 miles per hour in 3.5 seconds and 0-60 mph in about 7.0 seconds, but it has a top speed of only 93 mph. BMW says the i3 has a real-world EV range of 80-100 miles, and the standard charger can fill the battery in three hours. Opt for the SAE DC Combo Fast Charger and 30 minutes is all it takes for a full charge; 20 minutes will bump the battery to 80 percent. For customers who have range anxiety, BMW gives them the option to install a 34-hp, 650cc two-cylinder generator as a range extender for the electric drive system.

Porsche tops JD Power APEAL study for 12th time

JD Power's 2016 Automotive Performance, Execution, and Layout (APEAL) study hasn't changed much this time around with Porsche coming in at No.1 for the 12th consecutive year, while BMW was close behind in second. Jaguar and Mercedes-Benz tied for third with Land Rover, Lexus, and Lincoln tied for No.5. The APEAL Study, according to JD Power, measures owners' level of excitement and emotional attachment across 77 parameters. Brands and cars are rated on a 1,000-point scale. The study found that new cars with modern safety features including low speed collision avoidance and blind spot monitoring have higher APEAL scores than vehicles without the features. The overall industry score increased from 798 to 801, which JD Power claims was helped by the launch of a variety of new vehicles. This year, 22 out of 30 new or redesigned cars received a higher score than the vehicle's respective segment average. Porsche is once again at the top of the list as the automaker's score increased by three points to 877. BMW outscored Jaguar to take second place with a score of 859, while the British automaker dropped three points from last year with 852 points. Volkswagen overtook Mini to become the top-ranked non-premium brand with 809 points, while the latter automaker trailed behind by one point. At the end of the scale, Smart came in at the very bottom for the second year in a row with a score of 745 points, which represents an increase of 62 points over last year. Fiat's score increased by six points to 755, but still confined the automaker to second-to-worst place for a consecutive year. Mitsubishi's score increased to 770, up from 755, to become the fourth-worst brand, while Jeep fell to third-worst with a decrease in seven points to 756. General Motors received six segment-level awards, followed by Hyundai with five, and BMW and VW earning four apiece. Surprise segment victories include the Chevrolet Camaro, which outscored the Dodge Challenger, and the Lexus RC which ranked above the BMW 4 and 3 Series. For more information on how the automakers ranked, check out the official release on the 2016 APEAL Study below or visit JD Power's website to analyze the graphs. Related Video: Porsche Ranks Highest in APEAL for 12th Consecutive Year; General Motors Receives Six Segment-Level Awards, Hyundai Motor Company Receives Five DETROIT: 27 July 2016 — Popular driver-assist technologies help make vehicles considerably more appealing to their owners, according to the J.D.