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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 recalling nearly 570,000 1 Series, 3 Series and Z4 models over electrical issue

BMW is recalling roughly 570,000 vehicles in the United States and Canada due to faulty battery cable connectors that can fail, causing the engines in these cars to stall. Of the nearly 570,000 affected vehicles, just over 504,000 are here in the US.
The affected vehicles include 1 Series coupes and convertibles (both 128i and 135i) from the 2008 to 2011 model years; 3 Series sedans, coupes, convertibles and sport wagons (both 328i and 335i) from the 2007 to 2011 model years; and Z4 roadsters from the 2009 to 2011 model years.
According to the National Highway Traffic Safety Administration, "the connector for the positive battery cable connector and the corresponding terminal on the fuse box may degrade over time," which can eventually lead to a break in the electrical connection and a loss of power in the vehicle. If the car loses power, the engine can stall, which could possibly lead to a crash. The Detroit News reports that BMW knows of one minor collision in Canada as a result of this problem, but no injuries.

BMW recalling 1 Series ActiveE over bad drivetrain housing

There are always growing pains when automakers introduce new technologies. BMW is learning this with the electric powetrain used on the 2011 BMW ActiveE. According to the National Highway Traffic Safety Administration, about half of the all-electric 1 Series coupes currently in the hands of the public are being recalled for a potential problem that could leave the cars stranded.
With 700 ActiveE models running around the US, 360 of these cars have insufficient sealing between the electric motor and transmission, which could lead to premature wear to the connection between the two, which in turn could result in a loss of propulsion. BMW started notifying affected owners by phone earlier this month.
While no automaker wants a recall on its hands, it's much better for BMW to learn such a lesson now on the low-production, lease-only ActiveE ahead of the car's successor, the BMW i3, which is expected to be a much higher-volume EV. Scroll down for the official recall notification.