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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 called 'most revolutionary car' since Ford Model T

The Ultimate Driving Machine, or at least one of them, may also be the Ultimate Engineering Success. Consultant Munro & Associates, which specializes in automotive tear-down analysis, pretty much said as much when taking an under-the-skin look at the BMW i3 plug-in. In short, the firm liked what it saw. Presenting at Detroit's Plastic's in Automotive conference this week, Munro CEO Sandy Munro called BMW's first mast-produced plug-in model the most revolutionary car "since Henry Ford's Model T." The car earned big points for its substantial uses of materials that are both lightweight (key for any plug-in's range) and recyclable. BMW has touted these advantages all along. In late 2013, the German automaker went as far as saying its use of carbon fiber reinforced plastic (CFRP) would reduce customer costs related to both repair and insurance. The i3 went on sale in the US last May and, by the end of the year, moved more than 6,000 units here. It sold almost 17,800 The i3 last November also was named the Green Car of the Year at the Los Angeles Auto Show, beating out models such as the compressed-natural-gas-powered Chevrolet Impala B-Fuel and the Audi A3 TDI diesel. Munro made news earlier this week when it offered a free i3 for anyone who bought the master- or OEM-level version of the report, though the report isn't cheap and that offered disappeared once Munro made his presentation. Check out Munro & Associates' press release below. Munro Discusses Groundbreaking Technology Finds from BMW i3 Teardown at Plastics in Automotive Conference; Offers New BMW i3 for Purchasers of Master-level Report DETROIT, Jan. 14, 2015 /PRNewswire/ -- During today's Plastics in Automotive Conference in Detroit, Sandy Munro, CEO of Munro & Associates, Inc., discussed – for the first time publicly – his consulting firm's findings from its extensive deep-dive teardown, costing and benchmark study of the BMW i3 urban electric car. During his presentation, "Deconstructing the BMW i3: Groundbreaking Technology and the Composite Car," Munro discussed the carbon fiber life module, polymer components, recyclability and safety of what he considers to be "the most revolutionary car in terms of creative engineering and manufacturing since Henry Ford's Model T." During the presentation, Munro focused on four crucial aspects of the BMW i3: the manufacturing of its carbon fiber life module; its polymer components; recyclability; and safety.

Mini Minor to be co-developed with Toyota

It was back in 2011 when Mini first showcased the prospect of an even smaller hatchback with the Rocketman concept at the Geneva Motor Show. In the nearly four years since, parent company BMW has hemmed and hawed on the possibility of putting it into production, but the latest word from Europe has it that the project is a go. According to Automobile magazine, Mini is realigning its product portfolio into five pillars: the essential hardtop we've already seen (available in two/three- and four/five-doors), the convertible, the upcoming new Clubman wagon (coming this summer with full-size auxiliary suicide doors on both sides), the next-gen Countryman crossover in 2016 and two new model lines. One will be the production version of the Superleggera roadster concept, earmarked for 2018. The other will be the Minor, a smaller city car reviving a long-gone model name and presaged by the aforementioned Rocketman concept. But for that last one, Mini won't go it alone. To develop the mini Mini, BMW will reportedly turn to its partnership with Toyota. The relationship is already set to yield a new Supra and Z4 and share fuel cell and other technologies. But this would broaden the partnership to include a small hatchback. However rather than use the existing (or next-gen) Aygo, which is already built under joint venture with PSA Peugeot Citroen (with which BMW previously had a joint engine venture), word has it that the BMW and Toyota will develop a new platform for the project – one that will be used by both partners. The new product plan doesn't leave much room for the Mini Coupe and Roadster (which have already been discontinued), for the Paceman three-door crossover (which will suffer the same fate) or for the projected seven-seater minivan. But the addition of the new Superleggera roadster and super-mini Mini aren't likely to leave us wanting for either. Related Video: