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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 slapped with discrimination suit by EEOC

According to a report from CNNMoney, BMW has been hit with a lawsuit from the US Equal Employment Opportunity Commission after revised criminal background check policies resulted in the dismissal of 88 contractors, 70 of whom (that's about 80 percent) were black. A total of 645 contractors were required to submit to background checks at BMW's facility in Spartanburg, South Carolina after BMW switched contract companies at its plant.
Though the 88 persons who were not rehired by the new contractor all had criminal records, that may not necessarily be a legal way to screen applicants, as the EEOC counters: "BMW's policy has no time limit with regard to convictions. The policy is a blanket exclusion without any individualized assessment of the nature and gravity of the crimes, the ages of the convictions, or the nature of the claimants' respective positions."
BMW's actions were in violation of the Civic Rights Act of 1964, according to the EEOC, because they utilized "a criminal conviction policy that disproportionately screened out African-Americans." A recent bulletin offering guidance from the EEOC on the Civil Rights Act can be found here, but the EEOC's stance on the issue has been the same for years: "Since issuing its first written policy guidance in the 1980s regarding the use of arrest and conviction records in employment decisions, the EEOC has advised employers that under certain circumstances, their use of that information to deny employment opportunities could be at odds with Title VII."

2015 BMW 4 Series Gran Coupe

It's hard to say what a coupe is anymore. Is it merely a car with two doors? Does it have to have an arching roofline? Do frameless windows count for anything? Can a five-door hatchback or even an SUV be a coupe? At some point in the last few years, nearly everything we thought made a coupe a coupe has been challenged by something that calls itself a coupe, but to most people isn't. Our friends at BMW have led most of this line of questioning.
The new 2015 BMW 4 Series Gran Coupe is one of the latest Bimmers to challenge the moniker (which also challenges the idea of "Gran," for that matter), and unlike some of its other "coupe" variations - we're looking at you, X6 - this one is a pretty one. The 4 Series Gran Coupe is essentially a four-door version of the 4 Series, which is itself a two-door version of the 3 Series. Huh? Wouldn't that simply make it another 3 Series? Of course, but this one is prettier, as it uses the 4's sexier body styling, with its lower nose, wider-looking stance and edgier lighting graphics. It is also technically a five-door hatchback, not a sedan per se, and it utilizes frameless side door glass, which apparently does count for something in BMW coupe-land. Significantly, the 4 Gran Coupe's wheelbase is identical to the two-door; if it was longer - as is the case with the 3 Series and 5 Series hatchbacks - that might make it a "Gran Turismo." Confused yet?
We recently got our first chance to drive the 4 Series Gran Coupe at a press launch in Spain, and while the only version we were given was a rear-drive 428i Gran Coupe with the M Sport contents, the harrowing roads around Bilbao gave us a good idea of what this car is all about from a driving dynamics standpoint. Here's some of what we found: