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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.

BMW's new strategy: Electric everything

Mercedes isn't the only car maker determined to beat Tesla before it gets huge. Sources speaking to German business daily Handelsblatt claim that BMW is in the midst of planning an executive shuffle that will also include a big shift in its electric vehicle strategy. While the company would still offer ground-up EV designs like the i3, the new strategy would greenlight electric versions of some of BMW's most important vehicles, including the 3-series sedan, X4 crossover, and iconic Mini. If the leak is accurate, management is likely to approve the change at the end of September. We've asked BMW for its take on the report, although it declined to comment to Handelsblatt. It wouldn't be shocking to see the Munich crew change tack, though. While Tesla has received hundreds of thousands of Model 3 pre-orders, i3 sales dropped in 2016 – the upscale (if oddly-shaped) EV just isn't as hot as it once was. If BMW electrifies some of its most popular cars, you wouldn't have to choose between a super-efficient, eco-friendly EV and the familiar designs of the brand's mainstream driving machines.The story originally appeared on Engadget, your guide to this connected life.Related Video: Featured Gallery Mini Vision Next 100 Concept View 38 Photos Green BMW MINI Electric Hybrid engadget

Next BMW 6 Series, M6 to take aim at Porsche

Since BMW reintroduced the 6 Series line back in 2003, the big two-door has happily sat as the brand's de facto grand tourer. That will allegedly change come 2017, as Car is reporting that Munich will put its coupe on a diet with the so-called G15 generation, allowing the 6 to go after the likes of Porsche. All three of the current 6's body styles will be carried over for 2017, with the base 640i Coupe trimming over 500 pounds of body fat, to around 3,450 pounds. Even the droptop is getting some lipo, dropping from 4,255 to around 3,750 pounds. It's unclear how much the Gran Coupe will be lightened, as it will be the only member of the 6 Series family that's growing in size. BMW will stretch the wheelbase of its fullsize, four-door coupe, which should make it decidedly more sedan like. The weight savings come thanks to a new modular architecture that promises a "more advanced material mix." That means carbon fiber, high-strength steel and aluminum elements, and even some titanium and magnesium bits. Along with xDrive all-wheel drive, Car is promising new six- and eight-cylinder engines, with the 640i's 3.0-liter, turbocharged gas engine producing 347 horsepower while the diesel mill turns out 333. The 4.4-liter V8 of the 650i will deliver 476 ponies, while the range-topping M6's twin-turbo V8 will reach the magical 600-hp figure. Of course, we can expect to hear more about the next 6 in the coming months and years. In the meantime, though, let us know what you think of Car's positing below, in Comments.