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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.

Next-gen Mini could sire 10 different models including PHEV

The first generation of the reimagined, BMW-backed Mini was a simple things, confined to two body styles - hatchback and four-seat convertible. It wasn't until the second-generation platform came along that Mini began truly expanding, offering a long-wheelbase model, a roadster, a coupe, a five-door crossover, and a three-door, um, thing?
BMW is aiming for 10 to 12 different vehicles from just two brands off one platform.
According to an interview between Automotive News Europe and the BMW board member that oversees Mini, Peter Schwarzenbauer, the funky British brand will be expanding far beyond the seven body styles it currently offers. "With the new ULK architecture, we currently have in mind eight to 10 models," Schwarzenbauer told ANE. That architecture he mentions, will also underpin the BMW 1 Series GT and the BMW X1, meaning that BMW is aiming for 10 to 12 different vehicles from just two brands off one platform (and that's only what we know about).

Driving the 2025 Genesis GV80 Coupe and Ford Explorer | Autoblog Podcast #844

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Electric, John Beltz Snyder. John recently attended the launch of both the 2025 Genesis GV80 Coupe and the 2025 Ford Explorer. In the fleet, we've been driving the Jeep Gladiator, BMW 5 Series and Chrysler Pacifica Plug-In Hybrid. In the news, Nissan has updated the Frontier for 2025, while the 2025 Toyota GR Corolla gets an available automatic transmission. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #844     Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving 2025 Genesis GV80 Coupe 2025 Ford Explorer 2024 Jeep Gladiator 2024 BMW 530i xDrive 2024 Chrysler Pacifica Plug-In Hybrid 2025 Nissan Frontier gets a suite of meaningful upgrades 2025 Toyota GR Corolla gets available automatic transmission Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related Video:  2025 Explorer SUV interior review This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.