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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 X1 testing is underway

It was just a few weeks ago that we got our first glimpse of the next-generation BMW X1, riding around on a flatbed. Now, we have the first batch of images of the small crossover moving under its own steam.
Like the previous round of photos, BMW's psychedelic camouflage is on hand to obscure sheetmetal details, but our intrepid spies still managed to discover a bit about the new X1. It's internal code-name will be F48, and it will sit on the same platform as the next-generation Mini and the BMW 1 Series GT. And for those keeping track at home, those are both front-drive platforms.
The reasoning for the X1's new layout, though, is understandable. Front-wheel drive is more space efficient and affordable, which are kind of big deals to customers. The next X1 won't be limited to its front wheels, though, as BMW's xDrive system is almost a certainty on higher-end trims.

2014 BMW 328d xDrive Sport Wagon

There's a running joke among auto writers that the perfect car would be a diesel-powered, rear-drive wagon with manual transmission and no power accessories whatsoever. It would only be available in brown and would somehow be as fun to drive as a Mazda MX-5 Miata. Makes total sense, right?
Realistically, no manufacturer is ever going to completely fulfill our wishes, no matter how much we beg, plead, kick and scream about our dream car that most of us would actually never buy. The best we can do is hope for a vehicle that mixes some aspects of this ideal journalist's car. And in today's world, that vehicle just might be the BMW 328d xDrive Sport Wagon.
No, it's not available with a manual gearbox, and power can only be sent through an xDrive all-wheel-drive system. It's also not available in brown (although both Mojave Metallic and Sparkling Bronze Metallic are acceptable stand-ins), but it ticks the two main boxes of being a diesel-powered wagon, one of only a couple such models in the United States.