Executive Package, Bang & Olufsen Audio, Heads-up Display, 20" M Light Wheels on 2040-cars

Auto blog

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 to change model designations, further yet from actual displacement?

Once upon a time, you could look at the back of a trunk lid of a BMW and come up with a pretty fair idea of what sat under its hood. For example, a 320i was a 3 Series with a fuel-injected, 2.0-liter engine, a 328i was a 3 Series with a fuel-injected, 2.8-liter engine and a 328Ci was a two-door 3 Series with the same engine. Those were good days.
Today, though, that simplicity is dead and gone. A 328i now has a 2.0-liter engine, just like the 320i, while the simple "C" designation that was affixed to two-door models has been replaced with a "4," so we have a 428i and a 435i. It gets worse, though. A 550i uses a 4.4-liter, twin-turbocharged V8 (it should be a 544ti, although we'd be willing to hear an argument for "tti") and a 740i uses a 3.0-liter, turbocharged six-cylinder, which is the same engine found in a 535i. It's madness.
And, well, it's about to get madder, if a post on a BMW enthusiast forum is to be believed. According to f30post.com, we could see a shakeup in at least the 3 and 4 Series nomenclature, thanks to an impending refresh that will see the addition of new, turbocharged four- and six-cylinder engines, codenamed B48 and B58, respectively.

BMW and Mini getting GoPro integration

The small, high-quality and relatively inexpensive GoPro camera has been revolutionary for Internet video, especially of cars. Imagine how much awesomeness and hilarity we would have missed without them. Finding ways to integrate the cams into performance cars is becoming increasingly popular among automakers, as well. For example, the 2015 Chevrolet Corvette has its Performance Data Recorder, and Volkswagen is giving GoPros to early buyers of the 2015 GTI. BMW Group is going straight to the source for its rendition, though, with a new app that allows drivers to control a GoPro from inside of some BMW and Mini vehicles.
In July, owners with 2012 or later models equipped with BMW Apps or Mini Connected can download the new app. There are a few hurdles to jump over, though. Not only do users need a model with the infotainment system, a WiFi-equipped GoPro camera is also required. The app also must be installed on an iPhone connected to the vehicle.
Once all of those stipulations are met, the app can configure and control the GoPro through iDrive and display a nearly live image on the infotainment system. Menus are simplified on-screen but still allow users to select among six camera modes, aim it and start and stop recording. While filming, it shows recording time, battery life and signal strength. While BMW's approach isn't quite as nicely integrated as the Corvette's solution, it's interesting to see automakers working to make filming easier. Scroll down to read the full announcement.