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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 confirms new Mexican plant

After over a year of speculation, BMW is finally officially announcing that it's building a factory in Mexico. The new plant will cost the German automaker roughly $1 billion US and will have a capacity of about 150,000 vehicles a year when complete. However, production won't begin there until 2019.
The new factory is being built near the city of San Luis Potosí, Mexico, with plans to employ about 1,500 people. Unfortunately, BMW is still mum about which models it's producing south of the border. Earlier rumors indicated the possibility of the 3 Series, 1 Series and maybe even Mini models there.
BMW says Mexico's multiple free trade agreements are a major factor in the choice of location of the plant. They make it possible for the automaker to ship models more cheaply to North America, parts of South America and the European Union. "The Americas are among the most important growth markets for the BMW Group. We are continuing our strategy of 'production follows the market,'" said Harald Krueger, the board's head of production, in the company's official announcement.

BMW Concept Active Tourer Outdoor enjoys a day in the sun

This BMW Concept Active Tourer has evolved for the nature and cycling set and premiered at OutDoor Friedrichshafen, a trade fair in held this month in Germany. The sturdy wagon is tweaked with new materials, accessories and ConnectedDrive features for those who do a lot of their living under the sky as opposed to inside their cars.
Under the hood is the same plug-in hybrid drive system we've were introduced to in 2012, featuring a transversely-mounted, 1.5-liter turbocharged three-cylinder engine paired with an electric motor and a battery pack under the rear compartment floor. Total output is 190 horsepower and 147 pound-feet of torque headed to the front wheels, a claimed time from zero to 62 of under eight seconds, a pure electric range of up to 19 miles, a top speed of 124 miles per hour and claimed fuel economy of around 95 US miles per gallon.
The space behind the rear seats is the showcase, with a transformable compartment that can stow two bikes on built-in, retractable carriers. Remove the front wheel and seat from the bikes, then the frames can be locked into place using two rails and brackets. The wheels can be stowed in a holder attached to the right rear seat, the saddles can go into a compartment in the load floor. If you need to make a quick adjustment or a fix, you can do so since the bikes are aligned across the load bay.