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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 DTM champ swaps rides with Mini's Dakar winner

BMW may not race in F1 any longer, and it doesn't compete with Audi and Porsche in the LMP1 class at Le Mans. It even shut down Mini's short-lived effort on the World Rally Championship. But that doesn't mean it doesn't race at all. In fact it's the current reigning champion both in DTM and at Dakar. So to highlight its varied motorsport programs, the German automaker had two of its top drivers swap rides. German driver Martin Tomczyk, who won the DTM title in 2011 and now drives for BMW, took to Nasser Al-Attiyah's Mini All4Racing Countryman on the sand dunes of Dubai. Meanwhile the Qatari driver, who has won the Dakar Rally two times now, took to the wheel of Tomczyk's BMW M4 DTM around Oschersleben in Germany. They even repeated the game of musical chairs at Hockenheim over the weekend. If anything, the promo clip shot by Red Bull just goes to show how different the varied racing machinery can be, and the challenges posed to racing drivers switching between disciplines. But lessons aside, it's a cool clip, so check it out above. Two champions swap cockpits: Martin Tomczyk drives the MINI ALL4 Racing, Nasser Al-Attiyah the BMW M4 DTM. Munich (DE), 1st May 2015. From asphalt to sand and back again: BMW DTM driver Martin Tomczyk (DE) and MINI ALL4 Racing ace Nasser Al-Attiyah (QA) both entered unfamiliar territory and took each other's cars for a test drive. As part of a video shoot for BMW Motorsport Premium Partner Red Bull in Dubai (AE), Tomczyk, a proven master of his trade on asphalt as the 2011 DTM Champion, took the wheel of the MINI ALL4 Racing, with which X-raid has won the famous Rally Dakar the last four years. During DTM testing in Oschersleben (DE), Al-Attiyah was given the opportunity to drive Tomczyk's BMW M Performance Parts M4 DTM. Two wins at the Rally Dakar are just some of the successes the rally driver from Qatar has had to date. He followed up his first victory in 2011 by winning in the MINI ALL4 Racing in January 2015. "Driving the MINI ALL4 Racing through the sand and over the dunes in Dubai was a fascinating experience and was so much fun," said Tomczyk. "The car has an incredible amount of torwue – and the test in the dunes was an amazing adrenalin rush even for an experienced race driver such as myself. It's totally different to driving on a circuit.

KBB 2013 Brand Image Awards has some obvious and oddball winners

The sixth edition of the Kelley Blue Book Brand Image Awards have crowned a wide range of winners - in a couple of cases the recipient of the laurels might say more about KBB users than they do about the actual winner. Compiled from the responses of more than 12,000 shoppers on KBB.com over the past year, there are 13 categories broken into non-luxury, luxury and truck segments "representing the combined wisdom of the American car-buying public."
The award categories have been revamped this year, with some dropping off, some new ones appearing and at least one other given a new term. What isn't surprising is that Honda won Most Trusted Brand for the second year running, Best Value Brand for the third year in a row and took Best Overall Brand, which wasn't on last year's list of awards.
On our own shores, in the non-luxury categories Chrysler got Most Refined Brand and Buick took Best Value Luxury Brand. Neither one of those marques won anything in last year's Brand Image Awards, while Cadillac, which won Best Interior Design Brand and Best Comfort Brand last year - those awards disappeared this year - went home without a single accolade.