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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 could add all-electric Mini, X3 SUV

BMW's Mini sub-brand will add a battery-electric variant as the company looks to meet stricter emissions mandates around the world, according to an interview Bloomberg News conducted with CEO Harald Krueger. BMW is also planning an all-electric version of its X3 SUV and may start greening up models as large as its 7 Series sedan, though that prospect is far cloudier. The all-electric Mini will be available to the public as soon as 2019, while the battery-electric X3 SUV will likely start sales the following year. BMW didn't offer specifics about how much those models would cost or far they will be able to travel on a full electric charge, with Krueger only saying single-charge ranges would be "competitive" with other all-electric models. BMW this summer upgraded the battery in its i3 electric vehicle and boosted its single-charge range by about 40 percent to 114 miles. As for demand for BMW's i sub-brand vehicles, US sales of the i3 through September fell 27 percent to almost 5,800 vehicles, while sales of the i8 plug-in hybrid are down 19 percent to about 1,100 units, BMW said on Monday. Meanwhile, word got out earlier this year that BMW may dedicate the Rocketman concept hatchback as Mini's entrant to the electric-vehicle sector. BMW actually used a Mini as its first electric testing vehicle. The Mini E was produced in 2009 and 2010 before giving way to the BMW ActiveE, which was actually a converted 1-Series vehicle. Eventually, BMW started producing the i3. Related Video: Featured Gallery Mini Rocketman Concept View 25 Photos News Source: Bloomberg News Green BMW MINI SUV Electric

Watch man destroy his M6 'lemon' with a sledgehammer and ax

Just to be clear, the owner of this BMW M6 isn't ready for another one. He and his friend destroyed the V10-powered coupe in anger at the entrance to the Frankfurt Motor Show in a decidedly public fashion. Bild and GT Spirit report that the owner was angry over mysterious quality and reliability issues that he claims BMW wasn't able to fix. What we have here, folks, is claimed to be a very expensive lemon.
As the story goes, owner Pourmohseni Hadi bought the 2007 M6 in 2008, and five years later, he is still complaining about mysterious vibrations, rattles and severe jolts during gear changes - the latter he says have caused passengers to become nauseous. The car was taken to several BMW repair shops in Italy and Hadi says he he has written a letter to the automaker about his issues, but the car was never fixed and the letter unanswered, he claims. What we don't know is how many miles the car has been driven and when all these problems started happening. The situation reminds us of a certain Lamborghini Gallardo from a couple years back.
While we understand Hadi's frustration, perhaps an M6 just doesn't suit his tastes. After all, we'd be lying if we said a perfectly functioning M6 of this generation wasn't bumpy over uneven surfaces and wouldn't make some passengers nauseous, with its stiffly sprung suspension and dizzying 500-horsepower V10. Anyone wanna bet his M6 was equipped with one of BMW's notoriously abrupt SMG single-clutch gearboxes?