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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 will electrify all brands and model lines, including Mini

BMW has announced that it plans to produce a fully electric version of the three-door hatchback Mini. The car will go into production in 2019, and the battery electric drivetrain will be produced at BMW's Bavarian facilities, then transported to Plant Oxford where it will join the cars. BMW says there will remain a diesel variant in addition to the petrol, plug-in hybrid, and EV versions of the Mini. No prototype shots have been released of the upcoming cars; the current one was unveiled in late 2013. The UK production location isn't the only place where BMW builds Minis, as the former Volvo/Mitsubishi/Smart NedCar plant in the Netherlands has been tooled to build some of the 360,000 Minis built yearly. According to the BBC, UK Business Secretary Greg Clark considers the choice to build EV Minis in Britain a "vote of confidence" despite Brexit, and that it would see battery technology development boosted in the UK. By the time the EV version starts production, UK will likely have already left the European Union. The electrification of the Mini is part of BMW Group's continuing addition of full-electric or plug-in versions to all its brands and model series. Of all the vehicles it will sell in 2025, 15-25 percent will be electrified in one way or the other. Similarly to Volvo, BMW sees flexible production to be in a key position in the future: The facilities would have to be able to build all versions at the same time, as markets fluctuate depending on incentives and infrastructure. If EVs sell strongly, the production process can quickly respond to the demand. An electric Mini underwent trials back in 2008, so the full-scale production vehicle would have over a decade's worth of engineering behind it. Green BMW MINI mini ev bmw group

BMW i3s traction control tech going in all BMW, Mini cars

The BMW i3s is essentially a warmed-up version of the i3 electric car we all know and love. The performance boost isn't huge — just 14 horsepower and 15 pound-feet of torque — but it also gets a new suspension, wheels and tires as well as an improved traction control system. We found the car to benefit from all the updates when we drove it for our First Drive Review, but now BMW has offered up more details on just how the traction control system of the i3s helps make it better to drive. The company says it'll expand the technology to all future BMW and Mini models as well. The i3s's system is calibrated to help it to pull away quickly from a stop, making full use of the instantaneous torque offered by the electric motor. It also improves stability when accelerating out of corners, when using regenerative braking and, of course, when the road conditions are less than ideal. The results are palpable, and with the other improvements the i3s definitely feels stronger off the line, as we found on our drive. It's also about a half-second quicker to 60 miles per hour, at 6.8 seconds. The secret is in the response time of the stability control, which BMW claims is 50 times faster than the conventional system. This is made possible by moving the control process into the powertrain itself, rather than a remote unit. This reduces the signal path and, thus, the response time of the traction control system. BMW's Head of Chassis Development, Peter Langen, said of it, "With their high levels of torque and instantaneous responses to every movement of the accelerator, electric motors already make significantly higher demands on driving stability systems than conventional power units." While engineered to make the most of the electric motor, BMW says the shorter cycles of this traction control system show promise for internal combustion vehicles as well. As such, we'll begin to see the improved technology applied across the BMW and Mini lineups going forward. Related Video: