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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 recalling 40k+ motorcycles to replace rear wheel flange

A problem with the rear wheels on a wide array of its motorcycles has prompted BMW and the National Highway Traffic Safety Administration to issue a recall for 43,426 vehicles. In the affected units, the mounting flange on the rear wheel is at risk of cracking if the bolts are over-tightened. If that flange cracks, "the rear wheel may not remain secured to the motorcycle," which is kind of important considering there are only two wheels on a motorcycle to start with. The recall affects certain model-year 1200 and 1300 models – including the R1200GS, R1200RT, R1200GS, R1200R, R1200S, R1200ST, K1200S, K1200R, K1200R Sport, K1200GT, K1300S, K1300R and K1300GT – as well as the HP2 Megamoto, HP2 Enduro and HP2 Sport. Owners of the affects units can expect to head from the manufacturer to arrange having the aluminum flange replaced with a steel one. Related Video: RECALL Subject : Rear Wheel Mounting Flange may Crack Report Receipt Date: MAR 11, 2015 NHTSA Campaign Number: 15V141000 Component(s): WHEELS Potential Number of Units Affected: 43,426 Manufacturer: BMW of North America, LLC SUMMARY: BMW of North America, LLC (BMW) is recalling certain model year 2005-2010 R1200GS and R1200RT, 2006-2010 R1200GS Adventure, 2007-2010 R1200R, 2007 R1200S and K1200R Sport, 2005-2007 R1200ST, 2008-2009 HP2 Megamoto, 2006 HP2 Enduro, 2008-2010 HP2 Sport, 2005-2008 K1200S, 2006-2008 K1200R, K1200GT, 2009-2011 K1300S, 2010-2011 K1300R, and 2009-2010 K1300GT motorcycles. In the affected motorcycles, the rear wheel mounting flange may crack if the rear wheel mounting bolts are over tightened. CONSEQUENCE: If the rear wheel mounting flange cracks, the mounting bolts may loosen and the rear wheel may not remain secured to the motorcycle, causing a loss of stability and increasing the risk of a crash. REMEDY: BMW will notify owners, and dealers will replace the existing aluminum rear wheel flange with a steel one, free of charge. The recall is expected to begin April 21, 2015. Owners may contact BMW customer service at 1-800-525-7417. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Featured Gallery BMW HP2 Sport View 13 Photos News Source: National Highway Traffic Safety AdministrationImage Credit: BMW Recalls BMW Motorcycle bmw motorrad

BMW M3, M4 let loose on the 'Ring

We just posted our first drive of the 2014 BMW 435i yesterday, but for those wanting even more power from this stylish coupe, help is on the way. From the sounds of it, BMW will be showing off a production-ready concept previewing the M4 next month at the Pebble Beach Concours d'Elegance, but until then, we have some new spy shots of the performance coupe being tested at the Nürburgring, along with its four-door counterpart, the M3.
Despite all the camouflage, it doesn't take much imagination to picture what both cars will look like, since we can clearly see the more aggressive front fascia and beefier brake setup. One interesting element we see on both cars is a double bubble roof that is almost certainly made from carbon fiber. Based on our report earlier, both the M4 Coupe and M3 Sedan are expected to debut at the 2014 Detroit Auto Show.