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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.

MW's new Driftmob video shows the M235i like you've never seen it before

Last month, we went behind the scenes of the filming of BMW's new Driftmob, web video, bringing you one post from the practice sessions, and another from the shoot itself, which took place in an enormous traffic circle in Cape Town, South Africa. Today, BMW has launched the final version of Driftmob, and it's pretty damn cool.
The plot is pretty simple: just like a flashmob, in which people invade a location and perform choreographed dances to music, much to the delight of surprised onlookers, the "driftmob" features a quintet of red M235i coupes that take over a traffic circle and perform choreographed dances - sideways - to the delight of onlookers. The only differences are that, in this case, the onlookers are mostly paid extras (though there were many unwitting passersby that joined the crowd at times) and the only music is a constant squealing of tires-a sweet song if we ever heard one. Then, after about two minutes of tire-smoking shenanigans, the coupes vanish.
As promised, we will have a more detailed, behind the scenes story about the filming of the video, including insights from Rhys Millen, Samuel Hübinette, Dai Yoshihara, Rich Rutherford, and Conrad Grunewald, the five guys who executed these remarkable stunts. Meanwhile, we hope you enjoy the short flick.

BMW shows up-armored X5 concept and we can't get near it

BMW has brought a slightly different concept vehicle to the 2013 Frankfurt Motor Show. Rather than something that foreshadows a future product or a new design direction, the Munich-based manufacturer has brought an X5 that's designed to be shot at. It's called the Concept X5 Security Plus. The Concept X5 name is a bit misleading, though. It's based on the 2014 X5, while BMW already builds an armored CUV, called the X5 Security. The concept tag has to do with the "Security Plus" part.
Engineered to be compliant with VR6 security standards - the current X5 Security is for VR4 standards - the Concept X5 will quite happily shrug off direct attacks from an AK-47. Thanks to sealed joints, high-strength steel moldings, high-performance steel body panels and special, polycarbonate-coated security glass, Kalashnikov's finest, whether used as a firearm or as a melee weapon, would be useless against this X5.
Built alongside the standard X5 in BMW's Spartanburg, SC factory, the X5 is shipped to a BMW facility in Toluca, Mexico for installation of the armor and security features. The company claims this delivers a more thoroughly engineered protective solution than aftermarket retrofitting.