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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.

Are you the 2016 BMW M2?

From the looks of these spy shots, BMW is back testing the hotter version of the M235i, the M2. We first brought you pictures of the lightly disguised coupe a few weeks back. While those original shots were on the road, it would seem that BMW has transitioned its testing to the Nürburgring.
Here, we get a better look at the M2 prototype's M-spec wheels. This particular car is missing the traditional quadruple exhausts that serve as an easy identifier for BMW M products, although our spies report that the tips, along with a more assertive front fascia, will arrive when the M2 makes its production debut.
We can't yet confirm any powertrain details, but previous rumors had the M2 getting its go from a tuned version of the brand's N55 turbocharged inline-six. Take a look up top for this latest round of spy photos of the BMW M2.

BMW i3 gets official worldwide

Even though we recently drove a near-production version of the BMW i3, the car still wore light exterior and interior camouflage. Today, BMW took off that little bit of camo and made a big announcement: The i3 will go on sale in the US for $41,350 in the second quarter of 2014. That does not include any state or federal incentives that could lower the price or the $925 destination fee. The i3 will debut with three trim levels, which BMW is referring to as Worlds: Mega (standard in the US), Giga and Tera.
The BMW i3 is chock-full of new technology afforded by its design as an EV from the start of development, which has resulted in a vehicle layout unique to the i3. BMW has named it LifeDrive architecture, and it features the Life Module and the Drive Module. The Life Module is the i3's pillar-less passenger cell, which is the first mass-produced monocoque made of carbon fiber reinforced plastic (CFRP). The tougher-than-steel material is also 30-percent lighter than aluminum, which contributes to the i3's relatively light weight of 2,700 pounds (preliminary US figure) and, in turn, increases its energy efficiency. Expect more of this technology to find its way into future BMWs.
The Drive Module, a 100-percent aluminum chassis mounted under the Life Module, houses everything that makes the i3 go. It includes the 22-kilowatt, 450-pound lithium ion battery mounted as centrally as possible, and provides power to a rear-mounted electric motor that turns the rear wheels. With 170 horsepower and 184 pound-feet of torque from zero rpm, the single-gear i3 can accelerate from 0-30 miles per hour in 3.5 seconds and 0-60 mph in about 7.0 seconds, but it has a top speed of only 93 mph. BMW says the i3 has a real-world EV range of 80-100 miles, and the standard charger can fill the battery in three hours. Opt for the SAE DC Combo Fast Charger and 30 minutes is all it takes for a full charge; 20 minutes will bump the battery to 80 percent. For customers who have range anxiety, BMW gives them the option to install a 34-hp, 650cc two-cylinder generator as a range extender for the electric drive system.