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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.

LA Design Challenge invokes biology for 2025 concepts [w/poll]

Participants in the annual LA Design Challenge always manage to come up with edgy, wacky designs for future vehicles, but with a theme of "Biomimicry and Mobility: 2025" this year's crop of cars might be the quirkiest we've ever seen. As usual, automotive designers from around the world participated in this year's competition, and all the designs will all be unveiled next week during the LA Auto Show with a winner being announced on November 21.
Chinese automakers made a strong showing with Qoros, SAIC Motor, JAC Motors (the company responsible for the Ford F-150 clone) and Changfeng all bringing interesting takes on the biology, human intelligence and sustainability theme. One of the more innovative ideas among these automakers is the Qoros Silk Road System allows autonomous vehicles to drive in packs similar to how ants travel. Speaking of ants, the SAIC Motor Mobiliant (shown above) gets its design from the shape of an ant's body, and, like the insect, it can climb building acting as a personal elevator as well. The JAC Motors design also merges vehicle and building design, while the Changfeng LaBrea inspired by the design of muscle fibers.
Other entrants include Subaru and US-based design teams for BMW, Toyota and Mazda. BMW's duo of concepts mimic plant and animal life. The LA Subways concept acts as a submersible, single-person vehicle to take advantage of the LA river, with a shape similar to an Ocean Sunfish. The Sustainable Efficient Exploratory Device (SEED) imitates the shape of a seed pod, and uses propulsion methods inspired by a shark, dragonfly and a water bug. Mazda's Auto Adapt might be the most car-like concept of the bunch, while the Subaru Suba-Roo and the Calty-designed, Toyota e-grus are the most mind-blowingly awesome.

Alpina D3 Bi-Turbo torquing its way toward Frankfurt

Few tuners benefit from the kind of factory support that Alpina does, giving the pseudo-aftermarket firm nearly as much official status as BMW's own M division. And this is its latest product.
Set to debut, as expected, at the Frankfurt Motor Show this week is the new Alpina D3 Bi-Turbo, which you can consider, for all intents and purposes, the diesel M3 that BMW never built. While the outgoing D3 (which was Alpina's best-selling model) used a four-cylinder engine, Autocar reports that the new model packs a 3.0-liter, twin-turbo inline-six diesel to drive a respectable 345 horsepower but a mammoth 516 pound-feet of torque to either the rear wheels or all four through the optional availability of xDrive. (European buyers will also be able to choose between sedan and wagon bodystyles.)
The engine is the same as you'd find in the XD3 and D5 (Alpina's diesel performance versions of the X3 and 5 Series, respectively), but in the lighter 3 Series form can propel the D3 Bi-Turbo up to 62 miles per hour in 4.6 seconds and on to an Autobahn-crunching top speed of 173 mph. And as per Alpina tradition, visual cues are minimal, with a subtly optimized aero kit and 19- or available 20-inch alloy wheels. Unfortunately, the 7 Series-based B7 is the only Alpina we get on this side of the Atlantic, but an oil-drenched performance enthusiast can dream.