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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 wants world drifting record back in US

BMW just can't stand the thought of the world record for the longest drift winding up in the hands of someone else. The German automaker is set to take a crack at setting a new record by blowing the old one straight out of the water. A driver in China holds the current title after kicking a car sideways for a full 3.6 miles. Now, on May 11, BMW Performance Driving Instructor Johan Schwartz will attempt to pitch a BMW M5 sideways for some 40 miles as part of a stunt to raise funds for the BMW Pro-Am Charity.
We've had the distinct pleasure of riding with the instructors at the BMW facility in South Carolina, and we can tell you that if anyone can keep an M5 at full tilt for 40 miles, it's these guys. BMW has released a teaser video to drum up attention for the stunt. You can catch it below.

2015 BMW Alpina B6 Gran Coupe challenges the M6 in New York

Despite being a well-respected outfit for decades, Alpina remains something of a mystery to many stateside BMW fans. In Europe, Alpina has established itself as a first-rate source for breathed-upon high-performance Bimmers, and it's looking to continue picking up traction on our shores. The US has received a handful of Alpina models through BMW factory channels, namely the 7-Series-based B7, and now we're getting another fast four-door with the debut of the BMW Alpina B6 xDrive Gran Coupe at today's 2014 New York Auto Show.
The B6 Gran Coupe stands as an interesting sibling to the factory's M6 Grand Coupe. Both are propelled by a 4.4-liter twin-turbo V8, but the tunes are quite different. The Alpina produces 540 horsepower and 540 pound-feet of torque, which is 20 hp less than the M6, but with 40 lb-ft more torque. An eight-speed automatic and all-wheel drive mean that the B6 is about half a second quicker to 60 miles per hour than BMW's own creation. Plus, the B6 has an unrestricted top speed of 198 mph, making it one seriously rapid 6 Series Gran Coupe.
The sport sedan also wears other Alpina goodies like 20-inch versions of the brand's 21-spoke wheels and exclusive color options. The B6 Gran Coupe goes for $118,225 (including destination), and will be available through BMW dealers immediately after the auto show ends. More info about the B6 is in the release below.