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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.

Chevy's low-cost pedestrian avoidance to debut on 2016 Malibu

The mainstreaming of safety technologies that began on luxury vehicles will get a big boost from General Motors later this year. The General says it plans to offer 22 driver assistance systems across its product portfolio of 2016 models, starting with the redesigned Chevrolet Malibu - the one that we know will keep tabs on teenagers for the benefit of parents. Pedestrian avoidance will be another of its available options. Instead of kitting the sedan out with numerous and expensive radar arrays, the GM system uses the camera mounted next to the rearview mirror that is already used for the lane-keeping function. New software lets it detect pedestrians, and when it detects a potential collision with one, it can alert the driver and brake autonomously if the driver doesn't react. Eventually, engineers want to give it the ability to do the same with cyclists. Because it uses existing hardware updated with new code, GM says the application costs "a few hundred dollars." GM demonstrated the Front Pedestrian Braking preventing a crash with a dummy pedestrian at speeds up to 15 miles per hour. Automotive News reports that it will reduce the severity of impact up to 40 miles per hour, but "may not be of much use in collisions at higher speeds." That feature will also join the options list of the Cadillac CT6. The press release below has more on GM's driver tech soon on the way. Related Video: GM Paving Way to Smarter and Safer Driving at All-New Active Safety Test Area 22 crash-avoidance technologies offered on 2016 Chevrolet, Buick, GMC and Cadillac models MILFORD, Mich. 2015-07-24 – Chevrolet, Buick, GMC and Cadillac will offer 22 different active safety technologies across their 2016 model year U.S. lineups, ranging from driver alerts to those that automatically intervene and assist the driver in critical situations. Safety engineers will develop and test these and other safety technologies for products around the world at GM's new, 52-acre Active Safety Test Area at its Milford Proving Ground near Detroit. The $14 million facility officially opened Friday. "Our comprehensive safety strategy of helping customers before, during and after a crash continues," said Jeff Boyer, vice president of GM Global Vehicle Safety.

BMW reclaims US luxury sales crown from Mercedes

The numbers, they are in: BMW has reclaimed the luxury-sales crown from Mercedes by a margin of 9,347 cars. Mercedes donned the king's headgear in 2013 after a strong final quarter of 2013 when the new CLA and S-Class poured out of dealerships. This year, led by the 3 Series/4 Series and X5, BMW sold 339,738 units – a 9.8-percent increase year-on-year. Mercedes, led by the C-Class and M-Class, saw its sales go up by 5.7 percent to 330,391 units. We'll have to wait a bit to see if there's another registrations-vs-sales challenge as in 2012, when BMW was anointed US luxury ruler. Behind them, a dark horse named Lexus nudged closer to the leading Teutons, selling 311,389 cars. The Japanese luxury automaker also had the biggest gain among the top three, its sales rising by 13.7 percent compared to 2013. Audi had the biggest sales of anyone among the top five, though, with a 15.2-percent gain to 182,011, which moved it a spot ahead of Cadillac; the Wreath-and-Crest brand dropped 6.5 percent to 170,750. Acura (167,843), Infiniti (117,300), and Lincoln (94,474) took the final positions. Speaking of Lincoln, sales at the once-mighty luxury marque stand as the mightiest jump of any on this list, up 15.6 percent. That's the power of Matthew McConaughey... and better cars and a new crossover, sure. So now that we're back to Round One of 2015, in case no one else has said it yet: "Ok, fight!"