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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.

Top horsepower-per-dollar cars in 2017

Bang for the buck. That quasi-scientific statistic is bandied about by motor heads everywhere from classrooms to barrooms, though the truth of the matter is that it's exceedingly complex to measure. A fair performance-per-dollar index would include something like cross-referencing MSRP (Manufacturers Suggested Retail Price) with point-to-point times on a track or driving route, which is obviously hard to do comprehensively. But, for the sheer joy of talking about cars and playing with a big spreadsheet, there's always the horsepower-per-dollar index, which is more straightforward, albeit hilariously flawed. There are vagaries even with this simple formula, of course: MSRP for vehicles can change at a moment's notice, to say nothing of the bottom-line shifting that happens with local deals or showroom negotiation. For this list we're running with the straight MSRP wherever possible, and as recently reported as we can get it. All the vehicles on this list are 2017 models, and all trims are reported where the lowest price and differing power levels intersect. Some choices were made for personal preference and some for sanity, avoiding things like all 48 trim levels of the Ford Transit, all with the same horsepower). If this list were a simple top ten, or even a top fifty, you'd be bored to tears with all the red, white and blue that is represented. Following perfectly with conventional wisdom, American cars really do lead the world where hp/$ is concerned. So, for the sake of variety (and the sheer joy of seeing a minivan 'win' one round of this thing) I've sorted out some top five and bottom five lists for broad power categories. Let's dive in. Less Than 100 Horsepower Okay, okay, this is hardly a category we'll grant you. But we've often tried to click off all the sub-100-hp cars on sale in the US, and making this list gave us an excuse. It also illustrates that none of these smallish vehicles bring cheap horsepower to the table - for that you'll need a motorcycle. The segment-leading Chevy Spark (above) asks just over $139 for each hp, and that Smart Fortwo Electric Drive has hp on sale for about the same price as its very distant family cousin, the Mercedes-Benz SL65 AMG (insert your favorite Smart joke here... we know you want to).

Cadillac issues stop sale on ATS to recall 82k units

Cadillac is issuing a recall on 82,620 examples of the 2013-2016 ATS worldwide to fix a compliance issue with the sunroof controls. Until a service bulletin goes out to take care of things, there's also a stop sale on the luxury compact in the United States, The Detroit News reports. Of the affected models, 63,665 are in the US, according to a statement sent to Autoblog, and 7,922 of them are in Canada. The problem is actually the same issue as a recall on nearly 59,000 examples of the 2013-2015 ATS in the US in February. In them, the controls for the tilt and slide of the roof aren't recessed enough to meet government standards for the force necessary to operate the buttons. The Feds believe that someone could accidentally activate the auto-close and potentially be at risk. At the time, Cadillac dealers installed a new trim plate to add the needed clearance. In the latest update, the company is adding the 2016 model year, and according to The Detroit News, 70 percent of the cars from the original campaign also need another new trim plate. Unsurprisingly for such a minor defect, there are no known crashes, injuries, fatalities, or customer complaints related to this issue, according to the announcement by General Motors. Cadillac ATS Statement: General Motors is recalling 63,665 Cadillac ATS sedans in the United States from the 2013-2016 model years because the power-operated roof panel systems on these vehicles will auto-close when the non-recessed portion of the "Slide" or "Tilt" switches are pressed and the roof panel is open. Because these switches are not fully recessed, they can be actuated with less force than required to comply with applicable federal standards. GM knows of no crashes, injuries or fatalities related to this issue and has received no customer complaints. The total population of the recall including Canada, Mexico and exports is 82,620. Transport Canada Recall # 2015322 Recall Date 2015/07/21 Notification Type Compliance Mfr System Electrical Manufacturer Recall Number 15568 Units Affected The number of vehicles or components affected by the recall. 7,922 Category Car Recall Details Certain vehicles equipped with power-operated sunroof system may fail to conform to Canada Motor Vehicle Safety Standard (CMVSS) 118 - Power-Operated Window, Partition and Roof Panel Systems.