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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.

C7 Corvette won't spawn new Cadillac XLR [w/video]

Between the new 2014 Chevy Corvette Stingray and the even newer Cadillac Elmiraj Concept shown off at Pebble Beach, we were already expecting some sort of chatter of a Cadillac XLR redux. During an in-depth C7 Corvette discussion with Tadge Juechter, the car's chief engineer, Fox News asked if a Corvette-based, Bowling Green-built Cadillac will be built off the C7. Non-spoiler alert: the answer is no.
Juechter says that General Motors has "no intent" on transforming this car into a Cadillac product since the C7 has been optimized for the Corvette buyer, a consumer that's generally a different sort of person than a Cadillac intender who might also be cross-shopping a Mercedes-Benz SL-Class or BMW 6 Series.
While we're not ready to write off a future XLR altogether, we assume that the Corvette Cadillac experiment is most likely never going to happen again. The interview with Juechter is posted below, but the XLR discussion comes in at the 9:00 mark.

Cadillac ATS coupe and sedan get Midnight Editions

Horror stories and fairy tales make a mint by having the scariest things happen at midnight, but automakers make a mint by marketing midnight. Chevrolet busted out a Silverado Midnight Edition early this year, followed shortly thereafter by an Impala Midnight Edition. In between those two we got the Cadillac CTS Midnight Edition, and now comes an ATS following in the zero-dark-thirty tradition, according to GM Inside News. The ATS Midnight Edition will add $1,695 to the sedan price and $600 to the coupe. For that cash outlay you get black chrome on the grille, around the windows, and on the rear fascia, 18-inch "After Midnight" wheels, "sueded microfiber" trim on the steering wheel and shifter, plus the Cold Weather Package with a heated steering wheel and heated front seats. Just those few exterior changes make a big difference up front, increasing the appeal and aggression of the sports sedan without being ostentatious. You can't go dark with just any old ATS, though. The package is limited to rear- and all-wheel-drive versions of the Performance trim. And the color palette is reduced to four hues: Crystal White Tricoat, Red Obsession Tintcoat, Phantom Gray Metallic, and Black Raven. The three possible interior combos are Light Platinum with Jet Black accents, Morello Red with Jet Black accents, and Jet Black with Jet Black accents. Related Video: Featured Gallery 2015 Cadillac ATS Midnight Edition News Source: GM Inside News Design/Style Cadillac Coupe Luxury Special and Limited Editions Performance Sedan