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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.

GM extending warranties on Cadillac CTS-V and Chevy Camaro ZL1 for supercharger issue

Okay General Motors, we've sat by and watched you recall the compact cars, crossovers and pickup trucks, and aside from reporting on it, we've been fairly quiet. This, though, this will not do. We can almost tolerate the recalls on the bread-and-butter cars, but leave the performance vehicles alone.
According to a report from The Car Connection, GM has discovered a problem with the superchargers of the 6.2-liter V8s found in the Chevrolet Camaro ZL1 and the Cadillac CTS-V. Apparently, the issue rests around the internal bearing shaft grease, which can become contaminated (we aren't sure with what). If left unchecked, it'll first lead to a rattle at idle, which goes away under slight throttle. The real warning stage is when a high-pitched squeal develops, signaling that the bearing shaft has failed. Naturally, severe engine damage is the next step (although it's possible that the engine will also just refuse to turnover, although neither case is desirable).
According to TCC, GM will replace the superchargers on vehicles that have exhibited symptoms of bearing shaft failure free of charge. It will also, allegedly, be extending the warranty on all supercharged ZL1s and CTS-Vs to 10 years or 120,000 miles (whichever comes first), from the date of purchase. Officially, only 2009 to 2013 CTS-Vs and 2012 to 2013 ZL1s are suffering from this issue.

Cadillac confident attitude will attract the elite to ELR plug-in hybrid [w/video]

Cadillac is not going to pull any punches when it comes to promoting its plug-in hybrid ELR. In the real world, the company is showing off the Wreath And Crest's coupe with Chevy Volt technology at exclusive events with "groups whose members are affluent, green-minded and have an appreciation for design and innovation," says Automotive News. That evidently means young Hollywood celebrities and other well-to-do demographics. As Cadillac global chief Bob Ferguson recently told the industry publication, "If you live on the West Coast and you're an architect and you've given to environmental causes, you're probably going to hear about the ELR. We have sliced and diced who is likely to buy this vehicle." "We have sliced and diced who is likely to buy this vehicle" - Cadillac's Bob Ferguson In the realm of advertising, Cadillac evidently thinks a fast-talking, USA-USA-USA! Type-A personality is just the kind of guy who will convince those celebrities and architects to buy one. For proof, look no further than the star of this new ELR ad called Poolside that Cadillac is airing during the Olympics. There are almost no details about the ELR in this ad, just a whole lot of attitude mixed with humor (the "We got bored" line is funny). In fact, there's almost no indication that the ELR is an extended-range hybrid at all. Short of a brief moment where our hero, actor Neil McDonough, unplugs his car from its charging station, you'd probably never know it's got an EV mode at all. That's undoubtedly a calculated bet by Cadillac, whose ad execs have undoubtedly noted that most electric cars are not selling well with an eco-first message, so they appear to be going with style and swagger instead. Scroll below to see what we mean. The ELR has a starting MSRP of $75,000, and at that price, it's already out of reach for most Americans. Automotive News suggests that annual ELR production is likely to be just shy of 5,000 units, so Cadillac could be on stable ground trying to appeal to such a limited number of buyers. What type of buyers? Well, that remains to be seen. Related Gallery 2015 Cadillac ELR: First Drive View 25 Photos News Source: Cadillac, Automotive News - sub. req. via YouTubeImage Credit: Gallery images copyright 2014 Michael Harley / AOL Green Cadillac Electric Hybrid PHEV cadillac elr elr poolside