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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.

2016 Cadillac CT6 to get an aluminum body?

Well this is interesting: A hot-off-the-press report in Automobile claims the coming Cadillac CT6 will have an aluminum body. Most write-ups on the CT6 claim it will have a body that's a combination of aluminum and high-strength steel - Automobile itself wrote of "high-strength steel, aluminum, and steel stampings" in October. An all-aluminum body would be quite the reversal, contradicting the last four months of reportage and company statements on the matter. Mark Reuss, EVP of global development at General Motors, told The Detroit News in October, "We will create with the CT6, the world's most advanced body structure... [and] it's not aluminum. It's a stronger, smarter, safer premium luxury vehicle." It echoed the earlier Automobile story in saying the CT6 would use GM's "patented welding technology with high-strength steel, aluminum and steel stampings and castings." That same month, the Wall Street Journal ran a piece titled, "GM Won't Follow Aluminum Strategy in Future Cars," in which Reuss said, "making big statements around all carbon fiber, all aluminum, all magnesium, they're very interesting," and that GM wouldn't be doing it. That piece also circled back to a material mix and GM's special welding process, saying the CT6 "will have a body made of aluminum, high-strength steel and other materials, and will be 100 kilograms (220 pounds) lighter than a similar-sized car made of high-strength steel." We don't know what kind of body Cadillac's new assault on luxury is going to wear, but now we can't wait to find out. Featured Gallery Cadillac Elmiraj Sedan: Spy Shots View 22 Photos News Source: AutomobileImage Credit: Chris Doane Automotive Cadillac GM Luxury Sedan aluminum cadillac ct6

Watch the 2014 Cadillac CTS live-stream reveal

Despite many an image leaking onto the Internet over the weekend, today is the official day for the debut of the all-new 2014 Cadillac CTS. You want the nitty-gritty details of Cadillac's new sedan? Click here.
If you want to watch the 2014 CTS makes its live debut in front of a throng of auto journalists, then just watch below, as Cadillac is live-streaming the event at 7:15 PM EST. That's only a few minutes from now, so click here to start watching, and stay tuned for our first live images of the CTS from the New York Auto Show.