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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.

Cadillac boss: We will have diesels

Johan de Nysschen doesn't usually mince words about his plans, and the Cadillac boss says that diesel-fueled models are on the horizon for the luxury brand in the US by the early 2020s. The four- and six-cylinder engines under development would launch first in Europe about 2019. "We will definitely bring them to the US," de Nysschen said during a press event, according to Automotive News. Unfortunately, the Cadillac president isn't saying which models would get the diesels, yet. This plan has been in the works for at least several months, and Cadillac made mention of the two oil-burners earlier this year during the unveiling of its new V6 engine. De Nysschen broached the possibility during an interview at the 2015 Detroit Auto Show, and he also referred to the inclusion of hybrids and plug-ins into the company's lineup at that time. Last year, a rumor suggested the addition of a V6 turbodiesel into the Escalade range. There were also rumblings of an oil-burning ATS during that model's launch. While Cadillac is no stranger to offering diesels in Europe, the decision to develop these new ones could come at an inopportune time. Governments there are rapidly moving against the fuel in favor of electrification. Tighter emissions regulations could also be on the way for the EU. Related Video:

Cadillac ATS and CTS get blacked-out treatments

Some still think of gallons of chrome when Cadillac comes to mind, and some of the automaker's models still take the blinged-out approach (we're looking at you, Escalade). But for those whose impression of the America luxury marque's is about more than brightwork, Caddy has announced a new Black Chrome package. Available for the ATS coupe, ATS sedan, and CTS sedan, the optional package, as you might have guessed, applies dark chrome to the outside of the vehicle. On the ATS, that includes the front grilles (upper and lower) and rear trim, as well as body-colored door handles, gloss black window moldings, and dark-finish 18-inch alloys. Buyers can choose to apply the package to the Luxury or Premium trim, with the 2.0-liter turbo or 3.6-liter V6, in rear- or all-wheel drive, with four exterior paint choices, any interior available, and in two- or four-door bodystyles. The package goes for $795 on the sedan and $595 for the coupe. The package costs a little more for the CTS but includes a bit less trim, limited to the grille and those same 18-inch alloys. It can still be paired to the 2.0 turbo or 3.6-liter V6 in rear- or all-wheel drive, with three exterior tints and a limited selection of interior treatments. Pricing here starts at $1,295 with the Luxury trim, or $1,095 in either Performance or Premium spec. Those looking for a shinier treatment, however, need not apply. Related Video: Cadillac Introduces Black Chrome Package for ATS and CTS ENHANCES ENGAGING PERFORMANCE, STRIKING DESIGN 2016-03-14 Cadillac today introduced the Black Chrome Package for Cadillac ATS Sedan and Coupe and Cadillac CTS Sedan. The package further enhances the engaging performance and the striking design of the ATS, a Consumer Guide Best Buy for three years in a row, and the CTS, named one of Car and Driver's 10Best for three years in a row. The Black Chrome Package is available now to order at local Cadillac dealerships or through the Build Your Own tool on the Cadillac.com website. For additional information, customers can call Cadillac Customer Experience at 1-800-458-8006.