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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 shows dealers convertible rendering

Cadillac is getting serious about revitalizing and expanding its lineup, and to that end, a new report claims that brand boss Johan de Nysschen has been showing plans for several new models to the marque's dealer body - among them, a new convertible.
The droptop which Cadillac reportedly showed its dealers in sketch form, would be based on the same platform as the ATS and CTS, those it's unclear to which (if either) of those model lines the new convertible would be added, or whether the design features a canvas or folding hardtop roof. One way or another, it would be the first time Cadillac would offer a convertible since the Corvette-based XLR roadster was discontinued more than five years ago.
Quoting an unnamed brand spokesperson, Cadillac would "like to introduce an open car to the portfolio at some point," however, "it's not likely to be one of the near-term portfolio additions."

Looking back on our favorite cars of Mad Men

The second half of the seventh and final season of Mad Men debuted this week, set to cap a run of public and critical acclaim. A decade's worth of interesting cars also made for good television, if you were paying attention. Vehicles didn't often steal the spotlight from Don, Betty, Roger, Joan and the gang, but they added meaningfully to the tone and beauty of the series. We sorted through the wheeled extras from Mad Men's archives, and choose some of our favorites to highlight. The list consists of cars that had at least a small impact on the plot of an episode, though certainly there are worthy gems hiding in just about every street and driving scene. Check out our subjective top five, and then let us know which of the Mad Men cars would be on your list. 1962 Cadillac Coupe DeVille – Season 2 Don Draper's Cadillac Coupe DeVille, all 500 feet of it, shows up in a few seasons of the show, but it's the first appearance that sets the tone. A Cadillac salesman, cut from the same cloth as Draper, asks what Don drives right now. "A Dodge," Don admits. "Those are wonderful if you want to get somewhere," allows the salesman, "this is for when you've already arrived." For a man on the move up corporate and social ladders that's a powerful message, and a pitch-perfect car. 1961 Lincoln Continental – Season 3 The most stylish Lincoln Continental ever is perfect set dressing for the mod show, of course. Though it's interesting that the car isn't cast as dapper Draper's ride, but rather his father-in-law's. Grandpa Gene does what all great grandfathers are bound to: lets his granddaughter Sally drive the big Lincoln while he works the pedals. Generational bond secured, in fine fashion. When you go back through the first three seasons of the show, you'll notice that Continentals show up more than once, too. There's nothing quite like them to evoke the best of the early '60s. 1963 John Deere 110 – Season 3 The only non-standard passenger vehicle on the list, no self-respecting gearhead/Mad Men fan should quibble with the inclusion of the John Deere 110 riding mower. For starters, the Deere is lovely to look at; a miniature version of the American Heartland icon in its green and yellow duds. The 110 appears as if milled from a solid block of steel, just the opposite of today's sleek, plasticky lawn minders (we're scouring Craigslist for one to bring home). The John Deere also has dear ramifications to the plot, too.