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Lincoln to get high-end Harman Revel audio in 2015

"They've never been in autos before, and this is going to be an absolute point of differentiation for us." – Matt VanDyke Lincoln executive Matt VanDyke admits he was "moderately interested" when he heard his brand was considering a partnership with a high-end speaker company. Then he listened to the silky sound they made. "I sat there and I was blown away," he said. That may be overselling the speakers, but they do sound good – we know, we've checked 'em out. Lincoln is betting subtle enhancements – like Harman's Revel audio systems – will help the historic automotive brand appeal to a new generation of buyers. The companies announced a 10-year deal on Wednesday to place Revel speakers in Lincoln cars and trucks beginning in 2015 models. Terms were not disclosed. Though Revel is a new name, Harman has long offered a wide array of car under other brands, including Harman Kardon, Infinity and Lexicon. The partnership launches with the next-generation MKX crossover (concept version shown above), which arrives in showrooms in 2015, and the speakers will be available on other Lincoln models, too. Revel is Harman's top-of-the-line brand that's marketed to audiophiles, and its home systems can easily cost several thousand dollars or more. In Lincolns, passengers will be able to tune their Revel system to three settings: normal stereo sound; "audience," which creates concert-like acoustics; and "on-stage," which is designed to make passengers feel like they're standing among the band. Revel and Lincoln designers also collaborated on the style of the speaker grilles to integrate them into the vehicles, and the uplevel Revel system, called Ultima, will use aluminum covers. "They've never been in autos before, and this is going to be an absolute point of differentiation for us," said VanDyke, Lincoln's global director. Though Revel is a new name to the auto sector, Harman has long offered a wide array of in-car audio and infotainment systems under other brands, including Harman Kardon, Infinity and Lexicon. The Revel partnership is part of Lincoln's efforts to elevate its image and make the brand more relevant to new and younger customers. Lincoln's Black Label line, a customization and service program, will launch at 32 dealerships in six states this year, before expanding nationwide in late 2015. Additionally, Lincoln signed Oscar-winner Matthew McConaughey to star in its advertisements.

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.

Genesis cars win accolades, offer value — so why are sales so bad?

My high-school buddy Brent Cormier was so smitten with the Genesis G80 when he saw it at an event I hosted at SXSW in 2016 he bought a used 2013 Hyundai Genesis a short time later and fell in love with the car. "It surpasses my every expectation," said Cormier, a self-described "renaissance man" who owns and runs a real estate agency with his wife Laura, is a food service executive chef and part owner of Austin-based Thin the Herd Guitars. "I was locked into Mercedes and Audi for 10 years," he added. "And felt trapped in an endless pit of maintenance costs." After owning the Genesis over the past two years — including using it as an Uber and Lyft driver to earn extra cash — Cormier learned what some frugal luxury sedan buyers and a handful of car reviewers have discovered: Genesis offers great bang for the buck compared to other premium brands and can compete with the best in terms of performance, features and comfort. Hyundai's luxury brand also earned a prominent third-party endorsement last week when for the first time Genesis topped J.D. Power's 2018 APEAL study, surpassing German luxury-performance icon Porsche. The APEAL study (which stands for Automotive Performance, Execution and Layout) "measures owners' emotional attachment and level of excitement across 77 attributes," ranging from performance to comfort, and asks nearly 68,000 owners of new 2018 models to score vehicles on a 1,000-point scale. In its second year ranked as a stand-alone brand, Genesis earned an APEAL score that bumped it up 15 points to 884 and helped push it past Porsche — and past BMW, Lincoln, Mercedes-Benz, Audi, Volvo, Cadillac, Land Rover and Lexus, in order of ranking. Last month, Genesis also topped J.D. Power's Initial Quality Survey (IQS) for the first time this year. And both its models were awarded Top Safety Pick Plus ratings by the Insurance Institute for Highway Safety, among 11 Plus ratings in all for Korean vehicles. Despite high J.D. Power rankings and great reviews, Genesis U.S. sales were off 50 percent for the first six months of 2018 compared to 2017, and in June Genesis sold only 796 vehicles — the first time U.S. numbers dropped below 1,000 in a month. Part of Genesis's APEAL and IQS success can be attributed to its small product lineup: just two models, the G80 and G90 sedans, with a third, the 2019 G70, launching later this year. And while those numbers may help in J.D.