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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.

The Zephyr could help Lincoln, seriously

The Zephyr could help Lincoln. The concept car revealed this week at the Shanghai Motor Show is gorgeous and a conversation starter. People noticed Lincoln.  The brand is quick to say the car, officially called the Zephyr Reflection Preview, is only intended for sale in China and what we’re seeing is a concept. In other words, donÂ’t get excited and donÂ’t read too much into the reveal. Why not?  Mercedes, Audi and BMW still do pretty well with sedans. So do Lexus and Cadillac. IÂ’m not saying Lincoln should line up three wide against the C-Class, E-Class and S-Class and try to go head-to-head. Just make one car, maybe complemented by a crossover variant, like the Volvo S60 and V60 Cross Country relationship. Tiptoe into the segment. Price it right, make it electric and see what happens. IÂ’ve argued Chrysler only needs a few models to become relevant again. Lincoln already has more than a few solid models. Lincoln is relevant. The Navigator is the superstar, and the brand has a respectable lineup with attractive design, solid powertrains and clever chassis setups (like the AviatorÂ’s independent rear suspension). Lincolns arenÂ’t more expensive Fords with flashier grilles anymore. Ironically, thatÂ’s exactly what the last Zephyr was — a gussied-up 2006 Ford Fusion — that lasted for one year before being renamed the MKZ. Ford Motor Co., including Lincoln, famously pivoted away from cars. That was a mistake. The Ford brand can compensate with Bronco Sports and Maverick pickups and maybe a crossover-wagon thing that sort of replaces the Fusion. Lincoln could use something beyond crossovers and SUVs. At this point, youÂ’re probably saying, “Uh, Continental, hello — Lincoln tried this." In fact, Lincoln has actually sold 768 Continentals this year as it sells off remaining inventory of the now-discontinued sedan. IÂ’d argue the ContinentalÂ’s demise wasnÂ’t due to its merits. ItÂ’s a pretty good car. It just had the misfortune of launching in 2016 as the market for sedans continued to shrink. The Continental was never going to be a volume play, but the measly sales figures it did achieve didnÂ’t justify its existence, even for a halo car. The Cadillac CT6, the ContinentalÂ’s domestic rival, met the same fate for the same reasons. Why would a new sedan fare any better? Lincoln didnÂ’t reveal the powertrain of the prototype, but an electric Zephyr sedan could bring in a whole new customer to the brand.

Lincoln Corsair reportedly getting a PHEV among three engine options

What's a Lincoln Corsair, again? That would be the forthcoming replacement for the current Lincoln MKC compact crossover, and we know little about it besides its name change and the fact it'll be related to the also-redesigned Ford Escape. However, The Truth About Cars says it saw paperwork Ford filed with the National Highway Traffic Safety Administration detailing Corsair powertrain options. These VIN decoder documents reportedly indicate three available engines, including, most notably, a plug-in hybrid. TTAC, which didn't post the documents, indicates the hybrid's heart will be a 2.5-liter Duratec four-cylinder – such an engine currently power base models of the Ford Escape and Fusion. All-electric driving range is unknown, but the Fusion Energi can go 25 miles, and crossover competitors do anywhere from 22 to 26 miles on EV power. What we do know is that all PHEV Corsairs will come with AWD. This would be the first time we've seen mention of a Lincoln Corsair plug-in hybrid, but the idea isn't far fetched. The new Lincoln Aviator will offer a plug-in hybrid version, and we know there's a traditional hybrid version of the related Ford Escape crossover on the way. Spy shots of that vehicle from earlier this month didn't show the plug-in port where Ford likes to put it, on the left front fender. We expect a different powertrain in that model and we also wouldn't be surprised if there's an Escape PHEV as well. The other two powertrains will reportedly be the MKC's 2.0-liter Ecoboost four-cylinder as the base, with the 2.3-liter EcoBoost continuing to be an optional upgrade. TTAC also says the VIN document indicates that trim configurations have changed to simply offering standard and Signature trims (from the MKC's standard, Select, Reserve, and Black Label levels). This is hard to believe given that every other Lincoln offers a Black Label and is usually the model featured in promotions and official photography. There's still a lot to be learned about the Lincoln Corsair, including whether these VIN documents are accurate. We expect to know more later in the year. Given that the Lincoln Aviator was shown before its Ford Explorer sibling, we wouldn't be surprised if the Corsair made its official introduction first. Related Video: