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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.

Ford recalls 1.3 million Fusions, MKZs: Steering wheels could come off

When driving a car, the steering wheel is only expected to move in a rotational fashion, either clockwise or counter-clockwise. When it moves in some other direction, something is wrong, and when it moves the wrong way enough that it is no longer attached to the steering column, that's a really, really bad thing. And apparently, according to a recall issued by Ford, there are over 1.3 million Ford Fusions and Lincoln MKZs that are at risk of this happening. And at least two accidents and one injury have been attributed to the issue. Ford says the problem is that the steering wheel bolt that keeps the wheel attached to the column might not provide enough torque, resulting in the bolt slowly loosening and working its way off the column. The good news is that the fix is really simple. Ford will install a larger bolt with more threads along with a larger nylon patch to keep it all locked down. The fix is completely free to owners. Cars affected by the recall include 2014 to 2017 Fusions built built at the Flat Rock plant in Michigan between August 6, 2013, and February 29, 2016. Model year 2014-2018 Fusions and MKZs built at the Hermosillo factory in Mexico are also affected. So if you have one of those sedans, please get in touch with your local dealer to have the issue addressed. Related Video:

Lincoln Continental suicide doors: A lot has changed since 1961

It looks like we've hit peak Lincoln Continental for the 21st century with the Coach Door Edition. At least, 80 people will be enjoying the best that Lincoln (and Cabot Coach Builders) can offer. We figured now was a perfect time to look back at the original Continental with suicide doors, now that there's a return to form. Make sure to scroll through the barrage of historical Continental photos Lincoln provided to us from its archive above. Lincoln was aiming to offer a design throwback to the 1961 Continental with its return to suicide doors. Back then, Lincoln wanted a car to compete with GM's " Standard of the World," ergo Cadillac. The goal was to make a car so enticing that people might want to buy a Lincoln instead of a Cadillac as their next luxury-mobile. It never stomped down Cadillac, but the Continental made a strong statement. Sales spiked at 54,755 Continentals in 1966 – Cadillac sold 196,685 cars that same year. For nine years (1961-1969), Lincoln made the Continental with suicide doors as the only option (barring the two-door coupe introduced in 1966). The car was offered as a four-door convertible or hardtop for most of the suicide-door generation, but the convertible was dropped after 1967. It was the droptop that was most iconic, and the car many of us picture today when thinking about that Continental. The pillar-less look of the Convertible with the top removed and the doors swung wide exudes class and luxury. This generation of Continental appeared in movies like "James Bond's Goldfinger", and more recently in "The Matrix." Celebrities owned them back in the day. Who doesn't want to exit their large convertible through suicide doors onto the red carpet, right? 2019 Lincoln Continental Coach Door Edition View 51 Photos Obviously, Lincoln wanted the normal Continental released for model year 2017 to take the world by storm. As rumors swirl of its untimely death after 2020, it's safe to say the new Continental hasn't exactly done that. What if it had suicide doors to begin with? Would we have been looking at the next Mercedes beater? Probably not. But still, we would have been blown away if that's what Lincoln showed us at the 2016 Detroit Auto Show. Maybe those in the market would have been too. The new Continental with suicide doors serves an entirely different purpose than the original. Producing only 80 of them makes sure of that. Maybe a few celebrities will buy one, but this one won't have the same cultural impact of the old.