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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.

50 new vehicles by 2025: Ford making big push in China

SHANGHAI — Ford will launch 50 new vehicles in China by 2025, including 15 electrified vehicles, the U.S. firm said at an event in Shanghai on Tuesday, as it looks to rev up sales growth in the market and shift towards cleaner electric cars. Ford's sales in China have been weak in recent months, and the company is scrambling to come up with electric and hybrid vehicles to comply with strict Chinese quotas over production and sales for so-called new energy vehicles, or NEVs. The U.S. automaker is undergoing a broad review of its China operations, part of a strategic re-think under new Chief Executive Officer Jim Hackett, which will likely see the company focus on electric commercial vans as well as electric cars. "Between now and 2025, we will launch 50 new vehicles in China, and of those 50 new vehicles, 15 of them will be all-new electrified vehicles," said Peter Fleet, Ford's head of Asia Pacific, pointing to big growth in the "utility" segment. Fleet also said Ford's China revenue would grow by 50 percent over the same period. China is pushing automakers toward electric and hybrid petrol-electric vehicles, setting tough quotas for NEVs that come into play in 2019, and has signaled a longer-term shift away from traditional internal combustion engine cars. The major shift in the world's largest auto market has jolted some automakers, sparking a spate of recent electric vehicle (EV) joint ventures in the market. Ford has announced an EV tie-up with China's Anhui Zotye Automobile Co Ltd. "We've never seen change like we do today," said Ford Executive Chairman Bill Ford. "Everything is being disrupted" by the development of autonomous vehicles, trends such as ride-sharing and electric vehicles, he added. "It's clearly the case that China will lead the world in EV development, and so we at Ford are investing enormous amounts of money both here in China and globally to bring electrification into fruition." Reporting by Adam JourdanRelated Video: Image Credit: Reuters Auto News Green Plants/Manufacturing Ford Lincoln Electric Hybrid Shanghai Jim Hackett

2020 Lincoln Corsair Review & Buying Guide | Old-school, value-priced luxury

The 2020 Lincoln Corsair is a compelling alternative to the compact luxury crossover establishment. It’s distinctively stylish inside and out, very spacious, and it clearly focuses on comfort rather than performance. Not only that, it has a base price that's thousands of dollars cheaper than its German rivals. It has a couple of drawbacks. Its quest for comfort does sacrifice some of its handling capability, and its overseas rivals still have nicer cabin materials. But there are enough positives that youÂ’ll still want to give the Corsair a closer look. What's new for 2020? The Lincoln Corsair is a completely new model introduced this year. It replaces the Lincoln MKC, and like that crossover, the Corsair still shares its platform with the Ford Escape. 2020 Lincoln Corsair Beyond Blue interior View 9 Photos What's the Corsair's interior and in-car technology like? While the Corsair is based on the Ford Escape, you wouldnÂ’t be able to tell from the inside, and thatÂ’s a very good thing. The little Lincoln crossover has a unique interior, both in relation to the Escape and to the rest of its luxury segment. There's nothing remotely like it. The dashboard itself is low and wide, emphasized by the split-level design and the faux full-width air vent. The center stack has a cantilevered design that floats above the center console area and features chrome-plated switches and knobs. Base models get a stylish pinstriped aluminum trim panel on the dash paired with one of three upholstery color options including black, gray and beige. However, the Reserve steps things up considerably with differing wood and metal trim choices that correspond to the expanded leather color options that include a camel tan and dark turquoise (pictured above). All Corsairs get an 8-inch touchscreen infotainment system mounted high on the dash within easy sight and reach. It uses a reskinned version of the latest Ford SYNC interface. The layout is straightforward and easy to navigate, and the more muted color options on the Lincoln system are easier on the eyes than the stark white Ford version. ItÂ’s a little bit slow to load new menus, though, and this carries over to the optional 12.3-inch instrument cluster screen available on the Reserve trim. The Corsair comes standard with an analog instrument cluster with a 6.5-inch info screen. We appreciate that many stereo and climate controls have dedicated switches and knobs on the center stack, and they have a nice heft to their actions.