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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.

Ed Welburn retires, Tesla offered nuclear plant in France, and more | Autoblog Minute

Greg Migliore recaps the week in automotive news, including a look at GM design chief Ed Welburn's retirement, the French wooing of Tesla, and more. GM Lincoln Tesla Autoblog Minute Videos Original Video lincoln motor company

Production 2017 Lincoln Continental arrives with 400-hp V6

Lincoln still isn't saying much about its new flagship, the long-awaited Continental. Instead, it's got to get everyone's attention. The brand that's been threatening to get a genuine luxury game going for years probably wants people to sit inside the fullsize sedan to learn what it's got, and we think that's a great idea. One good bit we know is that the new Continental is powered by a 3.0-liter, twin-turbo V6 with "a projected" 400 horsepower and 400 pound-feet of torque. We also know the marketing folks have the luxury-speak down, with lavish promises of heated, cooled, and massaging Perfect Position 30-way seats that adjust to shape and weight, as well as climate-controlled seats for rear passengers that also recline, and "generous rear legroom." Themed interior appointments come in Chalet, Thoroughbred, and Rhapsody selections, perceived-quality boosted further by a specific number of stitches-per-inch on the leather, a laser-cut door on the instrument panel, and real wood and aluminum trim. Acoustic laminated glass, active noise control, and available Revel audio are meant to insure serenity. Technology points are scored with optional adaptive steering and all-wheel drive, three drive modes, dynamic torque vectoring, surround-view cameras, adaptive cruise control, and pre-collision braking. We will really begin to know the new Continental when we sit in it later today at the Detroit Auto Show, for now there's the press release below. All-New Lincoln Continental Delivers Quiet Luxury: Elegant, Effortlessly Powerful, Serene - Lincoln Motor Company introduces its elegant new flagship – the all-new Continental – coming this fall - Effortless power comes from new 3.0-liter twin-turbocharged V6 engine that produces a projected 400 horsepower and 400 lb.-ft. of torque1; advanced safety technology is also featured - Serene interior offers the comfort of Lincoln's innovative Perfect Position Seat, spaciousness, rear seat amenities, Revel® audio system and top-grade materials DETROIT, Jan. 12, 2016 – Lincoln Motor Company heralds the return of its flagship – the all-new Lincoln Continental – an elegant, effortlessly powerful, serene full-size sedan that delivers quiet luxury to the industry's most discerning customers. Beginning this fall, Continental offers first-class travel for clients in America and China, bringing warm, human touches and a contemporary design.