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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.

Tesla leads and Infiniti bleeds in Consumer Reports' satisfaction survey

According to Consumer Reports, Tesla owners are more likely to rave about their vehicles than any other brand. And we're not surprised — Tesla has performed very well in past customer satisfaction surveys, despite the fact that the electric cars themselves tend to have more problems than most other automobiles. Second place went to Lincoln, which interestingly had a higher cumulative score than Tesla in individual category measurements like comfort and storage space. Ram, a truck-only brand, rounded out the top three. The consumer-focused magazine bases its owner satisfaction score on responses to a very simple question: Would you buy this exact car again? The higher percentage of owners who answer "definitely yes" to that question, the higher the satisfaction score. Further breakdowns are scored for other parts of the ownership experience, which is why brands that rank poorly in Consumer Reports' own reliability charts — like Tesla and Lincoln, for example — can still earn top marks for satisfaction. The lowest-ranked brands for satisfaction are Cadillac, Nissan and Infiniti. Interestingly, Cadillac performed better than average in Driving and Comfort and middle-of-the-road in the In-Car Electronics and Cabin Storage, but like most other brands, scored poorly in Value. In fact, only Subaru, Mazda and Volkswagen scored better than average in Value. Nissan and especially Infiniti earned comparatively low marks across the board to go along with the bottom-of-the-barrel satisfaction score. Here's the full list of automakers from Consumer Reports' satisfaction survey, ranked in order from best to worst: Tesla Lincoln Ram Chrysler Subaru Hyundai Porsche Dodge Mazda Toyota Kia Mini BMW Ford Audi Honda Volvo Volkswagen Lexus Jeep GMC Chevrolet Mercedes-Benz Buick Cadillac Nissan Infiniti It's worth diving into the individual category scores in addition to the official finishing order for a full look at the results. For instance, despite the fact that automakers like Lincoln and Ford use similar infotainment systems, their In-Car Electronics scores don't quite match up. Also, some automakers have full lineups with multiple cars, trucks and SUVs while others offer just a couple of nameplates. Head on over to Consumer Reports for all the details. Looking for a reliable car, truck or SUV? Check out the top 10 vehicles that owners keep the longest.

Lincoln reignites the Navigator with bold concept

The Lincoln Navigator's demise has been greatly exaggerated, and nearly 20 years after it first revolutionized the luxury segment, a new generation of the iconic sport-utility vehicle will again point the way forward for the brand. Previewed by a concept at the New York Auto Show, the new Navigator will hit showrooms next year joining the much-anticipated Continental sedan as Lincoln's twin flagships. The concept is "a very strong" hint of what the production Navigator will look like, Lincoln president Kumar Galhotra said. He's referring to the general appearance of the tall concept, which is confident, creased, and a bit reminiscent of a Range Rover. There are huge wheels, lots of chrome, and "Navigator" spelled out in blocked capital letters over the fender vents. It runs a 3.5-liter EcoBoost V6 making 400 horsepower and will ride on a new chassis, though Galhotra wouldn't offer more details. Oh, and it has gullwing doors. The crowd audibly oohed and aahed when that feature was demonstrated at a preview event in New York, but those are purely for show. They won't be on the production model, Galhotra said, and they're meant to demonstrate the spacious cabin. "The nature of the vehicle is very important ... and it's a great way to showcase that interior," he said. The inside of the concept is an interesting place. It has a rear cargo area that doubles as a closet, complete with shelves that make up a wardrobe management system, and there's a rail running down the middle of the passenger area. A multi-level running board cascades forward when the gullwing doors open, and the six seats are adjustable 30 ways. There are also wifi-equipped touchscreen monitors mounted in the seat backs. Inside and out, the Navigator carries a nautical vibe. It's covered in a soft shade of blue paint, while the interior has blue leather and teak accents. The Navigator concept features some of Ford's semi-autonomous technology, including pre-collision assist with pedestrian detection. The radar-and-camera-based system will look for obstacles in the vehicle's path, warn the driver, and then brake if needed. It also has a 360-degree camera and lane-keeping assist. Look for all of this on the production model. Launched in 1997, the Navigator is one of the original all-American large luxury SUVs – the Cadillac Escalade didn't arrive until 1999.