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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.

Infiniti Q50 Red Sport 400 priced at $48,855, AWD at $50,855

Infiniti's most powerful production model, the new Q50 Red Sport 400, now has a starting price. You'll need at least $48,855 for the rear-drive model or $50,855 for all-wheel drive. (Both figures include the $905 destination charge.) A fully loaded, rear-drive Q50 RS400 with Direct Adaptive Steering, navigation, adaptive cruise control, a heated steering wheel, and Infiniti's entire alphabet soup of safety equipment, tops out at $57,045. (Again, add $2,000 for AWD). When it comes to rear-drive competition, the closest base price to the Q50 is the 320-hp BMW 340i. This German undercuts the Infiniti by two grand, $46,795 to $48,855. But the BMW outprices the Q50 as soon as you start selecting options. A 340i with similar equipment to a loaded Q50 Red Sport 400 costs just under $60,000. All-wheel-drive German competitors also lose out in the price war. Like with the rear-drive models, the BMW 340i xDrive undercuts the Q50 RS400 by around $2,000. Add the options, and the Infiniti becomes a better value. The other two big German rivals, the Audi S4 and Mercedes-Benz C450 AMG start at a higher price and only get more expensive. Technically the S4 starts cheaper than the Q50, but only with the standard manual transmission. Selecting the S-Tronic dual-clutch model kicks the price from $50,125 to $51,125, and going for the top-end Prestige trim will bump potential Audi owners up to $57,025. Throw on must-have S4 options, including adaptive cruise control, adaptive dampers, and a sport differential and you'll be shell out $64,425 for the Audi. The Mercedes-Benz C450 AMG is the priciest choice in this group, starting at $51,725, or roughly $900 more than a base Q50 RS400 with AWD. Options, again, are the downfall here. Building a C450 to match a loaded Infiniti will drive the Mercedes' price up to $64,315. While it occupies something of a weird space relative to these vehicles, it's also worth mentioning the Cadillac CTS VSport. It's the only car in this impromptu pricing comparo that can outgun the Q50, with its 3.6-liter, twin-turbo V6 good for 420 hp and 430 lb-ft of torque. It also starts at $60,950, although that includes plenty of standard equipment. All this means that the Q50 Red Sport 400 represents a relative value. It packs more power than the Germans – 80 more than the 340i, 67 more than the S4, and 38 more than the C450 – and a more comprehensive list of options, too.

Mercedes-Maybach spied inside and out sporting the huge S-Class screen

A new Mercedes-Benz S-Class is well on its way, and that means a new Mercedes-Maybach is following right behind it. We were introduced to the new Mercedes-Maybach strategy over five years ago. At the end of 2019, Mercedes added to the small collection with the GLS 600, bringing an SUV into the Maybach fold. These spy shots mark our first good look inside and outside the next-gen Mercedes-Maybach sedan. We’ll point out the massive screen first. Photos of this huge slab of screen have largely shown it turned off. Now, we get a solid look at the display all lit up and running MercedesÂ’ next iteration of MBUX. The icons and UX look a whole lot like MercedesÂ’ current infotainment system design, just blown up to a much larger size. Mercedes is surely going to hit us with some new out-there features we didnÂ’t know we wanted and may not even use, but thatÂ’s the way it goes with excessive luxury. The gauge cluster is pretty standard for new Mercedes with a flat digital screen. An “EQ” emblem displayed in the cluster also indicates that Mercedes plans to implement its EQ Boost mild-hybrid tech with the turbocharged engine(s) offered in this new generation. The current car comes in S560 (V8) and S600 (V12) variations. We don't know what MercedesÂ’ powertrain plans are for the time being, but the GLS 600 uses 48-volt technology with its 4.0-liter twin-turbo V8 and makes 550 horsepower and 538 pound-feet of torque. Ideally, the smooth and silky V12 sticks around in the top-shelf S-Class as well. As for the design, itÂ’s exactly what one might expect from a Mercedes-Maybach. The wheelbase is stretched compared to the regular S-Class weÂ’ve spied before, and it has the signature slatted grille. Pop-out door handles appear to be carried over from the new S-Class, too. We expect the new S-Class isnÂ’t far from a reveal. ThereÂ’s a chance it still breaks cover this year, even as most automakers face delays from the coronavirus. Once itÂ’s out, the Mercedes-Maybach is likely to follow soon after. Related video: