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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.

Mercedes-Maybach SUV concept: Vision Ultimate Luxury interior teased

Mercedes-Maybach posted a teaser video of what it calls "the ultimate in luxury" last week, saying that the featured, yet-to-be-named vehicle would be presented in the Beijing Motor Show. Now there's a teaser sketch giving us a wider look of the concept's interior, as well as a name. The concept also has a name by now: the Vision Mercedes-Maybach Ultimate Luxury. We guess that might have been coming, even if the name isn't exactly concise. But, the accompanying release also informs us that the concept is a combination of a high-end sedan and an SUV, confirming that it is indeed the high-riding vehicle that's been rumored for a while. The interior sketch also shows a very wide center console with stylized grab handles, which suit the SUV dimensions and aesthetic, without being as trucklike as the Maybach G650 Landaulet's interior. As well as the lavish two-tone color scheme and the touch of wood on the door panel, the concept interior shows a wide color instrument display ahead of the driver. The gear selectors are paddle shifters next to the chunky steering wheel rim, and the controls seem to have been grouped on the wheel's spokes, leaving just a few switches on the dashboard. Autocar reports that the concept will be followed by a 2019 production version, slated to debut at the Los Angeles show at the end of this year. It would be based on the Mercedes-Benz GLS, but with a more bespoke design inside out, as hinted by the concept. Basing it on the GLS would mean Mercedes would be manufacturing it at the Tuscaloosa plant in Alabama, making it the first Maybach built in the U.S. Related Video: Image Credit: Mercedes-Maybach Beijing Motor Show Maybach Mercedes-Benz SUV Concept Cars Luxury mercedes-maybach

Chris Harris and David Coulthard wring out a Mercedes Fintail at the N"urburgring

If there's one thing we've learned from the latest video from Drive, it's that the combination of Chris Harris and David Coulthard will produce some very quotable moments. Take this exchange, for example.
DC: "We are by some way the slowest."
CH: "But we're in a class of three cars, apparently."