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Dealers mobilize to protect their margins from automaker subscription services
Fri, Aug 24 2018Six 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-Benz cut fleetwide emissions by 4.3 percent last year
Fri, Apr 11 2014Mercedes-Benz says it reduced its fleetwide vehicle emissions by 4.3 percent last year. Of course, the German automaker has another 29 percent to go to meet the European Commission's 2020 mandate. But who's counting? Mercedes' luxury and sports car bent has made it a relative laggard when it comes to increasing fleetwide fuel-efficiency, but the company did reduce emissions from 140 grams of CO2 per kilometer to 134 last year. The company's fleetwide fuel efficiency (calculated using the lenient European standard) was 5.4 liters per 100 kilometers, which equals about 44 miles per gallon and represents a 25-percent jump since 2007. Benz has come a long way from its gas-swilling V8 tanks of the 1970s. In fact, the company said its top performer, in the fuel-efficiency sense, was the diesel-powered B180 CDI BlueEfficiency Edition, which consumes 3.8 liters per 100 kilometers. That equals about 62 mpg (again, on the lenient scale). The company got some additional good press by revealing that Winfried Kretschmann, Minister-President of the German State of Baden-Wurttemberg, drives a Mercedes-Benz S300 BlueTEC Hybrid. Not exactly a Nissan Leaf, mind you, but it's a start, as is the company's efforts to bring its fleetwide emissions ever closer to the 95g CO2/km level that the EC is mandating by 2020. Take a look at Mercedes-Benz's press release below. Minister-President of the German State of Baden-Wurttemberg, Winfried Kretschmann (left), with Prof. Dr. Thomas Weber (right) and a Mercedes-Benz S-Class S 300 BlueTEC HYBRID Fleet fuel consumption for Mercedes-Benz Cars falls to 134 g CO2/km: Top efficiency figures in all vehicle classes Stuttgart, Apr 08, 2014 Benefit for the environment and customers: In almost all vehicle classes, Mercedes-Benz offers the most efficient vehicle in the competitive lineup. Moreover, in 2013 the company was able to reduce the fuel consumption and CO2 emissions[1] of the Mercedes-Benz Cars EU new vehicle fleet by a further six grams, to 134 g CO2/km. This means that in 2013, the average fleet consumption was 5.4 litres/100 km – a reduction by 24.7 percent since 2007. At present the company offers more than 50 models emitting less than 120 g CO2/km and 71 models emitting less than 130 g CO2/km. Customers can find vehicles in the Mercedes-Benz model range that consume considerably less fuel than competing models. "With our model initiative we want to be the leading premium manufacturer by 2020 again, says Prof.
BMW negotiates Daimler alliance, buys out car-service partner Sixt
Mon, Jan 29 2018Sixt sells its stake in DriveNow car-sharing to BMW BMW in talks with Daimler to combine car-sharing Combining car-sharing business to aid robotaxi plans FRANKFURT — Germany's BMW has bought out partner Sixt from their joint venture DriveNow, paving the way for a broader car-sharing and driverless taxi alliance with Daimler to compete against Uber and Lyft. Car rental company Sixt said on Monday it would generate an extraordinary pre-tax profit of about 200 million euros ($248 million) in 2018 from the sale of the DriveNow stake to BMW for 209 million euros. "With DriveNow as a wholly-owned subsidiary, we have all options for continued strategic development of our services," said Peter Schwarzenbauer, BMW's board member for Digital Business Innovation. "Our experience with mobility services supports our development of future autonomous, electrified and connected fleets," he said, adding that BMW aims to have 100 million customers for "premium mobility services" by 2025. The Sixt deal comes as BMW moves closer to a deal to combine its car-sharing services with Daimler's Car2Go, a person familiar with the discussions told Reuters last week. The German carmakers want to build a joint business that includes car sharing, ride-hailing, electric vehicle charging, and digital parking services, a senior executive at one of the companies said on Monday. Mercedes-Benz parent Daimler and BMW declined comment on the status of potential talks on their car-sharing business. "This is speculation, we do not comment," BMW said. The senior executive, who declined to be named because the plan is not public, said: "This will create an ecosystem which can also be used for managing robotaxi (driverless taxi) fleets." BMW would contribute its ParkNow and ChargeNow businesses to the common company, the executive said, adding that there were still differences of opinion over the valuation of Car2Go. The market for ride-hailing services currently makes up around 33 percent of the global taxi market, and could grow eightfold to $285 billion by 2030, once autonomous robotaxis are in operation, Goldman Sachs said in a recent research note. BMW and Daimler are now working on developing autonomous cars, vehicles which could enable them to up-end the market for taxi and ride-hailing services.