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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.

Race recap: 2015 Abu Dhabi Grand Prix is Germany rising as sun sets

Mercedes-AMG Petronas driver Nico Rosberg Rosberg doesn't attribute anything mystical to the form that got him ahead of teammate Lewis Hamilton. He said simply, "Before it was close in the other direction, now it's close in this direction." Mercedes non-executive chairman Niki Lauda went further, saying Rosberg's "brain has switched." Under the desert spotlights it switched so far ahead that Lewis Hamilton qualified nearly four tenths behind the German. Kimi Raikkonen flew the scarlet for Ferrari in third position. Being three spots ahead of Valtteri Bottas gave Raikkonen a huge advantage in locking up fourth position in the driver's championship. Even if he doesn't care about it, as he's publicly stated, Ferrari probably does. Teammate Sebastian Vettel was classified 16th after the German slowed down after making a mistake on his final hot lap, and neither he nor his engineer realized how quickly times were falling on a cooling track. He'd be promoted to 15th when Lotus driver Romain Grosjean was penalized for a gearbox change. Sergio Perez knocked it out of the park for Sahara Force India, claiming fourth ahead of Daniel Ricciardo in fifth for Infiniti Red Bull Racing. Williams driver Bottas was in sixth, in front of the second Force India of Nico Hulkenberg and the second Williams of Felipe Massa in eighth. Daniil Kvyat ensured both Red Bulls were in the top 10 with his ninth position, and Carlos Sainz got the upper hand in qualifying over his Toro Rosso teammate Max Verstappen for the final time this year, rounding out the top 10. Beyond Nico Rosberg's mind, one of his weaknesses was his slow starts. Those are stronger, too, the German tearing off away from the field when the lights went out. Hamilton bogged enough to have to defend from Perez behind, the Mexican trying to slide between Hamilton and Raikkonen on the run to the first corner. Rosberg held the lead into Turn 1 and likewise held it through Turn 21 on the last lap of the race, only ceding it during pit stops. Rosberg's 14th victory gets him level with Graham Hill on the wins list – on the anniversary of Hill's death in a plane crash – and marks the first time in his 10-year F1 career that he's won three races in a row. More proof of his strength: the last few races we haven't heard Rosberg ask for regular updates about what Hamilton's doing, he just drives. Hamilton gave it his best but that wasn't enough.

Rolls-Royce Cullinan, Mercedes-AMG E 53 and BMW 2 Series | Autoblog Podcast #734

In this episode of the Autoblog Podcast, Editor-in-Chief Greg Migliore and Senior Editor, Consumer, Jeremy Korzeniewski kick things off with a discussion of the Rolls-Royce Cullinan and the future of the brand. The Mercedes-AMG E-Class is next up, followed by the BMW 2 Series Coupe.  Next, Senior West Coast Editor James Riswick reports from the ground at the first drive of the latest Honda HR-V. Our hosts revisit the week's news, including automakers requesting a lift of the EV federal tax credit cap, Chevy giving us a peek at its electric Blazer, and Ford recalling millions of vehicles, including about half of all the Mustang Mach-E EVs it has sold. Finally, our guys dig through the mailbag to help a reader decide whether to purchase a Ford Focus ST or another hot hatch. Send us your questions for the Mailbag and Spend My Money at: Podcast@Autoblog.com. Autoblog Podcast #734 Get The Podcast Apple Podcasts – Subscribe to the Autoblog Podcast in iTunes Spotify – Subscribe to the Autoblog Podcast on Spotify RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving Rolls-Royce Cullinan Mercedes-AMG E 53 BMW 2 Series Coupe Dispatch from the 2023 Honda HR-V first drive event GM, Ford, Toyota, Stellantis CEOs want EV tax credit cap lifted 2024 Chevy Blazer EV partly revealed, details coming in July Ford recalls Mustang Mach-E, includes stop-sale order Ford recalls 3 million other vehicles Spend my money Feedback Email – Podcast@Autoblog.com Review the show on Apple Podcasts Autoblog is now live on your smart speakers and voice assistants with the audio Autoblog Daily Digest. Say “Hey Google, play the news from Autoblog” or "Alexa, open Autoblog" to get your favorite car website in audio form every day. A narrator will take you through the biggest stories or break down one of our comprehensive test drives. Related video: