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Car subscription services: A slow, expensive start — but the potential is huge

Americans are used to paying for subscriptions — to magazines and cable television, for instance — but experience shows they'll cancel when the price of admission gets too high, or there are more tempting alternatives. Cord cutters ditched nearly 1.5 million pay-TV subscriptions in 2017, according to a survey by Leichtman Research Group. Cable TV started out cheap with basic offerings, and then got expensive. The auto industry's subscription offerings are new, but they're starting out costly, and not price-competitive with traditional leasing. The upside is that they take the hassle out of car ownership for busy people by letting the service take care of maintenance, insurance, licensing and taxes. And they give consumers choice, often allowing relatively painless switches between different cars in the automakers' lineup. Subscription services also point the way toward an ownership-free auto experience, and offer an easy transition to a potential world where ride- and car-sharing will be dominant. Subscriptions are here to stay, but consumers may take a while to "get" them. Lincoln's subscription service for lightly used 2015 to 2017 models, offered through the Ford-owned Canvas beginning this year, got off to a slow start. Many early subscribers canceled. Last month, Cadillac announced it would " temporarily pause" its $1,800-per-month Book subscription service for "adjustments" as of December 1. According to the Wall Street Journal, "Snags with the back-end technology used to support the service made some customer-service functions tedious and time-consuming, adding costs for the company." The challenge for automakers is to come up with a strategy that offers consumers a compelling, affordable option to regular ownership, and one that can also make a profit. I think they'll find that sweet spot, but they're not there yet. Jack Nerad, former executive editorial director at Kelley Blue Book and author of " The Complete Idiot's Guide to Buying or Leasing a Car," points out that "A lot of people expected that subscriptions would be very valuable for people who wanted inexpensive transportation, but the reality is quite the opposite. Subscriptions are offering more choices for the wealthy.

Gordon Murray, F1-driven production and .. the Pontiac Fiero

Gordon Murray's design and engineering chops are unquestionable. But does his carmaking approach owe something to the short-lived Pontiac Fiero, a scrappy little car program that emerged from GM against serious resistance? Murray had a Formula One career that ran from 1969 to 1991, with stints at Brabham ('69 to '86) and McLaren ('87-'91), that resulted in several shelves' worth of trophies for the cars he was instrumental in designing. He moved on to McLaren Cars, the consumer side of things, where, during his tenure from 1991 to 2004, he helped design the McLaren F1 and the Mercedes-Benz SLR McLaren, two cars that took learnings from his two decades in Formula One. What do all of these cars have in common? Three things: They are light. They were built in limited numbers. And they were (and are) exceedingly expensive—when the McLaren F1 debuted in 1994, it stickered at $815,000. Murray went on to establish Gordon Murray Design in 2007. GMD has created some interesting concept vehicles, such as the diminutive T.25 city car (94.5 inches long, 51.1 inches wide and 55.1 inches high), and the OX, a lightweight truck for the developing world that packs like an IKEA shelf and is working toward realization through a worthy crowdfunding campaign established by the Global Vehicle Trust. Now he has created a vehicle manufacturing company, Gordon Murray Automotive, that will use manufacturing methods that he developed under the moniker "iStream." Unlike a unibody, there are the "iFrame," a cage-like construction made with metallic components, and the "iPanels," which are composite. The panels aren't simply a decorative skin; they actually provide structure to the vehicle. Presumably this has something of the F1 monocoque about it. Going back to the three elements, (1) this arrangement results in a vehicle that can be comparatively light; (2) Murray has indicated that his manufacturing company will be doing limited-run production; and (3) to launch Gordon Murray Automotive they are going to be building a flagship model, about which Murray said, "With our first new car, we will demonstrate a return to the design and engineering principles that have made the McLaren F1 such an icon." Which seems to imply that it will be on the pricey side. According to the company's verbiage, "iStream forges an entirely new production method that defies conventionality with its Formula One-derived construction and materials technologies." It also sounds a whole lot like ...

Daimler CEO Zetsche answers 'Most likely' to question of a Maybach SUV

When Dieter Zetsche was asked about the possibility of getting Maybach, the reimagined Mercedes-Benz ultra-luxury sub-brand, into the premium SUV game, the Daimler CEO reportedly told Auto Express, "Most likely." Those two little words aren't a firm answer – let alone an indication of timing – but we wouldn't be shocked to find out Mercedes is already working on one. Range Rover has gone even more upscale, the Bentley Bentayga is coming this year, as will the Maserati Levante. Rolls-Royce is deciding on an SUV this year (we think it's only a matter of time before they say "yes"), the Lamborghini Urus is still expected in 2018, Aston Martin is raising funds to build a crossover, and there have been rumors of a BMW X7 and Audi Q9 for years. Point being, everyone is busy writing their own invite to this ultra posh party. The latest comments would appear to put to rest any will-they/won't-they questions around a high-riding Maybach offering. There were rumors last summer that a GL-Class SUV (a model range shortly to be known as GLS-Class) with revamped styling and lots of luxury touches would join the top-tier sub-brand, but then in November, Mercedes' global head of sales and marketing told Automotive News, "I don't want to categorically rule anything out, but at this stage we have no plans for it [a Maybach SUV]." If and when a Maybach utility does become official, we'll only be picking up where we left off with the brand's previous incarnation: a GL-based Maybach was rumored way back in 2007. News Source: Auto ExpressImage Credit: Copyright 2015 Steven Ewing / AOL Maybach Mercedes-Benz SUV Luxury mercedes gl-class