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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.

Mercedes-Benz cut fleetwide emissions by 4.3 percent last year

Mercedes-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.

Why it's difficult to accurately test the efficiency of a plug-in car

When it comes to electric vehicles and plug-ins in general, the Environmental Protection Agency-certified range is a hugely important number. While actual range anxiety is largely psychological, the magic number does provide a point of comparison of buyers considering one EV over another. The driving distance is also often touted by automakers when marketing their models. Unfortunately, as Green Car Reports finds in a recent deep dive, the way the EPA calculates the figure is a convoluted mess, and discovering the reasons why is definitely worth the read. The issue isn't about bad science but instead comes down to vague wording. The EPA's accepted range test is sourced from an evaluation called J-1634 from the Society of Automotive Engineers, and it seems to provide balanced results for vehicles that automatically reach a single state of charge when plugged in. However for models with multiple charge settings, the situation gets complicated very quickly. Of course, these modes are often created in the software, meaning that a car's certified driving distance can change with just a few taps of the keyboard without the real world results owners might experience actually changing. By showing the test's effects on the certified range for the Tesla Model S, Nissan Leaf and Mercedes-Benz B-Class Electric Drive over the last few years, Green Car Reports makes a compelling argument that it's the evaluation that needs to change. Thankfully, it appears that the solution is a very simple one. Get the details here.