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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.

2015 Belgian Grand Prix is a return to scheduled programming

With summer intermission over, the second half of the Formula One season commenced in the Belgian countryside at Spa-Francorchamps. After qualifying, it looked a lot like the first half of the season with just a few minor changes. Lewis Hamilton was even more dominant in his Mercedes-AMG Petronas than usual, regularly taking half a second out of his teammate in just the middle sector of the circuit. Teammate Nico Rosberg tightened it up a tad for his final hot lap, but Hamilton still took pole by 0.45 seconds ahead of Rosberg in second. With his Williams back at a power track, Valtteri Bottas got himself up to third, although more than a second behind Hamilton. Romain Grosjean in the Lotus in fourth had his best qualifying performance since his fourth-place grid spot at the 2013 US Grand Prix. This was a huge boon for Lotus, the team facing another financial issue off track that threatened to have its cars impounded as soon as they left the circuit. Grosjean had to have his gearbox changed before the conclusion of six races, however, so the five-spot penalty meant he'd actually line up ninth for the race. Sergio Perez put the Sahara Force India in fifth, where we're more used to seeing his teammate Nico Hulkenberg, just ahead of Daniel Ricciardo in the Infiniti Red Bull Racing in sixth. Felipe Massa got the second Williams in seventh, in front of the second Lotus of Pastor Maldonado in eighth. Then came the first and only Ferrari in the top ten, Sebastian Vettel qualifying ninth after a disappointing Saturday for the scuderia; teammate Kimi Raikkonen suffered gearbox issues and qualified way down in 16th. Carlos Sainz took tenth in the Toro Rosso. A new start procedure in Belgium meant drivers had to handle clutches on their own, without the engineers finely tuning bite points between the garage and the start line. That was in conjunction with another rule limiting the kinds of radio messages possible between engineers and drivers, aiming to put more of the car in the drivers' hands. After an aborted start when Hulkenberg's car quit while sitting on the grid, Hamilton made the most of the new procedure. His start wasn't amazing but he beat everyone else off the line, while those behind were alternately getting bogged down or leaping ahead. Midway through the first lap the top ten was Hamilton, Perez, Ricciardo, Bottas, Rosberg, Vettel, Maldonado, Grosjean, Massa, Marcus Ericsson. At the end of 43 laps, Hamilton would still be in the lead.

Mercedes-AMG once again joins forces with Cigarette Racing

Any time there's a new loins-quaking Mercedes-AMG introduced, you need to keep your eye on the aquatic horizon around the time of the Miami International Boat Show for the Cigarette tie-in to come roaring into port. The SLS AMG had its 2,700-horsepower, 46-foot Rider, the C63 AMG Black Series got a 1,350-hp, 50-foot Marauder, the G63 AMG got a 1,750-hp, 43-foot Huntress, and the SLS AMG E-Cell got a matching wild yellow 2,200-hp, 38-foot electric concept boat. Now that we're in 2015 with another AMG and another boat show, we have another Cigarette. Mercedes hasn't dropped the goods on this one yet, but it will be twins with the AMG GT. After that, we're guessing it will have a can't-miss-it paint job, be in the 40-foot range, and have something like 2,000 hp. The show is February 12-16, we'll have all the info for you then. Featured Gallery Mercedes-AMG and Cigarette Racing Auto News Mercedes-Benz Coupe Luxury Performance mercedes-amg mercedes-amg gt