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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.

Mercedes-Maybach Pullman is the luxury car for the discerning dictator

For decades, Mercedes-Benz and Mercedes-Maybach cars have been the ride of choice for leaders across the globe, presidents, ambassadors, dictators and despots alike. The Pullman model — a long-wheelbase six-seat variant — has been particularly popular with this select clientele. This week, the German automaker announced the latest version of the car, the Mercedes-Maybach Pullman S650. Essentially, this is a stretched version of the V12-powered Maybach with two rear-facing seats just behind the front row. Mercedes is calling this vis-a-vis seating. There's also a partitioning glass between the front seats and the rear cabin. This is of course to help prevent the chauffeur from learning and spilling any state secrets or plans for plans for secret moon bases. New for this model is a front-facing camera for rear-seat passengers. This allows occupants to watch for any oncoming obstacles, barricades or road blocks. Visually, there's no mistaking the Pullman for another Maybach or really anything else on the road. The car is 21.3-feet long, 4.5-feet longer than the standard Maybach or roughly the size of two and a half Smart Fortwo placed bumper-to-bumper. The requisite 20-inch 10-hole wheels are present and the standard pinstripe Maybach grille has been updated with a slightly new design. The car only comes in S650 trim, meaning it's powered by a 630 horsepower 6.0-liter twin-turbo V12. As expected, the Mercedes-Maybach Pullman isn't cheap. Orders have started, but be prepared to shell out at least $615,000 before adding any custom touches. Related Video: Featured Gallery 2019 Mercedes-Maybach Pullman View 10 Photos Image Credit: Daimler Design/Style Maybach Mercedes-Benz Luxury Special and Limited Editions Sedan mercedes-maybach mercedes-maybach pullman

2015 Spanish F1 Grand Prix makes its Deutsche mark

The first race of the European Formula One season inaugurates the second phase of the Championship. Teams overhaul their cars with the big updates they've been working on since Australia, and at the end of The Battle of Spain we find out how the positions on the field have changed. Mercedes-AMG Petronas driver Nico Rosberg brought a big update to his psychology, straight-up beating teammate Lewis Hamilton to take his first pole position of the season. Mercedes owns the front row and Ferrari maintains its status as primary challenger, Sebastian Vettel lining up in third. Williams proved it's been hitting the books to do better in class, though, Valtteri Bottas slotting into fourth. And Toro Rosso's visit to a track that rewards strong aero rewarded them with the best team grid position since the Italian Grand Prix in 2008: Carlos Sainz secured fifth, ahead of Max Verstappen in sixth. Kimi Raikkonen's bout of Saturday woes – it seems the Finn is always handicapped by lots of tiny issues – continued in Barcelona with one of his sets of prime tires getting cooked by malfunctioning tire warmers. He recovered well enough to take seventh on the grid, but he's got some strong competition ahead of him. He led three other drivers in the Continuous Issues department, Daniil Kvyat unable to wrestle his Infiniti Red Bull Racing higher than eighth, Williams driver Felipe Massa getting it wrong in Turn 3 to fall five places behind his teammate Bottas, and Daniel Ricciardo in the second Red Bull enduring another engine change and sloppy car behavior to get tenth. And while it turned out to be a steady race a little rough around the edges, the positions on the battlefield just might have changed. A little. Of the 66 laps in the race we might have seen Rosberg for three of them – maybe. The German got a smashing start, had a clear lead into Turn 1, and after that we checked in occasionally during his two pit stops and again at the checkered flag. He owned the entire weekend the way we're used to seeing his teammate do, and the cameras left him alone to run his race. No one got within seven seconds of him during the first third, and as the pit stop strategies played out that cushion grew. He finished seventeen seconds ahead of Hamilton, and 45 seconds ahead of third-placed Vettel. Hamilton, on the back foot all three days, stumbled out of the gate.