1989 Volvo Wagon Automatic Transmission, Luggage Rack on 2040-cars

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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.

New Lotus SUV could be based on Volvo architecture

Last year, Chinese carmaker Geely upped its stake in Lotus to a majority, recently investing more money into the British brand. Now, talking with Automotive News, CEO Jean-Marc Gales says Geely has approved three new models: two sports cars and the third an SUV. The sports cars will be announced later this year, and they will reach production in 2020. The last time a properly new Lotus debuted was in 2009 with the Evora, so a decade later new products are certainly due. But what about that SUV? Autocar says that since Geely also owns Volvo, that makes it possible for Lotus to base the SUV onto the Volvo SPA platform, which is also used in the XC60 and XC90. The choice of platform would mean the SUV would have to be a four-cylinder model, but that's nothing new to Lotus. It could even use Volvo's "Twin Engine" hybrid setup, which would mean a power output of over 400 horsepower as stock, and that with Lotus' eagerness for lightness could be a potent combination. Autocar quotes Gales as saying, "It will go round bends like nothing else in its segment." The target weight for the approximately Porsche Macan-sized SUV is under 2,000 kilos (4,400 pounds), and the Macan weighs 4244 pounds in 400-hp Turbo guise. The Lotus SUV is projected to hit the market in "about four years," and it's very likely to be built in China instead of Britain, as the Chinese market is very enticing — especially for this class of vehicle. The vehicles will still be designed at Lotus' Hethel HQ. Related Video:

Volvo Concept XC Coupe leaked [w/video] [UPDATE]

Last month, Volvo gave us a teaser of its new Concept XC Coupe, set to debut at the Detroit Auto Show. And now, just a few days before the doors open at Cobo Hall, leaked images of the stylish new crossover showcar have leaked online, courtesy of CarBuyer.co.uk.
The Concept XC Coupe is a sort of high-riding successor to the very attractive Concept Coupe that wowed us at the 2013 Frankfurt Motor Show. With its burlier dimensions and hatchback configuration, the Concept XC gives us a better glimpse at Volvo's new styling direction, which is expected to debut in production form on the next-generation XC90 crossover. We've already seen some leaked sketches of the new XC90, and it sure does look like this Concept XC.
We don't have any further details about the Concept XC Coupe, but from the images, we can see that it will use a four-passenger seating configuration, with rear seats that fold flat. There are also exterior badges for surround radar and a 360-degree camera system, suggesting some new safety tech fitting of safety-minded brand.