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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.

Geely chairman is now the single biggest investor in Daimler

Li Shufu, the chairman and main owner of Chinese carmaker Geely, has built a stake of 9.69 percent in Daimler AG, the German carmaker said in a regulatory filing on Friday. The stake, worth nearly $9 billion at the current valuation for Daimler shares, makes Li the biggest single shareholder in the maker of Mercedes-Benz cars, trucks and vans headquartered in the German city of Stuttgart. A Daimler spokesman called the stake purchase a private investment by Li. "We are delighted, with Li Shufu, to have won over another long-term investor who is convinced of Daimler's innovative prowess, strategy and future potential," the spokesman said in response to a request for comment. "Daimler knows and respects Li Shufu as a Chinese entrepreneur of particular competence and forward thinking." Li's stake purchase makes him the top shareholder in Daimler ahead of the Kuwait Investment Authority, which owned 6.8 percent as of Sept. 30, according to Thomson Reuters data. Earlier this month, the German newspaper Bild am Sonntag reported that the Chinese industry giant was seeking to become Daimler's biggest shareholder, likely exceeding the 6.8-percent stake of the Kuwait Investment Authority. The paper said Daimler had reportedly turned down Geely's $4.5 billion offer for a 5-percent stake via a discounted share placement, saying that Geely could buy shares in the open market. Institutional investors currently own 70.7 percent of Daimler, and the company already has strong ties to Chinese automakers BAIC and BYD. Bild am Sonntag said the move was intended as a strategic alliance against Apple, Google and Amazon on autonomous and connected cars. And Reuters reported that Daimler wants to have bespoke "robo taxis" on the road quicker than Google's Waymo, and views Geely as a strong partner for that. Geely conversely is interested in Daimler's electric car battery technology, and sources quoted by the German paper say there are plans to establish joint electric car manufacturing in Wuhan, China, to meet China's smog-reducing quotas. Geely is developing the Lynk & Co. brand of electric and hybrid cars. Geely owns Volvo, which has enjoyed a renaissance under the arrangement, as well as the maker of London's black cabs. In December, it bought a stake in AB Volvo, the maker of Volvo trucks.

Volvo changes 'Iron Mark' logo to fit with the times

Volvo's first car debuted in 1927, bearing the Swedish automaker's now-famous "Iron Mark" logo of a circle with an arrow pointing to the upper right. For 73 of the 94 years since that Volvo OV 4 open carriage, the company's been represented graphically by four versions of a two-dimensional-looking logo, either a colorful oval that looks like a sandwich shop sign, or the Iron Mark logo, or just script. From 2000 to 2020, that Volvo cars trademark has changed four more times (plus once for Volvo trucks), Volvo creating three versions of a 3D-looking Iron Mark with a blue bar across the middle containing the script, and in 2020, changing the font of the script. Now that's it's 2021, it's apparently time for another overhaul. Visitors to Volvo's Facebook page realized Volvo changed its profile picture to a new and very flat version of its Iron Mark. This isn't the revolution everyone's making it out to be. When Volvo debuted its last new Iron Mark in 2015, one of the Swedish ad agencies that created it wrote, "The logo has been simplified in its purest form and conveys the brand’s vision: to be the world's most progressive and desirable premium car brand." Thing is, the agencies created two versions of the logo — one in silver with three-dimensional shading that retained the blue crossbar drawn up in 2000, and another in black and white, a solid black circle and attached arrow with a black crossbar bearing white "Volvo" script. The automaker's been using the silver, shaded version everywhere the public would see it. Seems Volvo wanted something even more "simplified in its purest form," though, so it could have simply requested a tweak to the B&W version it's been sitting on for six years.   The question, "Do you like it," probably doesn't matter, because it won't stop anyone from buying the product. Besides, the Volkswagen logo went flat in 2019, Nissan went flat in 2020 and so did BMW, except that its flat roundel is for everything but its cars, and Kia went flat this year — along with Warner Brothers, Pringles UK, and Burger King, that last company seemingly trying to win an award for being plain. Simplicity in two dimensions is the thing now. A Volvo Australia rep told Drive the rollout "will be gradual. [This week] we start by rolling out the updated identity on our main website, main social media platforms and in the new Volvo Cars mobile app.