Banning sales to protect sales

[Kheldarson]

At least, that's what they say they're doing.

Original article

and a quick summary.

Basic gist, the car dealership association is helping push legislation that would prevent the Tesla car company from selling their product directly to the consumer. And the North Carolina legislature is going for it.

The dealerships say that this is to "protect consumers". From what? Tesla seems to be targeting their ideal market and taking care of business. You either buy the car or not, and if you don't, you go somewhere else like everybody else, dealership or no.

I also don't see why NC would see a growing business as a problem. Don't you want more revenue?

[Gravekeeper]

Its sponsor is state Sen. Tom Apodaca, a Republican from Henderson, who has said the goal is to prevent unfair competition between manufacturers and dealers

The free market never applies when it affects them and their lobbyists personally does it? So let me see if I have this right:

"Lets improve healthcare and save millions of lives!" "NO! FREE MARKET!"
"Lets improve bank regulations and prevent another economic disaster!" "NO! FREE MARKET!"
"Hey, we made a superior product." "UNFAIR!"

[BlaqueKatt]

Basic gist, the car dealership association is helping push legislation that would prevent the Tesla car company from selling their product directly to the consumer. <snip> Tesla seems to be targeting their ideal market and taking care of business.<snip>I also don't see why NC would see a growing business as a problem. Don't you want more revenue?

Simple, no dealer markup, so the tesla is around the same cost as traditional luxury vehicles, and since it doesn't use fossil fuels directly, the oil industry is losing money, the car dealerships are losing money, and they have pretty good lobbyists.

[Andara Bledin]

They want to be the gatekeepers.

I particularly like how it's reported that Tesla's guy essentially said that displaying a Tesla in a showroom of subcompacts and SUVs would be akin to selling Dom Perignon in the food court at the local mall.

This is the first stage of what happened to music and book retailers. The reach of the Internet for direct marketing purposes is making about half of the dealerships in existence redundant, and every last one of them is going to fight against that because they fear they might be in that half.

But I do like how they claim that franchises being local matter in the luxury car space. Seems to me that someone that can drop sixty thousand (minimum) for a shiny car can probably afford to maintain it.

I can just see it now: People hiring straw buyers to legally purchase the vehicles, then reselling them to those in the states that have banned direct sales.

[protege]

I particularly like how it's reported that Tesla's guy essentially said that displaying a Tesla in a showroom of subcompacts and SUVs would be akin to selling Dom Perignon in the food court at the local mall.

It's been done before--both De Tomaso Panteras were sold through Ford's Lincoln-Mercury dealerships, as were Opel GTs sold via Buick dealers. Both attempts didn't last long--only about 6 years each. Some of it was reliability issues (Pantera), some was upcoming models soon made them obsolete (Opel).

But this...smacks of protectionism. They claim it's to "protect customers." It's not. It's more about protecting the monopolies that exist in many small towns. These dealers enjoy having a ready market for the products...and will do what they have to, to keep it.

Sadly, that sort of attitude eventually leads to their undoing. Much like the American industry...when they tried to use the Feds to slap massive import taxes on Asian-built vehicles. That's one reason why Honda and others started making their wares here.

But I'd like to know one thing... If I really wanted a Tesla, what's to stop me from driving to SC (or VA), renting a hotel room or an apartment for a month, have the car delivered there...and then transferring the title once back in NC?

[Greenday]

But I'd like to know one thing... If I really wanted a Tesla, what's to stop me from driving to SC (or VA), renting a hotel room or an apartment for a month, have the car delivered there...and then transferring the title once back in NC?

Nothing. Just the hassle of it being too much.

This is pretty blatant work of the major car companies' lobbyists and probably oil companies who stand to lose a lot of money if people move to electric cars. I love the Tesla and would love to own one (Except it being too hard to make long trips in one).

[gremcint]

"Hey, we made a superior product." "UNFAIR!"

otherwise known as the apple school of development.

[HYHYBT]

(Except it being too hard to make long trips in one).

So long as "too long for this car" doesn't come around on a near-daily basis, keep your previous one for those trips. Or, if it's only a couple times a year, rent a car.

The trouble to me (were I in the market for such a vehicle) would be in trying it out. Last time I was shopping for a car, the kind I was pretty sure I wanted just didn't feel right once I was in one. And there was a car in the family that felt great at first but gave me a backache if I was in it too long. My grandfather once had to sell a brand new car he'd bought because he couldn't stand the seat. The one I wound up getting (actually a different one of the same model) in addition to actually driving the car I got to sit in it parked for about an hour. I wouldn't know how to go about that ordering one online.

[Andara Bledin]

Tesla does test drives. But you have to be able to get to a show room.

[PepperElf]

you know i just watched atlas shrugged 2...

so would this be "fair share" law? where companies are punished for selling more than others?

[Kheldarson]

you know i just watched atlas shrugged 2...

so would this be "fair share" law? where companies are punished for selling more than others?

I knew there was a reason this bugged me...thanks for the reminder!

Yeah, I think this would be exactly like the "fair share" law. Don't actually improve yourself, just force everybody else to stay at your level. Because that's progress.

[smileyeagle1021]

But this...smacks of protectionism. They claim it's to "protect customers." It's not. It's more about protecting the monopolies that exist in many small towns. These dealers enjoy having a ready market for the products...and will do what they have to, to keep it.

Reminds me of what became the undoing of Nissan of Reno... okay, the humbling of Nissan of Reno... for the longest time they charged a Truckee Meadows Market Fee, which was basically a "we're the only Nissan dealership in this part of the state, we'll charge whatever we want, and you'll pay it"... yeah, that was until a dealership in Roseville made a sales tax agreement with the state of Nevada and started offering delivery of vehicles to Verdi (right at the state line) for a smaller charge than the fee that Nissan of Reno was charging and people started show rooming the Reno dealership, then placing a phone call to the Roseville dealership and making the purchase over the phone, faxing all the signatures that are needed... needless to say, that fee has disappeared for some reason

you know i just watched atlas shrugged 2...

so would this be "fair share" law? where companies are punished for selling more than others?

Completely off topic... but somehow I feel as if I have missed the point of the book when I borrowed the book from the library and have a hold on the DVD at the library also... somehow I think Ms Rand would rather I redboxed it than use a taxpayer funded way of watching it

[daleduke17]

Don't actually improve yourself, just force everybody else to stay at your level. Because that's progress.

NCdLB - No Car Dealership Left Behind.

Sounds a lot like the American education system as well. Punish the kids who want to do well, but socially promote the idiot kids so they don't get their feelings hurt.

[Panacea]

I also don't see why NC would see a growing business as a problem. Don't you want more revenue?

North Carolina's political system is stuck in the 1950's in terms of corruption and pay to play rules. For all that the locals complain about Chicago style politics, the politics here really give Chicago a run for their money. We've had several major scandals along this line since I've lived here; in particular the down fall of former Speaker of the House Jim Black who made a money deal with Republicans to stay Speaker of the House, and who pushed through a law requiring pre-school eye exams be done by opthamologists (he's an opthomalogist) rather than pediatricians who do it just as well for a fraction of the cost (that law has since been repealed).

That's what this is: Tesla hasn't paid to play and the local car dealerships have. Money talks and bullshit walks. If the bill passes Pat McCrory (who is the mouthpeice puppet governor) will sign it and it will probably go to court . . . and lose. Damned GOP, keeps wasting time on BS instead of focusing on job development in the state.

But I'd like to know one thing... If I really wanted a Tesla, what's to stop me from driving to SC (or VA), renting a hotel room or an apartment for a month, have the car delivered there...and then transferring the title once back in NC?

You don't even have to go that far. Just find a friendly address in either state, even a hotel for the night and arrange for delivery and title in those states. Once you have a valid title, nothing keeps you from retitling the car in North Carolina.

Or, deliver to a friend or family member out of state, title it there, pick it up and drive it home and retitle it. No fuss, no muss.

This is pretty blatant work of the major car companies' lobbyists and probably oil companies who stand to lose a lot of money if people move to electric cars. I love the Tesla and would love to own one (Except it being too hard to make long trips in one).

Consumer Reports listed it as one of the best cars they have ever reviewed. The only reason it is not a Recommend is because there is no data on safety and maintenance. I'd love to own one as well, and would if I could afford one regardless of the long term trip issues since I'd probably keep my Ridgeline anyway.

you know i just watched atlas shrugged 2...

so would this be "fair share" law? where companies are punished for selling more than others?

Ugh. I tried to watch the first one and turned it off after about 15 minutes. Horrible movie, just horrible. Writing absolutely SUCKED.

Atlas Shrugged is a rant against communism; that's what the fair share law is all about. It basically nationalizes everything. That's not what North Carolina is doing. What North Carolina is doing is good old fashioned protectionism plain and simple. And it won't work. People will buy this car and drive it in this state. It will happen because Tesla is making a good product.

[smileyeagle1021]

Ugh. I tried to watch the first one and turned it off after about 15 minutes. Horrible movie, just horrible. Writing absolutely SUCKED.

Atlas Shrugged is a rant against communism; that's what the fair share law is all about. It basically nationalizes everything. That's not what North Carolina is doing. What North Carolina is doing is good old fashioned protectionism plain and simple. And it won't work. People will buy this car and drive it in this state. It will happen because Tesla is making a good product.

I know I might have gotten a different meaning out of Atlas Shrugged than most, but from my reading it was blasting protectionism just as much as communism and actually views them as two sides of the same coin. After all, the railroads would never have been nationalized if it weren't for the anti dog eat dog rule being in place first.
When businesses go to the government to intervene, they shouldn't be surprised when they keep intervening. The financial sector is learning that lesson now, they gladly accepted the bail out money and now they aren't liking the strings attached to it, many of those strings added well after they accepted the bail out. I wonder just what strings the car dealerships are now going to find tied around them because they invited interference.