N. Carolina May Ban Tesla Sales To Prevent "Unfair Competition" 555
nametaken writes with this excerpt from Slate: "From the state that brought you the nation's first ban on climate science comes another legislative gem: a bill that would prohibit automakers from selling their cars in the state. The proposal, which the Raleigh News & Observer reports was unanimously approved by the state's Senate Commerce Committee on Thursday, would apply to all car manufacturers, but the intended target is clear. It's aimed at Tesla, the only U.S. automaker whose business model relies on selling cars directly to consumers, rather than through a network of third-party dealerships. ... [The article adds] it's easy to understand why some car dealers might feel a little threatened: Tesla's Model S outsold the Mercedes S-Class, BMW 7 Series, and Audi A8 last quarter without any help from them. If its business model were to catch on, consumers might find that they don't need the middle-men as much as they thought."
State laws imposing restrictions on manufacturers in favor of dealers aren't new, though; For more on ways that franchise operations have "used state regulations to protect their profits" long before Tesla was in the picture, check out this 2009 interview with Duke University's Michael Munger.
The best part of the article is at the bottom (Score:5, Informative)
It's just more money-in-politics. The sponsor is State Senator Tom Apodeca, who received the maximum amount allowed ($8000) in campaign contributions from the North Carolina Automobile Dealers Association. Of course, they are AGHAST at the idea that they've got a financial stake in this...
Robert Glaser, president of the dealers association, told the News & Observer that the law prohibiting Tesla sales isn’t just about his industry’s self-interest. Pointing to the Tesla representatives at a recent hearing, he said, “You tell me they’re gonna support the little leagues and the YMCA?”
If that’s the real issue, then I may have some good news for all concerned: I asked O’Connell, and he assured me Tesla would be happy to support the little leagues and the YMCA if that’s what North Carolina requires in order to do business there. Problem solved! Right, Mr. Glaser?
Re:And we don't need the man in the middle indeed. (Score:5, Informative)
Sign We the People Petition (Score:4, Informative)
https://petitions.whitehouse.gov/petition/overturn-franchise-laws-limit-auto-manufacturers-selling-their-vehicles-directly-consumers/rlShbLzr [whitehouse.gov]
Re:And we don't need the man in the middle indeed. (Score:4, Informative)
I don't understand how they're going to stop it anyway. Unless this law makes it illegal for an individual to buy a car from an out-of-state individual, how are they going to stop me from buying a Tesla (or any other new or used car) from any legal out-of-state vendor or individual? Are they going to stop me at the state line and slap the cuffs on me? Refuse to license any car in the state unless I can prove it was bought from an in-state dealer?
GM tried that (Score:3, Informative)
it was called Saturn.
Re: Who votes in those bozo politicicans? (Score:2, Informative)
The state districts are gerrymandered to death - there is massive GOP over representation. The state is by popular vote teetering between democrat and GOP - moving inexorably to the former due to northern and external immigration.
About Taxes and State Revenue (Score:5, Informative)
One of the biggest sources of revenue comes in from sales and licensing of new vehicles where over time dealership industry is powerful on the state level due to this relationship. When dealers make money, the state gets serious revenues. So when a new type of car comes along with a company who can't afford the high barrier of entry to setup a dealer network the whole thing turnes into market protection in the guise of customer service. If you are interested in buying a Tesla and living in a city with a center, you can go there but it is like bizzaro land because they are forced to operate as a "service center" instead of a "dealership" subject to fees and zoning that are often waived or offset for "real dealerships".
It is stuff like this that makes me wish the market would be dragged into the 21st Century. Shopping for a car is one of those tasks that is slightly higher than "doctor visit". There is little to no value added for going to the dealership so I would rather just order directly from maker themselves than to sit through the junk you need to do for a purchasing a car.
Re:Why cant Tesla create a dealership? (Score:2, Informative)
Sate laws dictating that car dealers cannot be owned by the manufacturer. Every state has them.
Re:The best part of the article is at the bottom (Score:5, Informative)
Looks like a pretty blatant act of political corruption to me.
The only REAL problem here, is that in the US, this kind of corruption is perfectly legal.
It's a great pity. The US Foreign Corrupt Practices Act actually provides fairly robust(by the standards of white collar crime) penalties for companies that do business in the US and also engage in bribery in foreignistan or wherever.
The 'Domestic Corrupt Practices Act', by contrast, does not exist.
Re:Taxation backfire (Score:4, Informative)
Sales ("use") tax on vehicle purchases are generally computed based on the state of registration, not the state of sale. Even if you originally registered the car in VA (and you should have some difficulty doing that if your license is from NC), when you changed the registration, you'd probably pay some tax. If you didn't change the registration, your neighbors can rat you out.
Re:The best part of the article is at the bottom (Score:3, Informative)
Re:Cherry-picking (Score:5, Informative)
The Model S is a top-end full-size full-luxury sedan. It makes complete sense to compare it to the top-end full-size full-luxury sedans of the incumbent manufacturers.
The fact that they were able to outsell any manufacturers in any series during their first attempt at a car in this class still says a lot. Given that this is their second success (the first being the Roadster), and that each success is building on the last, I think that the future of Tesla Motors is very bright and judging by the stock price, so do many others.
Oh that is not the issue (Score:5, Informative)
That is basically company owned dealerships, they have existed for a long time and the decent ones were a FAR better deal if you just wanted a good car for a fair price with good service.
BUT it ties the car company to the vagaries of the local car market including having to worry about brick and mortar store issues like location.
For a very common large scale car maker, it is barely do-able. For a niche market? There is in Holland 1 Ferrari dealer. But that is not the issue because people in the market for such a car don't have an issue traveling a bit in their luxury car and are in any case likely to be living in the west part of Holland (the store used to be in Utrecht, which is almost dead center for the economic heart of Holland).
But it is FAR FAR easier to serve all you need to serve with a web site and a service van. If Tesla has to open a shell company in every state, in every country in every county/province, that is a LOT of shell companies. And why should it? Amazon doesn't have to do it. Why should car dealers not face pressure from web stores? Especially since dealers COULD have a unique location issue, fixing your car.
This is clearly bought law. The US has the right to bear arms. Stop killing kids with your guns and kill yourselves some politicians instead. Or are the guns you carry just to compensate for your small penisses. Come on US, show us why you got more guns then citizens.