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Businesses Government Transportation

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.
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N. Carolina May Ban Tesla Sales To Prevent "Unfair Competition"

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  • Re:No middle man (Score:5, Interesting)

    by geekoid ( 135745 ) <dadinportland&yahoo,com> on Tuesday May 14, 2013 @11:00AM (#43720087) Homepage Journal

    yep, the middle mans job is to offer a service that the manufacture can't or doesn't want to do. Usually due to cost.
    If that cost goes away, so do middlemen.
    From what I have read, manufacture owned dealers in the past were always better for consumers then private owned dealerships.

    This is akin to not allowing digital books because they hurt book stores.

  • by 140Mandak262Jamuna ( 970587 ) on Tuesday May 14, 2013 @11:01AM (#43720097) Journal
    Creating a company costs some 150$ or so. Can Tesla Motor Corporation set up a wholly owned subsidiary Tesla Motor Sales and Service Corporation of North Carolina and sell it through them? Corporations are people, but it is lot harder (and more fun) to create real people than corporations.
  • Cherry-picking (Score:5, Interesting)

    by MachineShedFred ( 621896 ) on Tuesday May 14, 2013 @11:06AM (#43720177) Journal

    So it outsold the 7-series (top end full-size full-luxury sedan), the S-class (top end full-size full-luxury sedan) and the Audi A8 (full-size full-luxury sedan), which even BMW, Mercedes, and Audi would admit make up a small fraction of their overall sales, and this is a win?

    When you outsell the 5-series, the E-class, and the Audi A6, then you'll have something to talk about, as all three manufacturers sell an order of magnitude more of those.

  • Either way there's profit involved, the question is whether the car dealership is an independent entity that gets a cut of the process or owned by the car manufacturer. I would rather deal with just one company than two that are constantly in conflict over who gets what share of the profits from sales and maintenance of vehicles.

    I don't understand the dealership model anyway - when you're the only Toyota dealer in a fifty mile radius and Toyota is having a banner year, you're all set. But if Toyota dealerships open all around you, then what? Or say you're a Saturn dealership, and then General Motors closes the brand. Or you're a Lincoln dealership, and Lincoln demands that you pay for a multi-million dollar remodel of your showrooms at your own expense. Or you're a Nissan dealership, and they release a run of shoddy products nobody wants to buy (for the sake of argument - I have nothing against Nissan). I guess it makes sense if you're already wealthy - open franchises for six different brands at once, and unless the economy tanks any losses in one place might be offset by gains elsewhere. But for someone launching an individual franchise? You are at the mercy of the manufacturer, choose carefully.
  • A compromise system might be the best solution. When you contribute funds to a campaign, half of your contribution goes into the fund which is evenly distributed between all candidates with enough petition signatures or whatever to get on the ballot. Getting on the ballot is gamed as it is, but I'm not sure on what other basis you can reasonably and meaningfully disburse funds.

  • by brit74 ( 831798 ) on Tuesday May 14, 2013 @11:30AM (#43720487)
    A few months back, NPR's Planet Money did an episode on the car dealership business and how entrenched they are with the government. It goes back for decades. It's worth a listen.

    "Episode 435: Why Buying A Car Is So Awful"
    http://www.npr.org/blogs/money/2013/02/12/171814201/episode-435-why-buying-a-car-is-so-awful [npr.org]
  • by citizenr ( 871508 ) on Tuesday May 14, 2013 @11:46AM (#43720723) Homepage

    It can be owned by Elon himself.

  • by sjbe ( 173966 ) on Tuesday May 14, 2013 @12:07PM (#43720979)

    why? why should I not be allowed to support the candidate I believe in? why should my money be pooled and given to politicians I dont agree with??

    For the same reason your money shouldn't go (solely) to a candidate *I* agree with. Because the debate should be about ideas and leadership, not who has the biggest bankroll. It is well established that special interest funding causes politicians to listen disproportionately to certain parties. If you fund a specific candidate then he is (potentially) obligated to you but he has to govern everyone. Why should he listen to your needs more than any other constituent just because you happened to fund the winning candidate?

    Money gives people a disproportionate voice in the political system. I think the Supreme Court erred greatly when it said that money = speech. One should not prohibit people from spending money on political activities but one should not give someone a bigger voice simply because they have access to more money either. While I don't think you can take money completely out of the equation, we don't have to let it dominate the conversation the way we have either. Our congressional representatives spend virtually all their time fundraising instead of thinking about how to make this country a better place. As soon as they win one election they start fundraising for the next. That cannot possibly be good for the country as a whole.

  • by jader3rd ( 2222716 ) on Tuesday May 14, 2013 @12:09PM (#43721007)

    I don't understand the dealership model anyway

    It's basically a legalized pyramid scheme, that was created in the hopes of ensuring that the local municipality has some "good" jobs. Episode 435: Why Buying A Car Is So Awful [npr.org] is a very informative listen.

  • by fl!ptop ( 902193 ) on Tuesday May 14, 2013 @12:13PM (#43721089) Journal

    Money is not speech

    Perhaps, but my freedom to spend my money as i see fit, on the candidate or candidates of my choosing, is protected under the 1st Amendment.

    corporations are not people

    True, but when the government decides to regulate corporations, they have a right to speak, like the individual person does.

  • by cayenne8 ( 626475 ) on Tuesday May 14, 2013 @12:24PM (#43721233) Homepage Journal
    You know...I've never really understood the dealership model at all...at least, not in this day in age.

    Why don't manufacturers just set up their own storefronts, with a few models to try, and let you just do build to order. Seems like this model would save them money on inventory, etc...?

    I understand the dealership model in years gone by...but with todays tech and internet savvy mkt, why haven't they abandoned this in favor of a more streamlined, direct to consumer marketing/sales strategy?

  • by Microlith ( 54737 ) on Tuesday May 14, 2013 @01:37PM (#43722153)

    You don't have to alter the First Amendment. What you need to do is fix Corporate Law that explicitly identifies them as not being people. Then, you should grant corporations every right they have, rather than implicitly giving them every right that actual people have.

    Entities whose existence is purely a result of government actions should not be able to pervert the course and actions of said same government. Otherwise you end up with the disaster we have now.

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