Help Tesla overturn dealer franchise laws!

[GeekEV]

I know this is primarily a LEAF forum (but we like all EVs don't we?). Tesla needs your help!

http://www.teslamotors.com/forum/forums/help-overturn-franchise-laws-success-future" onclick="window.open(this.href);return false;
http://www.teslamotors.com/forum/forums/elon-takes-texastweets-help" onclick="window.open(this.href);return false;
http://www.teslamotors.com/blog/tesla-approach-distributing-and-servicing-cars" onclick="window.open(this.href);return false;

The U.S. automotive industry has been selling cars the same way for over 100 years and there are many laws in place to govern exactly how that is to be accomplished. We do not seek to change those rules and we have taken great care not to act in a manner contrary to those rules.

Automotive franchise laws were put in place decades ago to prevent a manufacturer from unfairly opening stores in direct competition with an existing franchise dealer that had already invested time, money and effort to open and promote their business. That would, of course, be wrong, but Tesla does not have this issue. We have granted no franchises anywhere in the world that will be harmed by us opening stores.

Regrettably, two lawsuits have nonetheless been filed against Tesla that we believe are starkly contrary to the spirit and the letter of the law. This is supported by the nature of the plaintiffs, where one is a Fisker dealer and the other is an auto group that has repeatedly demanded that it be granted a Tesla franchise. They will have considerable difficulty explaining to the court why Tesla opening a store in Boston is somehow contrary to the best interests of fair commerce or the public.

It is further worth noting that these franchise laws do not even exist in the rest of the world, where almost three quarters of premium sedan sales take place.

 

[ebill3]

I am with Tesla in fighting the current lawsuits, because Tesla is not trying to undercut dealers, since they have no dealers. I am not aware that Tesla is trying to change existing law, or overturn existing laws. All Tesla is doing is asking for fair application of existing regulations. Texas might be a different situation, as I understand they really have their hands tied there.

I do not like the tactics and business practices of most auto dealers, but I do not want the federal government usurping state regulations. Some folks, like President Obama, think the federal government is the solution to all problems. I do not, but sometimes think the federal government IS the problem. I see nothing wrong with states not allowing manufacturers to undercut independent dealers. But again, that is not what Tesla is doing.

And, best I can determine, that We the People site has not resulted in much, if any, meaningful change. It is a "feel good" operation.

I do not now, never have, and never will work in the automobile sales industry.

 

[SteveInSeattle]

The separation of manufacturers and dealers is a consumer protection... to prevent monopoly control. The market for cars has changed in that there are more competitors and the internet makes information much easier to access, but it isn't clear to me that bypassing dealers is a beneficial plan. The issue is complex,

 

[Elephanthead]

Tesla needs to set up dealerships. Problem solved.

 

[ebill3]

Tesla needs to set up dealerships. Problem solved.

No way!

Tesla needs to continue to diligently refute the automobile dealer associations. Tesla is doing nothing wrong.

 

[Nubo]

Dealerships are blood-sucking ticks on the economy whose only purpose is to offer customers the illusion of "beating the game". If you've ever worked at a carnival, the skills and tactics are 100% transferable.

Once the car is sold, the dealership's purpose is to deny warranty coverage.

The only thing keeping these leeches in business are state laws guaranteeing their middleman status.

The Feds have my blessing to usurp at will.

 

[pjoseph]

Direct selling & servicing is a bold plan. Think Apple store. i really hope Tesla succeeds, especially here in Texas.

Dealers are outdated middlemen. Does anyone go to one and not feel ripped off?

 

[leafedbehind]

I'm all in favor of wrestling control of car sales from dealerships. I feel more greasy leaving a car dealership than I do McDonald's. Once this one falls, the two remaining biggies that need to be tackled (somehow) are real estate agents and health care.

 

[davewill]

Once the car is sold, the dealership's purpose is to deny warranty coverage.

Why would they do THAT? The dealer makes profit from doing warranty repairs and being reimbursed by the manufacturer.

I don't think we need Federal protection for this. The worst that happens is that Tesla closes stores in the couple of states that won't see reason.

 

[Nubo]

Once the car is sold, the dealership's purpose is to deny warranty coverage.

Why would they do THAT? The dealer makes profit from doing warranty repairs and being reimbursed by the manufacturer.

All told, they're often under-compensated for warranty work and are therefore reluctant. The manufacturers know this. It's an sad dynamic.

 

[adric22]

All told, they're often under-compensated for warranty work and are therefore reluctant. The manufacturers know this. It's an sad dynamic.

Absolutely! They are typically not allowed to charge the manufacturer for time spent diagnosing the cars, even if it takes hours or days. They are usually paid half or less of the standard commission for doing warranty labor.