From Electrek: Dealership association declares being ‘under attack’ by Tesla in a...

Discussion in 'News from Electrek.co' started by RSSFeed, Nov 28, 2016.

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  1. RSSFeed

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    Dealership association declares being ‘under attack’ by Tesla in a ridiculous wartime-like video

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    For most of the world, it’s simply difficult to imagine that in some states in the US, Tesla is not allowed to sell its vehicles directly to customers because of laws banning automakers from operating dealerships – even automakers that have never been part of the third-party franchise dealership model before.

    But I think this video of Don Hall, president of the Virginia Automobile Dealers Association (VADA), will help people understand what Tesla is up against in those states. A video of Hall addressing the members of his dealership association following Tesla’s request for a dealership license is a great example of the mentality of the car dealership when it comes to their monopoly on selling vehicles. more…

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  2. TrevP

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    The dealership associations seem to think that Tesla is out to destroy the franchise system. They're not. They only want some concessions to allow them, a newcomer WITHOUT existing franchisees, to sell direct. It's not hurting any of the franchised dealers one bit because none of them can sell Teslas. In states and other countries (Canada for example) there's not one bit of evidence that tesla has hurt other dealers in the same market where they sell cars. The dealer associations are just using a just law for an unjust purpose. They're also mad because they can't get a piece of the pie and there'a also pressure from GM from above.
     
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  3. Dan Detweiler

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    If one car manufacturer chooses to use a franchise based sales system (everyone else)...for good reason at the time it was initially established by the way, and another chooses to use a different sales model...aka direct sales, I don't understand how that is being unfair. GM, and the rest are free to change their sales model if they choose. They have chosen to placate to the dealers unions and lobbyists and so, have dug their own graves. I don't see how that is Tesla's fault.

    Dan
     
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  4. garsh

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    Actually, they're not, precisely because of these laws.

    Here's one example.
    "A manufacturer operating in Colorado seeking to cull a brand or four or trim a dealer or 50 must either fork-out a fortune to terminate a franchise, slowly starve the dealers to death, convince Uncle Sam to write a law over-riding the state’s franchise regulations or file Chapter 11. Which would eliminate ALL this fancy footwork at a single stroke. Guess which one makes most sense?"
     
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  5. Dan Detweiler

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    My point is that they put themselves into this noose. Blaming or punishing someone else for not making the same mistake seems disingenuous and self serving at least...illegal at worst as a violation of laws regarding monopolies.

    Dan
     
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  6. garsh

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    They didn't really put themselves in this situation. Back before dealerships existed, cars were bought via mail-order & shipped directly to buyers. Somebody saw an opportunity, bought a bunch of cars, and resold them to people. Now, people could have a "test-drive" before committing to a purchase, and sales started taking off.

    There have been attempts by both GM and Ford to run their own dealerships, but the franchise laws were already too well-entrenched for them to make headway. If they try an "experiment" without dealership approval, the dealerships will "collude" to make the manufacturer suffer, and they have laws on their side. I think at this point they would love to get rid of the franchises, but existing laws make this all but impossible. So, they play nice and support the status quo so that their dealerships don't turn on them.
     
  7. Dan Detweiler

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    I guess I am blind but how does this type of behavior not fall under anti-trust legislation?

    Dan
     
  8. BigBri

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    I think one of the best things about Tesla is the sales model. I've hated every single interaction I've needed to have with a dealership. Either it's over the top friendly to the point of being super fake or it's having 0 interest in helping you at all. When I bought my current car the lady we bought from went from fake nice to not caring much at all right after I told her we'd pay cash instead of finance.
     
  9. Badback

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    Tesla is not attacking dealerships, we are.
     
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