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Excellent find!
Here’s a link to a 2009 paper written by an economist of the Antitrust Division of the US Department of Justice advocating direct sales of cars by manufacturers: http://www.justice.gov/atr/public/eag/246374.htm
These need to be sent to politicians in states having issues. If laws are still passed there is no doubt that they are more interested in their doners contributions than their constituents.
Great find!
The dealer argument makes sense for current dealerships that are set up. All of the time and money invested in a dealership would be lost if the manufacturer could just come in and sell their cars directly. In Tesla's case, there are no dealerships already set up. There are no dealerships that will end up losing money from manufacturer competition. The only thing thing that blocking direct sales would accomplish is the limiting of choice by the consumer.
I would agree with this sentiment however shouldn't this be a contract issue not a legal one? For example if I bought a franchise for any business I would expect that there would be a clause in the contract that would prevent the company from opening competing sites in my geographic area, that would include other franchises as well as company owned stores. If the company wanted to reserve the right to open in the area I would expect that the agreement would include language that would provide for some type of buy out on the capital investment. With that being said as a business man I would have the option to accept the terms the company is offering or not, my choice. This is how business is typically done. Why do car dealerships need special legal protections?
Indeed, residents in states seeking to block Tesla Motors need to e-mail their governors and state legislators. Seriously, this must be done right now.
And today each of us needs to e-mail his/her US senators, US district representative, the US Department of Justice, the Federal Trade Commission and the White House.
A new petition has been posted to the White House website asking the federal government to overrule state laws that require all cars be sold through franchised dealerships. A similar petition was initiated in April but withered long before the goal of 100,000 could be reached.
Link to petition: allow Tesla Motors to sell directly to consumers in all 50 states. | We the People: Your Voice in Our Government
Dealerships make most of their money through parts and service. An electric motor has few parts and requires minimal service. The Tesla service division has been mandated to add no profit to the company. If a problem does arise, a Tesla Ranger brings a free loaner to the owner and returns his car to a Tesla service center. Would a dealer be willing to do this? At no profit?
Dealerships have contracts with manufacturers granting the dealership a protected territory in which the manufacturer and other dealerships cannot sell that manufacturer's cars. There really is no additional need for laws to protect the dealerships' territories. The only reason would be to keep out a new competing brand with alternative methods for sales and service. That's un-American, anti-free enterprise, anti-consumer and contrary to the interstate commerce clause of the United States Constitution. Yet some state legislators bow to contributors of large amounts of money to their election campaigns rather than the desires of their constituents.
Please sign the petition and then write state and federal officials and ask them to overturn laws preventing Tesla from selling and servicing directly to consumers.
i signed it but the problem is that there are not 100,000 users that visit this site. need to somehow advertise this elsewhere too.A new petition has been posted to the White House website asking the federal government to overrule state laws that require all cars be sold through franchised dealerships. A similar petition was initiated in April but withered long before the goal of 100,000 could be reached.
Link to petition: allow Tesla Motors to sell directly to consumers in all 50 states. | We the People: Your Voice in Our Government
Dealerships make most of their money through parts and service. An electric motor has few parts and requires minimal service. The Tesla service division has been mandated to add no profit to the company. If a problem does arise, a Tesla Ranger brings a free loaner to the owner and returns his car to a Tesla service center. Would a dealer be willing to do this? At no profit?
Dealerships have contracts with manufacturers granting the dealership a protected territory in which the manufacturer and other dealerships cannot sell that manufacturer's cars. There really is no additional need for laws to protect the dealerships' territories. The only reason would be to keep out a new competing brand with alternative methods for sales and service. That's un-American, anti-free enterprise, anti-consumer and contrary to the interstate commerce clause of the United States Constitution. Yet some state legislators bow to contributors of large amounts of money to their election campaigns rather than the desires of their constituents.
Please sign the petition and then write state and federal officials and ask them to overturn laws preventing Tesla from selling and servicing directly to consumers.