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GM continues to try to stifle competition

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GM must be really scared of the Model 3 if they are resorting to these tactics again to protect their own product in the pipeline.

Is it known who will be attending that February 25th meeting, and if there is anything we can do to get more attention to this issue?
 
I would expect this as the tip of the spear. If I were running a competitive strategy against Tesla, I would work to jam up the Model 3 launch as this is where the company is most vulnerable. Creating a multi-state FUD strategy around questions about whether you can get your Tesla serviced in a timely manner is a great tactic. Even if Tesla owners ultimately prevail in IN, it successfully introduces doubt not only in IN buyers but in neighboring states. Its no coincidence you see a legislative push at the same time you hear about the Koch Brothers campaign.

I would expect more of this type of diffuse, astroturfing (i.e. fake grass roots efforts):
http://www.bloomberg.com/bw/article...s-playbook-against-californias-climate-law#p1
http://www.nrdc.org/energy/files/oil-industry-undermining-california-clean-energy-IB.pdf
And this gem: California Gas Restriction Act of 2015 - YouTube

The one thing we can do is stay vigilant and be active when this kind of things happens--enough public defeats and the narrative will start to go the other way.
 
General Motors: “We believe strongly in the dealer model and the tremendous value our customers derive from neighborhood dealerships. Unlike some electric car customers, Bolt EV customers never have to worry about driving to another state to buy, service or support their vehicle.”

Tesla Motors: “Commitments from traditional car makers to build electric vehicles advance Tesla’s mission to accelerate the advent of sustainable transportation. We hope to see all those additional zero-emission vehicles on the road."

Source: GM CEO Mary Barra: Chevy Bolt EV is Built for Everyone - Fortune
 
ba-dum-bum-CHING

Bolt EV customers can't drive to another state with an inadequate charging network. "ba-dum-bum-CHING"

General Motors: “We believe strongly in the dealer model and the tremendous value our customers derive from neighborhood dealerships. Unlike some electric car customers, Bolt EV customers never have to worry about driving to another state to buy, service or support their vehicle.”

Tesla Motors: “Commitments from traditional car makers to build electric vehicles advance Tesla’s mission to accelerate the advent of sustainable transportation. We hope to see all those additional zero-emission vehicles on the road."

Source: GM CEO Mary Barra: Chevy Bolt EV is Built for Everyone - Fortune
 
I talked with a state rep about the current status of the bill. They said the House Committee on Roads and Transportation amended the bill. The bill no longer changes Indiana code; instead it reads as a recommendation from the General Assembly to legislative council to assign a study committee topic of motor vehicle dealer and manufacturer licenses. The committee would study the topic and make a recommendation for the 2017 session.

However, the Senate Committee on Commerce and Technology could easily amend the bill back to the original house version and send it to the full Senate for a vote. If that reverted version were to pass the full Senate, it would go to the Governor's desk for a signature. This is the worst case scenario. It is much easier to defeat pending legislation than it is to reverse recently passed legislation. In fact, the latter is nearly impossible.

Scenario A
We contact our Senators, and they vote against the study committee bill. The effort dies. This is the best outcome, but it is unlikely.

Scenario B
The Senate Committee passes the study committee, and we have 10 months to mobilize against the original intent of HB 1254. This is a likely scenario.

Scenario C
The Senate Committee reverts to the original bill and sends it to the full Senate. We would have to mobilize quickly to sway Senators to vote against it. Considering the house approved it 92-3, this is an uphill battle in such a short period of time. I doubt we'd have much more luck pushing a veto by the Governor, either. Unfortunately, this is also a likely scenario.

Regardless, it is important to take action now. Contact your State Senator and urge them to vote against any bill like the original HB 1254 that hurts the Indiana economy and restricts consumer choice. You might also urge against the study committee, painting it as a waste of the study committee's time and taxpayer dollars.

Find your State Senator here: Find your Legislator - Indiana General Assembly, 2016 Session
 
The original bill had an exemption for Tesla. It looks like Thursday's amendment will eliminate all direct sales, with no exemptions.

Link to live video of the Thursday 9 am. EST (6 am PST) hearing in the regional thread here:

Indiana - HB1254 to Shut Tesla out of the state! - Page 2

The agenda says they will hear comments in favor of the bill, amend it, and then vote. Locals can attend, and should come and support Tesla if they can.

GSP
 
I watched the video of the hearing that was held on February 18th. It was encouraging to see the Tesla owners who showed up to testify. However, it was discouraging to hear the comments and questions from members of the committee. I'm afraid they just don't understand that Tesla cannot and will not change their business model to use franchised dealers. I understand now why Tesla is calling on their customers to help defeat this bill. Their ability to sell in Indiana hangs in the balance and could be decided in the next few days or weeks.
 
I just sent this to all the senators in the original post. I don't live in Indiana or even in the USA, but I find this whole thing offensive and baffling.
Senators,

Amendment 3 to Bill HB1254 is a thinly-veiled attempt by automakers and their franchised dealers to protect their business and avoid competition by outlawing business innovation. They are worried that Tesla and other new manufacturers (domestic and foreign) will take more market share from them and they feel that it's easier to outlaw their business model than to make better products and do the things that make customers happy.

Franchise laws exist to prevent manufacturers from competing directly with their dealers and to create an orderly arrangement of sales territories for dealers, not to create a protected business environment where these companies don't need to innovate or produce better products in order to attract and retain customers.

Tesla is outselling all other brands in its market segment and has been recognized by numerous organizations for producing the best car ever and having the best service of any car company. Some of you have said the franchise laws are there to protect the consumer, but Tesla's customers are happier with the product, happier with the sales process and happier with the service than any other car customers. These are innovations that car buyers clearly want.

Many of you asked Tesla why they wouldn't just set up a franchised dealership. The answer is:

  1. No independent dealer would be interested because there's no money in it for them. As the Tesla representative explained, Tesla's volumes are low and it takes more sales rep time to sell an electric car because it's new technology, so a traditional dealer would not be motivated to sell electric cars rather than gas cars. I have seen this first hand when I went to a Chevy dealer specifically to see a plug-in hybrid Volt but the salesman spent the whole time trying to convince me not to buy it.
  2. Dealers make most of their money on service but electric cars don't require as much service, so they threaten the dealers' business.
  3. Dealers don't know enough about electric cars to sell them effectively and they aren't motivated to learn, given their protected position in the market.
Passing this bill as amended will send the message that Indiana is against innovation, against competition, against free markets and against letting businesses decide for themselves how to operate.
It is completely baffling to people around the world that the franchised dealer system means that it's easier to buy a Tesla in Canada, in Europe, in Australia or in China than it is in the USA where it's made.

Please don't be fooled - vote against this amendment.
I signed it as "Tesla owner and believer in free markets".
Who knows if they'll pay any attention, but it can't hurt.
 
I would expect this as the tip of the spear. If I were running a competitive strategy against Tesla, I would work to jam up the Model 3 launch as this is where the company is most vulnerable. Creating a multi-state FUD strategy around questions about whether you can get your Tesla serviced in a timely manner is a great tactic. Even if Tesla owners ultimately prevail in IN, it successfully introduces doubt not only in IN buyers but in neighboring states. Its no coincidence you see a legislative push at the same time you hear about the Koch Brothers campaign.

I would expect more of this type of diffuse, astroturfing (i.e. fake grass roots efforts):
http://www.bloomberg.com/bw/article...s-playbook-against-californias-climate-law#p1
http://www.nrdc.org/energy/files/oil-industry-undermining-california-clean-energy-IB.pdf
And this gem: California Gas Restriction Act of 2015 - YouTube

The one thing we can do is stay vigilant and be active when this kind of things happens--enough public defeats and the narrative will start to go the other way.

True dat. The sliminess (see potential committee end run) is just astounding, yet so often effective. A matrix (as a sticky post) with activity in each of the 50 states could be useful, with monitoring and updates from interested and/or designated parties. There are more owners and fans every week. Grass, meet roots.

The light of day and accountability will go a long way toward mitigating the malaise promulgated by these cockroaches. Busy little critters who work diligently in the shadows, if you prefer a less provocative term than lobbyist. I mean, cockroach.
 
Here is another one in Utah: Tesla suing over Utah sales, says new bill has unfair limits | KSL.com

Although, to be honest, Tesla's pushback on the the compromise proposal (which does not allow Tesla to keep inventory on site) is interesting. As the company has a BTO model, it would not seem like much of an issue, unless they are wanting to keep CPO inventory, or, perhaps the Model 3 will move away from the pure BTO model, which kinda makes sense.
 
Enough is enough...

I'm so stealing this. :)

Steal away. I've been pretty loyal to the big 2, having purchased a Ford Fusion Energi and about a year ago leasing a Spark EV, but this is just getting ridiculous. The tip of the iceberg though was no support of infrastructure for the Bolt, which I would have benefited from with the Spark EV. Also some of the moves these companies have been making. Baby steps if you will.

There's a $1,000 check waiting for a home.
 
True dat. The sliminess (see potential committee end run) is just astounding, yet so often effective. A matrix (as a sticky post) with activity in each of the 50 states could be useful, with monitoring and updates from interested and/or designated parties. There are more owners and fans every week. Grass, meet roots.

The light of day and accountability will go a long way toward mitigating the malaise promulgated by these cockroaches. Busy little critters who work diligently in the shadows, if you prefer a less provocative term than lobbyist. I mean, cockroach.

Up next (I just want to get through Indiana first), with short summaries below. If any of these get you personally riled up, please start a thread similar to this one. I'll help. Otherwise I'll get on it later this week.:

Utah – while well-meaning, the legislators are introducing a bill that restricts Tesla unnecessarily. Tesla's view appears to be that existing law allows them to operate and that the regulatory agency got it wrong. Tesla is currently before the Utah Supreme Court re their license. Independent dealers were embarrassed when a small, Utah based autocycle company was barred from the Utah Auto Show after having paid fees and had their application to appear approved. The press went to town on the dealers and also raised the Tesla issue. Legislators are feeling the heat. Unfortunately, the bill fix is not only less-than-perfect, it restricts Tesla to online sales only and prohibits any inventory. It’s not a workable solution if Tesla is to open shop and grow. GM and the dealers are behind the restrictions and have been direct parties to the “negotiations.” So much for Utah’s free market and support of innovation themes!

Michigan – Tesla currently cannot even have a service facility there, much less sales. Rep. Aaron Miller has introduced a bill to open Michigan up to ALL manufacturers (those using dealers have a geographic restriction to protect existing dealers from unfair competition). This has gone over to the House Commerce Committee, which is chaired by Joe Graves, a former GM engineer (32 years with GM). He appears to have been pretty fair so far in giving Tesla the time to reach other committee members. As always, outreach to the Committee members is always helpful. GM can’t claim this is an uneven playing field as this bill would apply to all manufacturers, not just Tesla. But you know GM will fight hard here - it's their front yard.

Connecticut – Tesla is fighting to open this state up as well with a bill that is supported by the Senate Majority leader Bob Duff. Chairman Tony Guerrero and VC Carlo Leone seem to be supportive, but it's definitely not a done deal. The Connecticut Auto Dealers Association and GM are fighting full force on this one.

Massachusetts – without any warning and in contravention to the ZEV Commission’s voted recommendation, MA will impose a cap on MOR-EV state incentives on purchasers of a qualified alternative fueled vehicle. Rebates for cars costing more than $60,000 MSRP will be capped to $1,000 (versus $2,500). When reviewed by the ZEV Commission – an advisory panel established by the legislature consisting of stakeholders including dealers, manufacturers, environmentalists, and public interest groups, the Commission voted to study the issue more and whether an income means test was a better way to go. If the public policy goal is to not grant millionaires tax breaks, then an income means test is a better way to go versus a straight MSRP cap. A straight cap hurts those stretching to afford the only long-range EVs available today that can totally supplant a gas-powered vehicle (e.g., Tesla Model S and X). Millionaires still get to benefit from the MOR EV program, as they can simply by a BMW i3 or Nissan Leaf and still get the rebate. This only hurts Tesla and the adoption of long-range EVs – especially when independent study shows that 70% of Tesla buyers have never before purchased a car more than $60,000 ever. Pressure on the Governor’s office and the Secretary of Energy and Environmental Affairs is needed here.

Ontario – similar to MA, Ontario is instituting an MSRP cap on cars over $75,000 CDN. Cars at that level are only allowed a $3,000 rebate versus a possible $14,000 otherwise. Cars over $150,000 CDN receive zero rebate. Again, an income means test is the smarter way to go if this is really about not subsidizing high income buyers. The Minister of Economic Development and the Minister of Environment are leaning towards us. The Minister of Transportation is pushing back. Owners can also pressure Premiere’s office as well.

- - - Updated - - -

@tao - good idea on the matrix. I'll ask doug for a wiki where we can link all this stuff together. Then people can choose to fight in an individual state, but we won't lose track of the big slimy picture. Give me a couple hours, just have a couple things I need to get done here first.