Louisiana HB167

[ZAKEEUS]

Just got this email from Tesla, didn't even realize this was going down. I already sent an email to my representative, and I'll definitely be calling until I get an answer. We are going to need that service center when the Model 3 comes out, so if you're a Louisiana resident and didn't get the email, contact your representative.

At Tesla, we have a mission to accelerate the world’s transition to sustainable energy and our customers are central to our success. We’re glad that you’ve chosen to drive a Tesla and take an active part in reducing carbon emissions. And to further our progress, we are looking forward to opening a new service center in New Orleans and expanding our operation in Louisiana.

Unfortunately, the Louisiana House of Representatives just passed HB167, which would prevent Tesla from opening this planned service center, as well as any future locations. If HB 167 passes, Tesla owners in Louisiana like you will be prohibited from having their vehicle serviced locally.

This bill, which would kill millions in potential investments in the state, now moves to consideration in the Senate.

Urgent action is needed.

Use our tool to contact your state senator and ask them to oppose HB 167 unless it is amended to allow a manufacturer like Tesla to service vehicles in the state.

http://p2a.co/hZBjtUc

Thank you for your help.

Sincerely,

Your Tesla Louisiana Team

 

[xyeahtony]

i got the same email and signed it. no doubt excessive lobbying from the dealerships here in LA are driving these chicken **** politicians. Sigh.

 

[ZAKEEUS]

I called my state representative, J. Rogers Pope who hung up in my face after I politely asked him what he thought of the bill. Then I called my Senator, Dale Erdey who didn't seem to understand the point of the bill after a few minutes on the phone. I'm shocked that a bill like this could pass in the house with 100% support in a red state even though it's one of those pesky regulations that everybody supposedly hates.

 

[Vamken]

I’m on the Model 3 wait list and received the same email from Tesla today. I read the bill and see it protects franchise dealers from competition on the sale of new cars. But I don’t understand how it limits servicing, or why Tesla’s email focuses on servicing. The bill only mentions restricting those who “sell or offer to sell a new or unused motor vehicle directly to a consumer. . .”

 

[xyeahtony]

I’m on the Model 3 wait list and received the same email from Tesla today. I read the bill and see it protects franchise dealers from competition on the sale of new cars. But I don’t understand how it limits servicing, or why Tesla’s email focuses on servicing. The bill only mentions restricting those who “sell or offer to sell a new or unused motor vehicle directly to a consumer. . .”

Because a service center can be interpreted as a place where Tesla sells vehicles directly to the consumer. Without a NOLA service center, we all have to go to houston for service. And despite ranger and towing services, this is not as ideal or convenient.

 

[Doc Savage]

In any event, we got the email, and we can get our 2c in. The auto dealer lobby is a very powerful one, but somewhere there is or will be a tipping point. I see that the bill has been delayed until 5-22, by the way, so if anyone has not written or called their senator yet, and wants to, there is still time. I place this in the same category as the "I voted, so I can complain" category.

 

[Vamken]

One problem with stopping it is that the bill is being quietly passed without any media coverage. I don’t know who else is even aware of the bill other than car dealers and those who received the email from Tesla.

 

[Doc Savage]

You are right about that. I didn't know anything about it until I got the letter from Tesla, and even at that, the letter said to contact my representative. That bill has already passed the House, and is now under consideration in the Senate.

 

[Nicomaco]

FYI, the text of the e-mail I just sent my state senator, trying to frame it more attractively to a Republican politician:

Senator *****-

As your constituent and a Tesla owner, I urge you to amend or vote no on HB 167.

As it is currently written, this bill would significantly hinder electric vehicle sales and service in our state. Tesla believes in bypassing the dealer middleman, selling and servicing their vehicles directly to the customer. Louisiana State Law does not allow this, requiring all car sales to go through a middleman (car dealer). HB 167 strengthens this position, making it even harder for a car manufacturer like Tesla to even open a service center in Louisiana.

Who does this bill benefit? Does it help the customer or the dealership lobby? A recent U.S. Department of Justice Study “Economic Effects of State Ban on Direct Manufacturer Sales to Car Buyers” found franchises (middlemen) increase the cost to purchase a vehicle by average of 6% on every transaction.

How does this 6% "dealership tax" help the customer? Perhaps it's "that the dealership model protects consumers by ensuring competition and preventing a Tesla monopoly on sales and service of their cars." The Federal Trade Commission disagrees, and took the unusual step to publish a statement in support of direct auto sales and service: Direct-to-consumer auto sales: It’s not just about Tesla | Federal Trade Commission

I believe it should be left open to the free market to determine if the dealership lobby's opinions are correct. Let Tesla sell and service directly to consumers. If consumers don't like the price or the service they are getting from Tesla, they have many other options that car dealers would love to sell them. Groups as diverse as the Koch Brothers and the Sierra Club have gone on record supporting this approach (http://www.autonews.com/article/201...ch-brothers-sierra-club-in-fight-with-dealers).

I know electric vehicles can be a politically polarizing topic. Don't think of this bill as an anti-Tesla bill, but instead as an anti-competition bill. And we can’t afford to pass anti-competitive legislation like this in Louisiana.

Thank you for amending or voting NO on HB 167.

 

[Doc Savage]

Well stated, Nicomaco. I didn't frame my email as eloquently, but I did adapt it to be more palatable to any eyes that read it.

 

[Lasttoy]

Texas and North Carolina forbid tesla in their states, I think DC did it
All LA residents better call
Google it

 

[ZAKEEUS]

I spoke with my senator yesterday and there is supposedly an amendment that will be in Tesla's favor in the works.

 

[CHGolferJim]

Texas and North Carolina forbid tesla in their states, I think DC did it
All LA residents better call
Google it

Not sure what you mean by the comment about NC. We have sales and service in Raleigh (2 locations 2 blocks apart), soon 6+ Superchargers, and some kind of location in Charlotte. A Raleigh rep told me last week there are 2,000 cars in the Triangle area, and an office expansion in the works.

 

[ZAKEEUS]

And we lost.

Last week, we informed you of a bill that moved through the Louisiana legislature to block automobile manufacturers like Tesla from directly selling cars in the state. Unfortunately, the special interests that were pushing this bill to block Tesla from doing business in the state managed to insert it as an amendment to another bill, which was passed.

This bill, SB 107, is now on Governor Edwards’ desk, and we only have four days to make sure he vetoes this damaging legislation.

 

[xyeahtony]

And we lost.

Last week, we informed you of a bill that moved through the Louisiana legislature to block automobile manufacturers like Tesla from directly selling cars in the state. Unfortunately, the special interests that were pushing this bill to block Tesla from doing business in the state managed to insert it as an amendment to another bill, which was passed.

This bill, SB 107, is now on Governor Edwards’ desk, and we only have four days to make sure he vetoes this damaging legislation.

Why are we surprised sadly, i bet you Price Leblanc and all them are really throwing money to make sure their business stays relevant.

 

[Doc Savage]

I read in the paper this morning that the Governor of Louisiana did sign what started as HB167, which transmuted into SB107. In the article, it said that he had signed it "at the urging of the Louisiana Auto Dealers Association". It was disappointing to read of this, although I'm sure that most of us anticipated the outcome. The LADA has a strong lobby, and, though they proclaim that they do not worry about upstarts such as Tesla, I notice that they continue to lobby strongly against measures that would make it easier to buy from and deal with the upstarts. Methinks that they protest too loudly, to coin a phrase.....

 

[ZAKEEUS]

We are gonna need a lot more rangers

 

[xyeahtony]

We are gonna need a lot more rangers

Seriously. called about 6 weeks ago about getting my 60 rebadged to 75, no response. Might just have to suck it up and do it in Houston next time im there.

 

[bushburner]

Seriously. called about 6 weeks ago about getting my 60 rebadged to 75, no response. Might just have to suck it up and do it in Houston next time im there.

Just debadge it, looks cleaner. It would be nice with a service center in New Orleans, but I have had nothing but exceptional service from the rangers. But I can see how it is an inconvenience for you guys farther away. Btw I sent an email to my representative, guess it didn't work.