MADA - MN Dealers attempting to block Tesla Motors

[Norbert]

At this point (processing Tesla's application), it seems that if dealers sue, the result would be just a further clarification of Tesla's legal position. At least in Minnesota. It also doesn't look like it would help them in PR terms. What's the situation in Utah?

 

[MikeL]

Don't know what inroads Tesla is making here. Do know that several of the major, established car dealers are wealthy and powerful (locally, at least, just like a lot of other markets, I suppose). I am assuming that they won't appreciate Tesla's "approach". Free market capitalism? Business unfettered by Gov't? You'd think so in the reddest red state. Maybe TMs legal position strengthens w each victory, like you say. I'll look into it a little deeper here, staying optimistic. ML

 

[brianman]

This is a superbly stupid quote that plays directly into Tesla's hand:

In other words: "We all understand that dealers add needless costs in bringing cars to market, lining the pockets of dealers, and we think Tesla should line our pockets, too."

About as inspired as:
"Smart people should have to pay a tax for not being as dumb as us."

 

[hcsharp]

About as inspired as:
"Smart people should have to pay a tax for not being as dumb as us."

A lot of business models have changed in recent years to eliminate independent retailers from the sales process. Travel agents are one example. I wonder if selling cars through dealers is still efficient? Tesla may be breaking new ground here that other manufacturers could start following - selling cars direct in order to be more competitive. I imagine it would take a long time for dealers to become obsolete; they're not quite the same as travel agents, but I won't be surprised to see some of Tesla's sales ideas copied.

 

[Beckler]

I imagine it would take a long time for dealers to become obsolete; ...

They already are in my opinion, for me anyway. I don't need clowns in cheap suits making stuff up about products, lying about prices and fees, and using standard sales-deception techniques. I can make my own choices. This goes for retail sales of all types. It would be useful however if there were product experts at your disposal for answering questions.

 

[Robert.Boston]

Someone who is better at this than me should keep a tally of which states' dealer associations have sued & lost -check 'em off as we go. Unfortunately, I believe this trend will continue, maybe getting worse as Tesla progresses. NY & Massachusetts. Now MN, any others? ML

We're not done yet in MA. There is still (a) an appeal pending of the district judge's ruling, (b) a suit against the Natick selectmen and (c) a new bill in the legislature. Since (c) would be helpful to Tesla, if passed, I'm concerned that it could get subverted by the MSADA and literally flipped to ban manufacturer-affiliated dealerships under all circumstances.

The more successful Tesla becomes, the harder these fights are going to be. The incumbent dealers are not going to go gentle into that good night.

 

[art]

About as inspired as:
"Smart people should have to pay a tax for not being as dumb as us."

its statments like that that started the french revolution.

 

[NigelM]

This is a superbly stupid quote that plays directly into Tesla's hand:

“We think everybody should play by the same rules,”said Scott Lambert, executive vice president of the Minnesota Automobile Dealers Association in St. Paul. “Tesla is trying to sell cars on the cheap, and it’s just not fair because they don’t have the cost of running a dealership.”

In other words: "We all understand that dealers add needless costs in bringing cars to market, lining the pockets of dealers, and we think Tesla should line our pockets, too."

Communism over capitalism?

 

[bonnie]

I like the fact that the dealer organization finds the Model S to be such a good value for the price (ie, 'selling cars on the cheap'). Tesla should quote them in an ad.

 

[neroden]

I like the fact that the dealer organization finds the Model S to be such a good value for the price (ie, 'selling cars on the cheap'). Tesla should quote them in an ad.

Indeed, that was a quote which the dealers should never, ever have made.

 

[qwk]

Indeed, that was a quote which the dealers should never, ever have made.

Very desperate words.