I had a minor issue shortly after taking delivery, and they sent a Ranger to my home. Ended up he lives right in Grand Rapids. Super guy!
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Michigan Tesla Stores and Service Centers
- Thread starter physicsfita
- Start date
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- Tags
- Midwest & Great Lakes USA
I thought I would bump the thread -- the Tesla website still shows a Detroit service center as "coming soon". (We just passed the second anniversary of that status.) Given the smackdown the legislature gave Tesla regarding building service centers last year, I would have thought they would have either taken the site off the map, or they would have put in some link about their efforts to get the law changed. Is it possible that they are quietly cutting a deal for some sort of carve-out from the dealership law like they did in Ohio, and that's why they're not changing the website status? Has anyone heard anything about any recent efforts to get in to Detroit?
MichFin
Member
I'm glad to see the service center is coming but buying the car was easier than in Ohio. I ordered it and the made a delivery appointment to my house. The car came in a covered carrier and the delivery guy spent 30-45 minutes going over all the features and controls. He also told me that for service most of the time they come your house and fix it in your driveway. It's only been a week but I'm LOVING my new 85D.
Novi, MI
Novi, MI
As much as Tesla would protest about this now, I foresee that eventually they are going to have some franchise dealers, especially when a high volume (Model 3) appears. I know they are afraid that today's dealers would not give EVs a fair representation, that will change once there is a large public demand.
Mercedes-Benz had a problem at one time, where dealers handling multiple brands didn't give the Mercedes a fair shake. At that time, Mercedes started a rule that any Mercedes dealership had to be a separate Mercedes-only business, i.e., not mixed in with Buick, Lincoln, etc., as used to be the case. At the time, there was some concern that the Mercedes M-Class (new at that time) would not be sold in Alabama (state where it is built) because there were no exclusive Mercedes dealers. However, the dealers got with the program and built them.
There is the question of what kind of economic incentive there is for a businessperson to invest in a Tesla dealership if their business model is to make much of their profit from service- and Teslas require minimal service. It's just a question of structuring the deal right...moreover, as Tesla vehicles age, there will still be things for the dealer to fix, no matter how well the car is built. Think about a 12 year old Model S - well cared for and still beautiful - it may need brakes, even a new master cylinder; air suspensions require all kinds of repairs; the coolant for the 85kwh battery has to be changed at least every 10 years, I expect, as does brake fluid; bearings wear our, springs break, window regulators and power locks break, as do seat adjustment motors, etc etc. It is not immortal, it is a machine. So eventually (it could be 10 years), Tesla dealers may be coming to your neighborhood. Tesla can blunt some of the agony of customers working with dealers by setting non-negotiable prices (like Saturn did), and still comply with franchise laws (not that I think these laws are needed, but they exist).
Pilot_51
Member
Franchised stores, for sure, but not dealers. The point has been made that haggling on the price of a new car is ridiculous, especially by today's standards, and Tesla doesn't want to be involved in that. As I see it, Tesla would sell cars to the stores at the wholesale price and the stores would sell at the same price as Tesla's direct price, like any other retailer. The cost overhead of the stores is built into the price of the car, no matter who sells it, as well as a profit margin that Tesla would certainly have to share with the franchise. The stores would want additional profit, which they can achieve by offering other paid products or services, like many other retailers. Tesla may not allow service to be a profit center for the business, but it could be very lucrative for the technicians through labor fees, which I believe is something Tesla does themselves.
Considering that they sell all the cars they make, and that the bottleneck is in how quickly they can make them, not in demand, it becomes a waiting game: Sales of the Model S are growing 50% per year, and the Model 3 will be even more popular. Why should Tesla consent to the demands of the dealers? I think the majority of the people in MI will get impatient with the laws being written to accommodate the dealers at the people's expense and will force a change in the law. Time is on Tesla's side. They can wait.
Jim MacInnes
Member
It is certainly easy to buy a Tesla on line and have it delivered to your house. I visited a couple of tesla stores during my travels to California and had a test drive in Windsor, ON. It was all very easy.
How do you think that multi-marque dealers originated, there only being single-maker dealers up to that time? The same litigation will stymie attempts by Tesla to enter into any sort of franchising deals whatsoever. A very slippery slope once that crucial first step is taken in that direction.
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MichFin
Member
I see no reason for "independent" dealers to exist anymore. Just adding one layer of profit taking and not adding much value.
I believe the future will have Tesla owned "dealerships/stores" where people can go and test drive the cars and get them serviced.
I believe the future will have Tesla owned "dealerships/stores" where people can go and test drive the cars and get them serviced.
This may be true, but that doesn't mean that the franchise laws in many US states will change. Manufacturer-owned dealerships are illegal in most states, and the dealer lobby is often powerful. Tesla's current (very cool) practice of coming to you to fix your car can be done for a boutique, low-volume car; I just don't see how this can be scaled to handle the number of vehicles that will be out there once Tesla ramps up to 300,000 + annual volume (assuming the company plans to be profitable). Maybe something needs to be done at the federal level.
SteelGrey
Member
Tesla has opened a small gallery in the Nordstrom's at Somerset Mall!
Tesla can't sell in Michigan — but just opened at Somerset
Tesla can't sell in Michigan — but just opened at Somerset
Bheuring
Member
They should have a service center in Toledo or a suburb close to it
It could cover Michigan for now
It could cover Michigan for now
Ohio is currently limited to only 3 locations per the compromise they reached with state legislators, but I have received indications they may pursue this if they are unsuccessful in their legislative and lawsuit attempts in Michigan.
Bheuring
Member
I had no idea that they needed legislation to open up a service store The sad thing is it would still probably be easier to go through legislation in Ohio then it would be Michigan
jgs
Active Member
That was part of the "clarification" snuck through the legislature in 2014. Thanks, legislature.
SteelGrey
Member
Dropped by the Somerset gallery store last night. Was staffed with 3 people, all Michigan-based and relatively new to Tesla. All very nice, enthusiastic and knowledgeable about the brand.
The gallery is located on the first floor of Nordstrom. If you enter Nordstrom from the mall, turn left as you walk in and you will see it.
No test drives for now, no Tesla gear, no ability to accept credit cards or cash at all. They do not want the appearance of "selling" anything. Even the Model X on display has a sticker indicating that "this car is not for sale." Interested parties are referred to Cleveland for sales follow up.
No available HPWC at this time; no owner events are planned although they thought it was a good idea to do something eventually. Right now they're focused on getting the gallery up and running.
There was steady stream of guests last evening; many asking about performance. Some familiar with Tesla others with no idea. The Model X had the falcon wing doors extended "permanently" while in display mode; it definitely drew attention. The rest of the display area consists of the design studio with samples of material and colors, and a workstation where 3 or so guests could plug in their own laptop.
The gallery is located on the first floor of Nordstrom. If you enter Nordstrom from the mall, turn left as you walk in and you will see it.
No test drives for now, no Tesla gear, no ability to accept credit cards or cash at all. They do not want the appearance of "selling" anything. Even the Model X on display has a sticker indicating that "this car is not for sale." Interested parties are referred to Cleveland for sales follow up.
No available HPWC at this time; no owner events are planned although they thought it was a good idea to do something eventually. Right now they're focused on getting the gallery up and running.
There was steady stream of guests last evening; many asking about performance. Some familiar with Tesla others with no idea. The Model X had the falcon wing doors extended "permanently" while in display mode; it definitely drew attention. The rest of the display area consists of the design studio with samples of material and colors, and a workstation where 3 or so guests could plug in their own laptop.
Pilot_51
Member
I haven't visited the showroom yet, but want to do so soon, ideally with some friends and/or family. If there's an event, you can expect me there. I don't work in Troy any more, so it's not quite as convenient as it would have been, but 30 minutes from home isn't bad at all. Far better than the 4 hours to Cleveland, which I also haven't visited, though my car did five times.
That might be a clever legal workaround for ordering. People bring their laptop, ask questions about the car, and use their laptop to place the order online without assistance from an employee or using a Tesla-owned device. Not ideal by any means, but that's probably as close to ordering in a store as you can get as the law stands. It may also highlight the problems with the law when people ask for help ordering and the employees say it is illegal for them to help.
StapleGun
Member
I went to the showroom in Nordstrom's today and talked to the staff. They were both very nice and enthusiastic. The woman there told me that they have started building the service center in Detroit "very close to Campus Martius". She also just started working for Tesla last week when it opened though, so take that with a grain of salt.
It would be interesting if Tesla is getting more aggressive with showrooms and service centers in Michigan in an effort to prod the state into a high-profile legal battle.
It would be interesting if Tesla is getting more aggressive with showrooms and service centers in Michigan in an effort to prod the state into a high-profile legal battle.
I stopped by today, as well. One of the reps mentioned that a Detroit service center was "coming soon". When I pressed them on how they knew, they said it was based on the Tesla website. They were surprised when I told them that Detroit has been "coming soon" on the website for years -- I'd probably back up a salt truck to any news about a Detroit service center.
That said, another rep seem quite convinced that wheels were being set in motion to bring a service center to Toledo. I suspect that information would require a much smaller amount of salt.
I was also told that Tesla's legal people were trying to work out a way to do test drives -- that would line up with the aggressive strategy you suggest.
