New Blog: The Tesla Approach to Distributing and Servicing Cars

[ElSupreme]

It's a myth that Americans like to tell themselves. We're every bit as "free" up here in Canada, if not more so.

Too bad you're slaves to the cold! :tongue:

 

[Thumper]

It is a dangerous game the dealers are playing. If they press a law suit, it could end up in a decision that would invalidate the body of protective laws they have spent decades fostering. They should probably just enjoy the advantages they enjoy and let Tesla alone. They probably won't though.

 

[dsm363]

It is a dangerous game the dealers are playing. If they press a law suit, it could end up in a decision that would invalidate the body of protective laws they have spent decades fostering. They should probably just enjoy the advantages they enjoy and let Tesla alone. They probably won't though.

Excellent point. They could crush it or if they are unlucky, open up a world of hurt on themselves.

 

[gg_got_a_tesla]

Only concern is that NADA has deep pockets and could bankroll lawsuits from individual state dealerships/associations. A protracted legal battle could be costly for Tesla's bottomline.

 

[brianman]

What's a "Gallerie"?

Firstly, as someone else noted "gallery" is the singular.

Secondly, if you think of the Model S as art then the "art gallery" terminology works.

 

[dsm363]

Only concern is that NADA has deep pockets and could bankroll lawsuits from individual state dealerships/associations. A protracted legal battle could be costly for Tesla's bottomline.

Good point. I wonder if secretly the automakers might back Tesla in this since they'd love to be able to offer something similar and cut out the middle-man they are stuck with.

 

[rogbmw]

This is funny. I learned something about USA reading about these issues. I thought USA was the home of the free and brave, and a capitalist society. These laws that prohibits companies to sell their own products is something you expect to find in Poland in the dark ages, or in Sweden 40 years ago.

Fredrik - something you have to realize about most Americans is that they have no concept of purchasing a car like Europeans to. Having lived in Europe for 5 years, I came to realize that Europeans understand the concept that one orders the car they want, have it built to order, then pick it up when it is delivered to the dealership - and this time may be several months or longer between ordering it and getting the car. Here in the US, most people want instant gratification - thus big dealerships with lots of cars. Most new car dealerships in Europe only have a few new cars in stock, and most people order. Personally, I have ordered every new car I have ever purchased.

 

[Zextraterrestrial]

Fredrik - something you have to realize about most Americans is that they have no concept of purchasing a car like Europeans to. Having lived in Europe for 5 years, I came to realize that Europeans understand the concept that one orders the car they want, have it built to order, then pick it up when it is delivered to the dealership - and this time may be several months or longer between ordering it and getting the car. Here in the US, most people want instant gratification - thus big dealerships with lots of cars. Most new car dealerships in Europe only have a few new cars in stock, and most people order. Personally, I have ordered every new car I have ever purchased.

And a big reason why America sucks!! instant gratification
and a big reason I have no Cell phone! ;P

you can't find me If I don't want you to....until the S, I guess then Tesla will know where I may be close to

I really like Tesla's approach. I could wait for years (oh, wait, I did)
a few months will be no biggy when the backlog is built
Would you rather wait 2 minutes for the crappiest 'food' (chemicals?) you can get, or an hour for orgasmicly good food

 

[dsm363]

I don't think I will ever buy a car off of the lot again. Jetta was the last one and I just sold that. I hope Tesla will win out or a national law will supersede state law.

 

[nustada]

Only concern is that NADA has deep pockets and could bankroll lawsuits from individual state dealerships/associations. A protracted legal battle could be costly for Tesla's bottomline.

That is why Tesla needs to counter sue for damages ASAP, if possible. I am no lawyer, but there must be some way to punish this type of harassment\blackmail.

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Good point. I wonder if secretly the automakers might back Tesla in this since they'd love to be able to offer something similar and cut out the middle-man they are stuck with.

I don't think so, since factory customization isn't very common for the big companies. I think they prefer to have uniform production lines and outsource customer relations\customizations. Its like choosing 1% of a $billion over 10% of $million.

 

[Zzzz...]

That is why Tesla needs to counter sue for damages ASAP, if possible. I am no lawyer, but there must be some way to punish this type of harassment\blackmail.

At this moment most of population never heard of Tesla Motors. The more coverage press will give to those lawsuits, the better brand awareness Tesla will get. While such press would not lead directly to immediate sales, it would make people encountering Tesla to remember that they already heard of company before and thus increasing chances of going forward with the purchase.

Besides, dealers fearing Tesla expansion is generally a good thing for Tesla image...

 

[Fredrik S]

Fredrik - something you have to realize about most Americans is that they have no concept of purchasing a car like Europeans to. Having lived in Europe for 5 years, I came to realize that Europeans understand the concept that one orders the car they want, have it built to order, then pick it up when it is delivered to the dealership - and this time may be several months or longer between ordering it and getting the car. Here in the US, most people want instant gratification - thus big dealerships with lots of cars. Most new car dealerships in Europe only have a few new cars in stock, and most people order. Personally, I have ordered every new car I have ever purchased.

Well I´m all for instant gratification, even though that might be the reason why I can't afford a Model S :smile:
But what's interesting is how dealers stops competition by having laws prohibiting car makers to sell their own product. And how they call it a scam when Tesla tries to explain that they are not selling cars, like "oh yes, you are selling cars in your stores, and you have no right to that." Why on earth do Tesla have to defend themselves by promising that they are not selling anything in their stores.
That is not what capitalism is about. That is some medieval guild system, or something you read in newspapers in Italy regarding the Mafia and their methods. And this makes me laugh. How on earth did you end up here?

 

[dsm363]

Well I´m all for instant gratification, even though that might be the reason why I can't afford a Model S :smile:
But what's interesting is how dealers stops competition by having laws prohibiting car makers to sell their own product. And how they call it a scam when Tesla tries to explain that they are not selling cars, like "oh yes, you are selling cars in your stores, and you have no right to that." Why on earth do Tesla have to defend themselves by promising that they are not selling anything in their stores.
That is not what capitalism is about. That is some medieval guild system, or something you read in newspapers in Italy regarding the Mafia and their methods. And this makes me laugh. How on earth did you end up here?

They are horrible laws but if Tesla admits to 'selling' cars in their stores then they are violating the law. They need to get the law changed somehow but that will be difficult with such a powerful lobby fighting them.

 

[Norbert]

They are horrible laws but if Tesla admits to 'selling' cars in their stores then they are violating the law. They need to get the law changed somehow but that will be difficult with such a powerful lobby fighting them.

I haven't read the laws, but in terms of what I heard so far, why would they need to be changed, if the sales process is completely separate from the galleries? In theory (or even in practice), they could probably pay a third party to run the galleries, a third party that gets paid a fixed amount to run the gallery and to show the cars and gives info (like a PR company or so), with their whole company not being involved in the sales at all? This might demonstrate (in theory and/or practice) that the galleries are not sales points, as long as their financials are independent of any sales taking place. Or not?

 

[dsm363]

I haven't read the laws, but in terms of what I heard so far, why would they need to be changed, if the sales process is completely separate from the galleries? In theory (or even in practice), they could probably pay a third party to run the galleries, a third party that gets paid a fixed amount to run the gallery and to show the cars and gives info (like a PR company or so), with their whole company not being involved in the sales at all? This might demonstrate (in theory and/or practice) that the galleries are not sales points, as long as their financials are independent of any sales taking place. Or not?

That's a good idea and maybe a way around it. It sounds like the dealership lobby is saying Tesla is in fact selling cars by talking about them so is breaking the law in that way. Changing the law would clear up so many things. I would legally be able to buy a car in Texas for example instead of 'buying' it from California and having to transfer the title over. I also can't contact Tesla directly for service but will have to call a phone staffed in California that will then call the Texas service center to schedule an appointment. Even if I show up at the service center I would have to go through this process.

 

[johnnyS]

Could Tesla set up an independent dealer subsidiary in each state to make sales?

 

[Zzzz...]

Could Tesla set up an independent dealer subsidiary in each state to make sales?

They could not have ownership. Chrysler had to sell dealership they owned after years battling in courts... So that have to be independent dealerships, not subsidiaries.

 

[PeterW]

U.S. Dealer Group Seeks Tesla Meeting on Retail Plans - Businessweek

The National Automobile Dealers Association, which represents almost 16,000 new-vehicle dealers, said it’s seeking to meet with electric-car maker Tesla Motors Inc. (TSLA) about its retail network plans.

 

[vfx]

Waiting for the hidden camera footage of a Tesla store employee saying something out of context.

What's a Galleriye?

 

[VolkerP]

But what's interesting is how dealers stops competition by having laws prohibiting car makers to sell their own product.
That is not what capitalism is about. That is some medieval guild system, or something you read in newspapers in Italy regarding the Mafia and their methods. And this makes me laugh. How on earth did you end up here?

You have a different concept of capitalism. In U.S., capitalism doesn't end with the rich ones buying nice toys. They buy think tanks. They buy lawyers. They buy politicians. They buy laws. They twist the rules of the "free" market to their favor.