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NPR Details History Behind Franchise System

Discussion in 'News' started by SteveG3, Mar 12, 2014.

  1. SteveG3

    SteveG3 Active Member

    Sep 21, 2012
    #1 SteveG3, Mar 12, 2014
    Last edited: Mar 12, 2014
    this is a piece from February, 2013 that gives some depth on how the franchise system came into effect.

    they describe the origins of the protections in place for dealers as Tesla has... to protect a franchisee from being pushed around from a manufacturer who granted the franchise (going into some detail of exactly the kind of pushing around that happened in the 1930s to prompt these laws) . no mention of the auto dealers contention that the system exists to protect consumers from automakers.

    I found the whole piece helpful (including an example of the language that creates territorial monopolies for dealerships... that is, no other franchise within a given distance), but the part supporting Tesla's description of the basis of the laws is a couple of minutes and you can skip to 11:20 for that aspect of the story.

    Episode 435: Why Buying A Car Is So Awful : Planet Money : NPR

    fwiw, I found this npr story through this quite good piece out tonight from Wired,

    New Jersey Bans Tesla to Ensure Buying a Car Will Always Suck | Wired Business |

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