I listened to the hearing on LB 830 and it sounds like Tesla might be in for a legal fight. Here are some of the very general notes that I took to the best of my ability. I did miss the first part of it and am not close on the spelling of some names.
Senator Vargas
1. Missed all of his speech, he is the one that introduced the bill.
Missed this part.
Tesla Rep:
1. They see 2 to 5 locations in Nebraska starting with a service center in Omaha.
2. They will go to Council Bluffs if not approved.
3. Currently 170 current owners in Nebraska
4. See 4 to 5x growth in the next few years
5. Talked about wait list of two years for Model 3
Board Member: Statement “So we are not inhabiting your growth at this point in time”
Owner of Five Nines Technology Group in Lincoln & Omaha
1. Told the story about how he bought 2 Tesla’s in California and did not pay Nebraska taxes
2. Told how he could not lease a Tesla in Nebraska
Elton Olson(sp)
1. Support for Tesla
Matt Wegener, founder of Turbine Flats in Lincoln
1. Said something about his or someone’s son from Kearney being the head of Tesla Global Sales so Tesla is local. (I could not hear it all)
2. Gave a long speech with general support
??? Coffisner (sp) from Central City
1. Talked about EV options locally and why he had to purchase his Tesla in Colorado.
2. Wife said why do they only have 1 EV and so they got another.
3. Talked about public power incentives for light bulbs, energy star appliances and how public power is supportive of EV’s as that will be part of their business.
4. His business will be installing Public Tesla chargers at their location. He did not say what type of charger.
Opposition
Loyd Cogg (sp) Nebraska Auto Dealers Association
1. Franchise System, 170 dealers and 8,000 employees
2. Competition reduces vehicle costs $500
3. Story about Ford selling direct and that scared local dealer and that is why the franchise system is in place.
4. Warranty work is a profit center for dealerships and they want to keep that.
5. Vehicles bought outside of the state should still pay state sales tax.
6. Tesla says they will deliver your car if over 160 miles so let them do that. We don’t want to lose 8,000 jobs.
Board Member: Asked historically why there are franchise locations
a. At the time no automaker had enough money to set up dealerships around the country
I missed a couple of questions (Damn job)
Board Member: Asked about warranty work
a. All manufactures will want to sell direct
John Lindsay – Alliance of Automobile Manufacturers (This is the group that include BMW, Fiat, and about 12 others)
1. In opposition, the bill is much larger than just Tesla. It would limit existing dealers but open doors to tech companies and overseas companies that do not currently sell here.
2. There are 70+ EV’s coming so why have separate rules, Tesla could follow the existing rules if they wanted.
Board Member: Asked if motorcycle and trailers were included in this.
a. He only represents Auto Dealers
Mickey Anderson – Owner of Baxter Auto Group
1. 1,500 employees for 10 different manufacturers.
2. Franchises help manufactures reinvest in the local communities.
3. It’s not about sales as Baxter sells as much as Tesla.
4. Tesla is not the tech leader as other manufactures spend a lot more on tech than they do.
5. It’s about service as that is where the expenses are. They are training young people to be able to repair and service ICE vehicles for a long to come.
Board Member: Speak about how these rules affect your decision to invest?
a. We are investing for the future, when the auto dealers went bankrupt they cut small down franchises.
Thomas McCaslin – Broken Bow
1. When GM when bankrupt they cut their dealer agreement.
John Dunst – Columbus NE, Ernst Auto
1. When GM when bankrupt they cut their Cadillac dealer agreement.
2. Franchise Laws protect them
Ron Sedlochek (sp)– NE Chamber of Commerce
1. Dealers provide trust and competition in car buying.
2. Dealers support local communities where out of state companies (Tesla) may not.
3. Dealers provide support that out of state companies can’t. They can provide warranty and recall fixes where (Tesla) can’t.
Senator Vargas
1. This is not to change the existing rules. It will just allow for Tesla’s new business model.
2. If ICE manufacturers wanted to sell direct, why are they not here?
3. Tesla has the highest rated recall service and they want to fix these recalls.
4. Tesla's model is the best for price, service and knowledge
5. Tesla is going out of its way to service vehicles
Board Question: Why has Ford not asked to sell direct?
a1. They have not asked and we have not seen this in other states.
a2. There has been no evidence in areas that Tesla operates of changes to how auto manufacturers are doing business.