Tesla seeking to open Richmond facility

[jthompson]

My letter to the VA DMV Commissioner:
"
Sir,
Thank you for serving the citizens of Virginia. I ask that you stop the travesty of allowing the VADA to dictate public policy in Virginia and allow Tesla to open more dealerships. The public is best served by allowing Tesla's business model to grow in Virginia. The days of the franchised dealerships are coming to an end - you know that and I know that. Several large auto manufacturers (Toyota being the largest of them) are already exploring the direct-to-consumer sales model Tesla is using.

I have purchased many vehicles from franchised dealerships over my lifetime, and I have always walked away angry at the whole experience. After purchasing my first Tesla (and it took only a few minutes online to order it and less than 3 MINUTES to sign the papers when I picked it up at the Tesla dealership!!!), I am firmly convinced the monopoly of franchised dealerships need to make way for manufacturer direct sales.

It is time to change the way Virginian's can buy a car - you can either lead or get out of the way. I hope you choose the path of leading and allow Tesla to open more dealerships in Virginia."

 

[Redmiata98]

Bravo, JT!

 

[bhzmark]

Auto dealers will eventually go the way of record stores. We don't need or want those middle men anymore.

 

[hsctiger93]

1. Does anyone believe more letters to the DMV commissioner will help? I'll write if we think it helps.
2. What we really need is someone to get in the Governor's ear. He's probably the most progressive Governor we'll see in a generation and has supported the EV industry to the point of investing in an EV company in China. Sure, we can petition the DMV but what we really need is to get the law changed.

 

[Only Trons]

The governor does not write laws. The legislature does.

 

[hsctiger93]

True, but the governor sets his legislative agenda which the legislature then votes on. It is Republican controlled though...

 

[GaryREM]

Everyone, this is a recommendation. The commissioner makes the decision.

Of course his last favorable decision resulted in VADA bringing a lawsuit, but Tesla ended up with the Tyson's corner location.

Per official reply just received from Commissioner Holcomb's office:

"The parties have an opportunity to submit in writing any exceptions to the hearing officer’s Recommended Hearing Decision, which Commissioner Holcomb will consider before issuing a final decision."
​

Don't give up.

 

[hsctiger93]

My letter:

Mr. Holcomb,

I'm sure your email box is getting flooded with Tesla supporters. I am another.

Similarly, I'm sure you will hear many reasons that you should approve Tesla's 2nd store in Richmond. I have many views but will limit them to just a few.

1. VADA has on a number of occasions stressed concern over Tesla's financial condition as a reason the dealer network should apply as a protection to consumers. If you will remember, Fisker, another EV company, folded. When they went under, the dealership network followed and Fisker owners were left to fend for themselves. How would dealers act differently with Tesla? The same could be said with DeLorean. I would wager a dollar that if you looked at the defunct car makers still serviced by the dealers, 100% of them would come from brands already under the control of one of the big 3 auto makers at the point of bankruptcy- Saturn, Oldsmobile, and Hummer (all GM plates); AMC (Chrysler); Mercury (Ford). To me, it's pretty obvious they protect their own and nothing more.

Dealership's actions in the past do not support their argument that a dealership model protects consumers if Tesla were to go bankrupt.

2. Long standing relationships between VADA and state government create inertia. I get it. They lobby heavily inside our legislature to protect their business model as do the wineries, brewers, gun people, unions, etc. However, there are times when we must look at what the future of this business should look like, not what it looks like today.

If you think about it, tools and businesses have formed for the explicit purpose of leveling a playing field between consumer and seller in the automobile industry. Websites track sale prices and provide negotiation advice; experienced used car buyers offer wholesale auction options; negotiation services opened to help consumers acquire an automobile at a "fair" price (though it's still very opaque). On the service side, independent repair shops opened to create price competition. If the dealership model is truly in the best interest of the public, why do we need to build all these tools and businesses to level a negotiating playing field vs. a car salesman?

3. New technology. Time and again, we see studies showing automobile dealers trying to steer people away from electric vehicles. Automobile makers have strong relationships with oil companies who see a major consumer of their product at risk so they discourage anything that does not involve an internal combustion engine as a primary component to motion. Regardless of your belief in climate change, the supply of oil is quite finite and fickle due to geopolitical events. This new technology must be supported in order for our society to ultimately wean itself from this finite resource. If the dealers continue to discourage consumption of EV's, then you must allow other models to encourage them.

4. Out of state competition. I purchased my Tesla online. I have it serviced in North Carolina. Virginia did not benefit one dollar from my purchase or service decisions. Do we want to continue to outsource potential tax revenue and employment to other states?

Virginia has the opportunity to foster positively disruptive innovation that's in the best interest of our citizens or cling to antiquated laws that benefit a few wealthy business owners. I hope you will choose the former.

Sincerely,

 

[Barry F]

The reply to my email to the Commissioner was returned with the first sentence of the second paragraph highlighted in yellow. Curious.

Mr. F,

Thank you for your recent communication regarding the Recommended Hearing Decision issued in the hearing involving Tesla Motors, Inc., and the Virginia Automobile Dealers Association. Governor McAuliffe asked a representative from the Department of Motor Vehicles (DMV) to respond.

The parties have an opportunity to submit in writing any exceptions to the hearing officer’s Recommended Hearing Decision, which DMV Commissioner Holcomb will consider before issuing a final decision.

Sincerely,
Marta
Marta C. Morales
Virginia DMV | Program Manager |Legal Services

************
From: Barry F
Sent: Sunday, September 25, 2016 12:41 PM
To: Holcomb, Richard (DMV)
Cc: [email protected]
Subject: Tesla Facility in Richmond

Dear Commissioner Holcomb,

On June 11, 2016, I sent you a letter in favor of Tesla opening a second facility in Richmond, VA. In it I highlighted the insincerity of the franchised dealers writing to Tesla requesting to become a Tesla dealership. The insincerity of their actions comes from the timing of the letters. All of their letters were written within a few weeks of VADA imploring them to write. This is their attempt to protect the box, of having a manufacturer unfairly competing against them. This is an attempt to satisfy the letter of the law, but it is clearly without substance.

What is interesting is no one at the hearing addressed how Tesla’s first facility, being the manufacturer, is harming the franchise dealerships in Northern Virginia. Since this Tesla facility is operating in the public’s best interest without having any negative impact towards existing franchises, what can the franchised dealership possibly add? Any attempt to use a franchise dealership for Tesla will only add an unnecessary layer of cost for Virginia buyers. It is not in the public’s best interest.

I urge you to rule in the public’s interest by allowing Tesla to open their second facility in Richmond.

Regards,
Barry F

 

[hsctiger93]

Anyone have an opinion on the court of appeals decision to allow VADA to continue its lawsuit?

 

[diamond.g]

Anyone have an opinion on the court of appeals decision to allow VADA to continue its lawsuit?

Lame? Lol, is there a link for reference?