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Trouble in NC: Senate Bill 327

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This weekend I gave my House Representative (who happens to be on the Jobs and Commerce Committee) a test drive in my S. He was very impressed: with the car, with the fact Tesla is repaying their DOE loan early, with Tesla being an American company. On the web browser, I had the Forbes article discussing how the bill violates the Dormant Commerce Clause and much of our discussion centered around that. He is a freshman representative and I doubt he has a ton of clout, however, he did state he would ask the president of the Dealers Association how this bill doesn't violate that clause. He said he appreciated the test drive because he could now tell the committee he had ridden in the car. I am not getting my hopes up, though. As my Rep said, the Dealers' Association has a lot of money to throw around and that buys influence.
Well done!
 
C.Ford - Now that's some serious lobbying! Well done. Where are you in eastern NC? I grew up in Wilson.

Here's an article from CNN. Not much new but the comment regarding how dealers introduce competition into the marketplace is complete crap. Anybody try to buy a Prius when it was the hot green car in 2005-2006? I bought one from a dealer in summer 2006 after a long internet search. I got lucky and got mine for MSRP at a dealer an hour away from where I lived. It as actually a pretty painless experience since there was no haggling; the guy essentially said there's no wiggle room since the car is in such high demand, handed me the paperwork and I signed it and drove away. Other people weren't so lucky in that a lot of dealers were selling cars for more than MSRP and getting fleeced. Think what could happen if Tesla were in the hands of some of these people.

Tesla takes on America's car dealers - May. 20, 2013

"The traditional dealer franchise system is best for car buyers, Wolters insists, because it preserves competition between dealerships selling the same products. It would be difficult for Tesla to maintain its one-price system with competing dealers selling Model S cars." <------ crap
 
"The traditional dealer franchise system is best for car buyers, Wolters insists, because it preserves competition between dealerships selling the same products. It would be difficult for Tesla to maintain its one-price system with competing dealers selling Model S cars." <------ crap

The silly part of this comment is it assumes that there are no other cars in the world other than the Model S. Where's the outrage that an iPad costs $X whether it's bought from Apple, Best Buy or wherever? It was a successful product and Apple charged what they could until a competitor came along with other offerings, giving consumers a choice. Cars are the same way. If I don't like the price on an S, I can choose something else. Plenty of luxury vehicles available at similar price points. And when there's sufficient demand and a compelling reason for other manufacturers to offer EVs similar to the S then they will be brought to market and everyone will have more choices. The only competition a dealership creates is between me and the sales guy.
 
Plug Me In - I am in Edenton. We had our 300th birthday celebration this weekend and a lot of state dignitaries were in town for it. Governor McCrory was on hand, but I couldn't get close enough to talk to him. He was too busy kissing hands and shaking babies, I guess.
 
Wow, that is quite the list of members on one committee...

No wonder it costs so much to get a car through a dealer, if they have to buy off about three dozen politicians!
Tesla Motors NC said:
Dear Tesla Supporter:

We wanted to update you on the proposed legislation backed by the North Carolina Automobile Dealers Association (NCADA) that would prevent you and other North Carolina consumers from purchasing a Tesla car over the Internet.

The proposed legislation has been referred to the Transportation and Commerce Committees of the North Carolina House of Representatives. A hearing has not yet been scheduled. We will keep you posted on the date of the hearing, once it has been announced.

Meanwhile, we need your help. We need you to call these members of the Transportation Committee and let them know that you are opposed to the bill as written. Ask them to support Tesla’s amendment which would allow it to continue to sell cars as allowed under current law.

Below are key messages to respectfully relay to the committee members.

Key Points:
Allow Consumer Choice: North Carolina consumers should be allowed to purchase a Tesla car over the Internet. Currently, Tesla plays by the rules which allow consumers to purchase a Tesla using a computer. Special interests, including the auto dealers, want to change the rules in the middle of the game and prevent North Carolinians from purchasing this car as currently allowed by law.
Let the Free Market Prevail: This proposed change to current law interferes with the free market – and picks winners and losers. The proposal plays favorites to special interests who want to dictate how North Carolinians can purchase a Tesla.
There’s a Solution. Tesla Motors has worked in good faith with the auto dealers to suggest alternatives to the bill. But the dealers have refused to negotiate and are demanding that North Carolinians go through a dealer--- even though the current law allows consumers to purchase a Tesla over the internet. Dealers simply want you to buy a car on their terms only.
Please let your voice be heard, and together we can ensure consumers in North Carolina have a choice and can continue to purchase Tesla cars the way you want to – from your home, office or even on the go.

We appreciate your help in this matter.

Transportation Committee Members:

Representative Hugh Blackwell [email protected] 919-733-5805
Representative Bill Brisson [email protected] 919-733-5772
Representative Brian Brown [email protected] 919-733-5757
Representative Rayne Brown [email protected] 919-715-0873
Representative Dana Bumgardner [email protected] 919-733-5809
Representative Becky Carney [email protected] 919-733-5827
Representative Richard Catlin [email protected] 919-733-5830
Representative George Cleveland [email protected] 919-715-6707
Representative Patricia Cotham [email protected] 919-715-0706
Representative Joshua Dobson [email protected] 919-733-5862
Representative Joseph Dollar [email protected] 919-715-0795
Representative Carl Ford [email protected] 919-733-5881
Representative Valerie Foushee [email protected] 919-715-3019
Representative Rosa Gill [email protected] 919-733-5880
Representative Kenneth Goodman [email protected] 919-733-5823
Representative Charles Graham [email protected] 919-715-0875
Representative Larry D. Hall [email protected] 919-733-5872
Representative Susan Hamilton [email protected] 919-733-5754
Representative Kelly Eugene Hastings [email protected] 919-715-2002
Representative Yvonne Lewis Holley [email protected] 919-733-5758
Representative Frank Iler [email protected] 919-301-1450
Representative Pat McElraft [email protected] 919-733-6275
Representative Charles McGrady [email protected] 919-733-5956
Representative Deborah McManus [email protected] 919-733-0057
Representative Tim Moffitt [email protected] 919-715-3012
Representative Rodney Moore [email protected] 919-733-5606
Representative TIm Moore [email protected] 919-733-4838
Representative Larry Pittman [email protected] 919-715-2009
Representative Stephen Ross [email protected] 919-733-5820
Representative Jason Saine [email protected] 919-733-5782
Representative Jacqueline Schaffer [email protected] 919-733-5886
Representative Phillip Shepard [email protected] 919-715-9644
Representative Edgar Starnes [email protected] 919-733-5931
Representative Michael Stone [email protected] 919-715-3026
Representative Evelyn Terry [email protected] 919-733-5777
Representative Paul Tine [email protected] 919-733-5906
Representative Joe Tolson [email protected] 919-715-3024
Representative John Torbett [email protected] 919-733-5868
 
Sorry, but NC is going to pass a bill that resembles a lot like those passed by dictatorships or country's like china and north-korea to block free speech and opposition!
Is the next step blokking and screening internet & telephone so that citizens can not contact the opposition?
(china has a good system apparently, they can go there for inspiration!)

Funny is, the free market is going to be more free in china than in the usa!
 

From that article:

"I sat down in Palo Alto with Elon Musk, hat in hand, and said we want to partner with you, you can have it exactly as you want it — 'Tesla of Austin,' " said Wolters of the Texas dealers association. "You can do it just as you want to, within our law, you just can't own the showroom."



"We want to partner with you" being a euphemism for "We want our cut." It's all about the money.
 
From the CNN

"If Elon Musk wants to have a showroom in a mall, that's fine," Wolters said, "but he can't own it."

The gall.

Mr Wolters, How would you like it if a multi-billionaire came to your town an simply bought up everything you and your kids love and denied you access? He could buy your kid's local private school, Starbucks, move theater, fast food restaurants shopping malls, golf course, fancy eatery, and render every house on your street an empty shell. He could buy all the businesses surrounding your dealership and raze them to the ground or make them into pleasant smelling dairy farms. He could give a lot more money than you could ever dream of to the politician you have hidden in your breast pocket.

A multi-billionaire could single out any of you vocal free-market deniers and make your life a whole lot diffident than your artificial monopoly now allows you. Tread lightly my friend.
 
So, if this passes, I guess what will happen:

Service Center and Gallery are setup as a different company.

Consumer will order via internet as normal. Transaction will be completed and paid for in California. IMO, NC has no authority to interfere with this transaction.

Car will be shipped by a third party to the consumer's residence and unloaded. A Tesla representative will not be available for a walkthrough either in person, or by phone for some period of time (maybe three days).

Consumer will take the Tesla for State Inspection and Registration. Taxes due will be paid to NC at this time directly from the Consumer.

Service will be scheduled via Tesla in California and subcontracted to the Service Center in NC, if they deem appropriate.

Basically this winds up being little more than a PITA for NC owners. It still needs to be challenged/fixed, but I don't think this will prevent people from getting a Tesla if they want one.
 
Someone just tweeted a photo of a Tesla Model S being demo'd on the grounds of the North Carolina State Legislative Building:

38655108c2fd11e294f522000a9f30b8_7.jpg
 
Yeah, I just checked it out. The representatives there were definitely intrigued and it was getting some passer-by attention even though it was parked on the west side of the legislative building kind of out of the way. First time seeing/sitting in a Model S for me, too!