Update on the Salt Lake City Tesla store turmoil

[Patrick W]

At least now they have a sign

Stopped by the SLC service center yesterday to charge and use the WiFi and was surprised to see the new sign. And they said there's another coming soon. Up to now the only sign has been the one on the building. Sometimes progress comes in small steps.

 

[neroden]

Y'know, in the long run the 'sales' issue isn't going to be much of an issue. If Tesla has Superchargers everywhere and Service Centers everywhere and Galleries everywhere, the sales restriction becomes insignificant.

Restrictions on service centers would be a much bigger problem. (Don't tell NADA.)

 

[stephenpace]

Restrictions on service centers would be a much bigger problem. (Don't tell NADA.)

They already know. A while back, they amended the Texas law to declare that a Service Center is the same as a Dealership (not because of Tesla, but because they were worried about Ford opening up a service center and taking away the most profitable part of the business which is repairing ICE cars). This means all of the dealership laws in Texas apply to standalone service centers as well. This translates into me needing to call a Tesla number in California, a person in California opening a ticket, and that person routing the ticket to the Houston service center to act on. Then the Houston service advisor can call me.

 

[neroden]

They already know. A while back, they amended the Texas law to declare that a Service Center is the same as a Dealership (not because of Tesla, but because they were worried about Ford opening up a service center and taking away the most profitable part of the business which is repairing ICE cars). This means all of the dealership laws in Texas apply to standalone service centers as well. This translates into me needing to call a Tesla number in California, a person in California opening a ticket, and that person routing the ticket to the Houston service center to act on. Then the Houston service advisor can call me.

Good grief. This is what we have to fight if they try to do it any other states.

 

[Patrick W]

I stopped by yesterday for a tire rotation and saw they've added yet another sign out front. And the front door is now unlocked albeit with signage saying service only, no sales.

Funny thing with the "no sales" is most every time I'm there there are cars on the lot with "Sold" signs on them. Of course they were sold online and only delivered to Utah but still not bad for a state where they can't be sold.

And news on the legislative front as well:

Lawmaker pushing for compromise over Tesla sales in Utah | Deseret News

 

[brucet999]

I stopped by yesterday for a tire rotation and saw they've added yet another sign out front. And the front door is now unlocked albeit with signage saying service only, no sales.

Funny thing with the "no sales" is most every time I'm there there are cars on the lot with "Sold" signs on them. Of course they were sold online and only delivered to Utah but still not bad for a state where they can't be sold.

And news on the legislative front as well:

Lawmaker pushing for compromise over Tesla sales in Utah | Deseret News

It seems like a simple compromise would protect dealers from manufacturers undermining them if the law were simply amended to read that manufacturers that sell anywhere through franchised dealers may not sell or service vehicles directly in Utah; those that have no dealers may sell or service directly. That would require honest intentions on legislators' parts, of course.

 

[nathanharman]

Looking from the outside the various US state based sales/distributor laws do look pretty silly. Only upside is hopefully we'll get a Tesla store/service centre in Western Australia sooner!

 

[reddy]

That explains it. Every time the service center in Austin calls me about something (had work done there even though they aren't the closest to me) , they give me an out of state number for the callback number. I thought that was a weird idea, since it would be a lot easier to simply get a local land line for me to call.

Only in Texas...... or actually only in Texas, NM, and Utah......

They already know. A while back, they amended the Texas law to declare that a Service Center is the same as a Dealership (not because of Tesla, but because they were worried about Ford opening up a service center and taking away the most profitable part of the business which is repairing ICE cars). This means all of the dealership laws in Texas apply to standalone service centers as well. This translates into me needing to call a Tesla number in California, a person in California opening a ticket, and that person routing the ticket to the Houston service center to act on. Then the Houston service advisor can call me.

 

[Jaff]

Agree Bruce, but who are the Dealers more afraid of...the manufacturers they represent, or Tesla?

It seems like a simple compromise would protect dealers from manufacturers undermining them if the law were simply amended to read that manufacturers that sell anywhere through franchised dealers may not sell or service vehicles directly in Utah; those that have no dealers may sell or service directly. That would require honest intentions on legislators' parts, of course.

 

[brucet999]

Agree Bruce, but who are the Dealers more afraid of...the manufacturers they represent, or Tesla?

Absolutely, the dealers will oppose any new competitor. The question is whether enough legislators remain unbought who might be willing to use such a clause to protect exiting dealers while accommodating non-dealer mfrs.

 

[Robert.Boston]

Absolutely, the dealers will oppose any new competitor. The question is whether enough legislators remain unbought who might be willing to use such a clause to protect exiting dealers while accommodating non-dealer mfrs.

What the existing dealers also envision is getting to become the local Tesla dealer so they can get in on a hot new item. But that's merely a growth opportunity; what really had the dealers who showed up to try to stop Tesla from getting a Massachusetts dealers license was that the OEMs they represent could start selling directly.

 

[srthomas21]

So do they have test drives at the SLC location or not?

I can't seem to find any info on it.

 

[Patrick W]

I can't seem to find any info on it.

The SLC service center can not give test drives. They can't even talk with potential buyers about the cars. If you are in Utah and want to get a ride in a Tesla do as I did and post on the forums that you want to ride and chances are good you'll find a willing owner that would be happy to accomodate (if you are in or near SLC that might even be me. )

 

[ccutrer]

It seems like a simple compromise would protect dealers from manufacturers undermining them if the law were simply amended to read that manufacturers that sell anywhere through franchised dealers may not sell or service vehicles directly in Utah; those that have no dealers may sell or service directly. That would require honest intentions on legislators' parts, of course.

That is exactly what HB394 back in January proposed to do.

 

[Vger]

I stopped there to use the supercharger, a couple months ago, after TMC Connect. My wife and I were just heartsick at the huge investment and good intention that Tesla had made there, left unfulfilled. At least it functions as a service center and supercharger!

 

[Patrick W]

Being a local I stop by there once a week or so just to see how things are going.

It's funny but for a place that can't sell cars there are always new sold cars there waiting to be picked up or delivered. If business is that good when they can't sell I look forward to seeing how much more business they can do when they can.

 

[Patrick W]

New thread for now that it's open:

Salt Lake City Open (mostly)

 

[Patrick W]

Stopped by today and was delighted to see five (!) Model Xs that had just been delivered. No pictures allowed as they are customer cars. Could not even get too close. But it was nice to see so many all at once. They brought one inside to start dealer prep stuff and opened both gull wing doors. Fun to watch. (Yes, I know they are falcon wing doors but I've been in lust with the MB 300SL for decades so any doors that open "up" are gull wings to me.

As I was leaving there was a guy interested in a ride. No company Teslas available so I offered a ride in mine. Part way through the demo he mentioned he is a Utah state legislator. When he said that I blurted (in a hopefully nice way) "Can you fix the law?"

When I got home this evening I heard from another legislator I've spoken with before and she said she'd just heard from the guy and that he enjoyed the ride and does want the law changed. So, fingers crossed. Next legislative session starts later this month.

 

[Vger]

Stopped by today and was delighted to see five (!) Model Xs that had just been delivered. No pictures allowed as they are customer cars. Could not even get too close. But it was nice to see so many all at once. They brought one inside to start dealer prep stuff and opened both gull wing doors. Fun to watch. (Yes, I know they are falcon wing doors but I've been in lust with the MB 300SL for decades so any doors that open "up" are gull wings to me.

As I was leaving there was a guy interested in a ride. No company Teslas available so I offered a ride in mine. Part way through the demo he mentioned he is a Utah state legislator. When he said that I blurted (in a hopefully nice way) "Can you fix the law?"

When I got home this evening I heard from another legislator I've spoken with before and she said she'd just heard from the guy and that he enjoyed the ride and does want the law changed. So, fingers crossed. Next legislative session starts later this month.

Bravo! Way to take the high road!

 

[RDoc]

What the existing dealers also envision is getting to become the local Tesla dealer so they can get in on a hot new item. But that's merely a growth opportunity; what really had the dealers who showed up to try to stop Tesla from getting a Massachusetts dealers license was that the OEMs they represent could start selling directly.

My understanding is that there's also a serious concern that Chinese manufacturers may start selling cars in the US in a few years without going through dealerships.