Wisconsin & Tesla

[Wennfred]

“Tesla had a third chance to be allowed to sell its cars direct to consumers in Wisconsin, but it was stopped at the last second by the governor.”

This is the first I’ve heard of such a thing. Since when does the government have a say as to which cars you can drive in your state. This is unreal, glad I’m not living there.

Fred

 

[jjrandorin]

“Tesla had a third chance to be allowed to sell its cars direct to consumers in Wisconsin, but it was stopped at the last second by the governor.”

This is the first I’ve heard of such a thing. Since when does the government have a say as to which cars you can drive in your state. This is unreal, glad I’m not living there.

Fred

Th quote you are quoting doesnt say people can not drive teslas in the state, it says that tesla can not sell direct. Government has the right to tell businesses what they require to do business somewhere, even if the rules are stupid.

This comes from the traditional auto dealers lobby groups. I am fairly sure texas is the same, so its not just wisconsin. There are a few states that do not allow direct sales by car manufacturers (they must sell through dealers). People in those states have to buy the car out off state but they can absolutely drive it in their state.

 

[SSedan]

These are century old laws set up I believe against Henry Ford or the like.
Intent was to allow Mom and Pop dealerships as opposed to the OEMs owning all the dealerships. Today it is the dealer lobby that fights to maintain those laws but generally they are not new.

I have a Tesla in WI and manage just fine.

If it were ICE manufacturers lobbying to change the law you would be appauled at evil corporations trying to shaft the little guy.

Don't get me wrong the WI governor is terrible. Got into office by manipulation of turnout on one quiet issue that would turn out ignorant single issue voters. They put pot legalization on ballot as an advisory referendum in 16 of 72 counties then kept it very quiet.
If they meant to have a real constructive debate on the topic it would have been state wide rather than designed to turn out the vote on select areas.

 

[Avid]

Yep, Texas is the same, we've been at this for 6+ years. The legislature only is in session once every two years, so it has been a long term battle. This year it might have made it, we'll never know, Tesla's lobbying effort stopped during the store closure announcement debacle.

There's always next session in 2021.

 

[Brentt]

I'm in the furniture business and many of the manufacturers have gone to online, direct sales. They are discovering it's not as sweet a deal as they thought. It's a lot easier to sell a truckload to one dealer than one piece to someone in the middle of nowhere, and then try and deliver and service it.

 

[TexasEV]

I'm in the furniture business and many of the manufacturers have gone to online, direct sales. They are discovering it's not as sweet a deal as they thought. It's a lot easier to sell a truckload to one dealer than one piece to someone in the middle of nowhere, and then try and deliver and service it.

Yeah but in your business the state doesn’t require furniture manufacturers to sell through dealers. Each manufacturer can make that business decision for itself.

 

[Wennfred]

Awesome info, appreciate the input.

Fred

 

[M109Rider]

These lobbyists and corrupt practices are just one of the reasons why I’m so happy with Tesla.
They/Elon, are making such positive changes to such a corrupt system and industry.
I am generalizing, because I know not all in the industry are corrupt. Many of the leaders are though.
Go Elon !

 

[SSedan]

These lobbyists and corrupt practices are just one of the reasons why I’m so happy with Tesla.
They/Elon, are making such positive changes to such a corrupt system and industry.
I am generalizing, because I know not all in the industry are corrupt. Many of the leaders are though.
Go Elon !

a hundred years ago when it was someone like Henry Ford trying to do direct sales and cut out the Mom and Pop it was the big business that was corrupt. Betting if an ICE manufacturer were fighting the same thing you would see them as corrupt. ONLY reason you are good with fighting against third party mandate is it is Tesla. If an ICE mfg did the same you would be bashing their corruption.

 

[M109Rider]

a hundred years ago when it was someone like Henry Ford trying to do direct sales and cut out the Mom and Pop it was the big business that was corrupt. Betting if an ICE manufacturer were fighting the same thing you would see them as corrupt. ONLY reason you are good with fighting against third party mandate is it is Tesla. If an ICE mfg did the same you would be bashing their corruption.

It’s simple. They don’t allow direct sales, because they want to force an industry to stay, (oil and ice auto), and push out electric.
That’s why I’m pro Tesla, and any other EV company fighting this corruption.
Just turns out that Elon single handedly changed the system. ( except for these corrupt stragglers. )

 

[Incredulocious]

“Tesla had a third chance to be allowed to sell its cars direct to consumers in Wisconsin, but it was stopped at the last second by the governor.”

This is the first I’ve heard of such a thing.

Here’s a map of which states in the US that Tesla can or can’t sell direct in (as of August 2018):
Tesla Direct Sales Map (US)

 

[MountainJedi]

Colorado also doesn't allow direct sales and requires dealerships. This was enacted during the last recession as a way to try to protect auto dealers (ostensibly) with looming bankruptcies from the big 3. I don't really get their logic on how it would have provided any protection, but that's neither here nor there. So they're not necessarily 100 year old laws. Tesla, since they already were selling direct in the state, were grandfathered in and can continue to sell direct.

There is now a big push against repealing the laws from the auto dealer lobby because of the threat from Tesla and other startups like Rivian. If I'm not mistaken a bill failed in the last legislative session that would have allowed direct sales again. Rivian has already said that they don't know how they'll deal with Colorado since they don't want to undertake a dealership model. Given the demand for trucks and SUVs here, I think Rivian would do very well, but as of now, they won't be able to sell in CO without something changing on one side or the other.

 

[SSedan]

It’s simple. They don’t allow direct sales, because they want to force an industry to stay, (oil and ice auto), and push out electric.
That’s why I’m pro Tesla, and any other EV company fighting this corruption.
Just turns out that Elon single handedly changed the system. ( except for these corrupt stragglers. )

Bull the law is DECADES OLD. It is not about ICE and Tesla, it just affects them today.
What if you found out it is Republicans pushing to change the law?

I am having trouble finding the actual law but the articles I found talk about past attempts to change it all stated the law is old.

 

[OlderThanDirt]

Actually the "old Wisconsin brewery law" was originally conceived to theoretically protect taverns from breweries from getting in the tavern business. Of course it morphed into something else over the years. So now so called "mom and pop" dealerships (even though some have every brand under their shingle) are using the no direct sales law (Brewery Law) to keep Tesla from selling direct in Wisconsin.

During the last previous attempt one party controlled the legislature and the governors office. That made little difference. It made it to the transportation committee and a hearing was held. The committee chairman never called for a vote so it could go the full legislature. A good number of Tesla owners made multiple trips to the state capitol answering questions, giving rides and explaining why Tesla MUST to sell direct to its customers.

The party doesn't matter. It's all about the money, money, money!!!!

All I know is we really felt like we needed to take shower after dealing with those people. The level of incompetence in that legislative body is sickening.

 

[sduck]

Wrong forum - should be in Tesla Inc.

 

[ElectricLee]

Its like a law that requires Flip Phones and No Smart phones are allowed in our state.

Only Spinning Hard Drives No SSD’s are allowed.

Only paper bills in the US mail No PDF’s or email/online monthly bills.

Only Horses for Travel No Automobiles in our state.

Only ice boxes No electric freezers in our state.

All of these old laws needs to be updated for changing times.

 

[Bobbo8]

It seems the legislators in the states restricting Tesla and the direct sales model are only concerned for the dealers and not their constuents. What value do auto dealers add besides adding cost? Someone is paying the carrying cost of their lots full of unsold cars. How do you know you got the best price when every dealer claims they have the lowest prices???

 

[M109Rider]

Its like a law that requires Flip Phones and No Smart phones are allowed in our state.

Only Spinning Hard Drives No SSD’s are allowed.

Only paper bills in the US mail No PDF’s or email/online monthly bills.

Only Horses for Travel No Automobiles in our state.

Only ice boxes No electric freezers in our state.

All of these old laws needs to be updated for changing times.

Agree, and to go one step further. This law isn’t being amended, because the lobbyists and others have a vested interest in either oil, or the dealerships.

It’s like allowing flip phones but not smart phones because they have a financial interest in the flip phone market only.
“Corruption”.

 

[Gordon87]

a hundred years ago when it was someone like Henry Ford trying to do direct sales and cut out the Mom and Pop it was the big business that was corrupt. Betting if an ICE manufacturer were fighting the same thing you would see them as corrupt. ONLY reason you are good with fighting against third party mandate is it is Tesla. If an ICE mfg did the same you would be bashing their corruption.

Well, it's really your issue, not mine since we have Tesla sales and service centers, but I believe you are missing an important disctinction:

The franchise laws which being enforced in WI and Texas were meant to prohibit manufacturers from opening retail outlets competing against their own franchisees. It was a protection in lieu of draconian contract provisions which manufacturers might have put in franchise agreements allowing that competition.

But now, non-Tesla dealers (as, of course, there are no Tesla dealers) are using these laws to prohibit Tesla from competing against non-Tesla dealers. It is completely anti-competitive and disadvantages consumers for the benefit of dealers.

If the laws were originally written with more particularity, they would have prohibited manufacturers from competing against their own dealers, so if a manufacturer (e.g., Tesla) had no third party dealers, it wouldn't be prohibited from opening retail stores.

This really has nothing to do with what ICE manufacturers might or would do. I haven't heard that ICE manufacturers are pushing their dealers to engage in this fight.

 

[Krugerrand]

Well, it's really your issue, not mine since we have Tesla sales and service centers, but I believe you are missing an important disctinction:

The franchise laws which being enforced in WI and Texas were meant to prohibit manufacturers from opening retail outlets competing against their own franchisees. It was a protection in lieu of draconian contract provisions which manufacturers might have put in franchise agreements allowing that competition.

But now, non-Tesla dealers (as, of course, there are no Tesla dealers) are using these laws to prohibit Tesla from competing against non-Tesla dealers. It is completely anti-competitive and disadvantages consumers for the benefit of dealers.

If the laws were originally written with more particularity, they would have prohibited manufacturers from competing against their own dealers, so if a manufacturer (e.g., Tesla) had no third party dealers, it wouldn't be prohibited from opening retail stores.

This really has nothing to do with what ICE manufacturers might or would do. I haven't heard that ICE manufacturers are pushing their dealers to engage in this fight.

Put succinctly, the laws were made to prevent the OEM from undercutting the dealership.