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posted by
LaminatorX
on Friday March 14 2014, @11:10AM
from the won't-someone-please-think-of-the-dealerships dept.
from the won't-someone-please-think-of-the-dealerships dept.
einar writes:
"New Jersey's governor Christie has decided that all new motor vehicles must be sold through middlemen. This blocks Tesla from directly selling cars, without traditional car sellers. Although, New Jersey decided so this week, they are in good company: 48 states in the US ban or restrict direct car sales."
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Tesla Direct Sales Blocked by Law in New Jersey
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In Tulsa, Oklahoma, it is against the law to open a soda bottle without
the supervision of a licensed engineer.
(Score: 2) by frojack on Friday March 14 2014, @08:46PM
While I agree with the sentiment, and I think this law might not stand up to an Illegal restraint of trade lawsuit, let me go out on a limb and point out a couple instances where the state might have SOME reasons to require a formal support structure.
1) Safety issues: The state might have an interest to make sure all cars are maintained in a safe condition, that the steering, brakes, etc are reliable and maintained. That maintenance or recall items are being handled. Having to deal with any issues that arise in this area, in another state can present problems. Being able to shut down one or all dealerships in the state provides a lot more leverage.
2) Cars need maintenance. Don't care if its all electric, they need to be serviced, CV joints greased, bearings checked, brakes checked, tires rotated, alignment checked, wiper blades, etc. Tesla offers service plans [teslamotors.com], including home visits. (Yearly service prices seems expensive considering what I pay for dealer maintenance on my gas powered car).
3) State mandated inspections. (Dono, this seems a bit of a stretch).
4) Historical reasons. There were real abuses in the past when manufacturers were able to directly sell cars without dealers. So much has changed in the legal landscape that I doubt any of these issues apply any more. But its still an issue.
5) Reduced State Tax Revenue. I suspect this may be illusionary, but its I don't know.
Other than those, the whole law seems only to fatten someone's wallet, and probably doesn't survive the first federal court challenge. I suspect worst case, Tesla converts their showrooms to legal dealerships via paperwork and a hands-off-third-party company, and still freezes out local car dealers.
When you look at the dealerships in your area and see the mountain of inventory sitting on their lot year in and year out, you have to come to the conclusion that its a pretty inefficient way to manufacture and distribute.
No, you are mistaken. I've always had this sig.