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c0lo writes:
"Following the ban on Tesla direct sale in New Jersey, Elon Musk wrote a message to the people of New Jersey on the Tesla Motor's blog, explaining why they don't want to go through dealers and what will happen next with the stores in New Jersey. To put a context around the issue: Tesla soared in consumer satisfaction, while Ford dropped and it's likely to continue dropping.
The post:
- explains why Tesla don't want to sell through dealers, claiming a conflict of interest between selling and servicing gasoline and electric cars.
- explains what will happen with their presence in New Jersey; the stores will be transformed into showrooms, with no info on price being offered, and servicing will not be impacted by the new regulation.
- tells people what they can do - buy online and receive the car delivered interstate or buy from across the river in Manhattan; They can also contact their representatives if they want back the right to buy directly from a store."
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Elon Musk to the People of New Jersey
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(Score: 3, Interesting) by VLM on Monday March 17 2014, @02:24PM
"get the same price no matter where they buy the GM car"
Like Saturn? Which was a division of GM?
The point is that dealers skim at least 10% of the retail sales price market. Obviously not all of that is "excess profit" because even a mfgr owned dealership would have to pay to keep the lights on, pay prop tax, etc.
Still the first major mfgr to go from independent to corporate would get an instant 5% price discount. So the competitors can either go corporate, try to convince people to pay more because its "local", or close.
Am I the only person here old enough to remember when Walmart arrived and the little stores all closed? Admittedly the little stores did mostly suck, so I don't mind, but still...
Now I can either go to walmart with the ghetto people or target where the hot women shop and have my identity stolen. And there's not much else. And they know it, so prices have risen.