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Auto dealers are backing the bills in an attempt to uphold current sales models

Tesla Motors may see its stores banned in New York thanks to a pair of bills that look to protect auto dealers. 

Tesla has its own “Tesla Stores”, which act as showrooms for customers. There, they can see the models and even test drive them before making a purchase online from the Tesla website. Tesla does this as opposed to selling its vehicles to auto dealerships

But a new pair of bills, referred to as A07844 in the Assembly and S05725, may put an end to that in the state of New York. The bills would make it illegal to license -- or even renew licenses -- for all Tesla Stores within New York state borders.

In addition to a ban on renewing licenses for existing Tesla sites, the bills also make it illegal to license any future stores; amends New York's vehicle and traffic laws regarding "unfair practices by franchisors," and prevents New York from issuing/renewing the registration of any car dealer where a manufacturer holds a controlling interest (unless that certificate was issued before July 1, 2006).

The bills were submitted just before the New York Legislature adjourned for the summer. This means that they will sit in the New York State Assembly until January 2014 when it returns. No decisions were made regarding the bills before it adjourned.


As you can probably guess, Tesla isn't too happy about this. The electric automaker issued a statement last week regarding the bills:

The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace, and Tesla will be put out of business in New York. The result would be that all of Tesla’s New York employees will lose their jobs.  It means that New York-based suppliers to Tesla will lose business and New York consumers cannot buy the most advanced electric car in the world today. Banning Tesla from selling its vehicles is also a step in the wrong direction for reducing carbon vehicle emissions and the green environmental movement in New York.  With the State of New York pushing so hard to lead green innovation supporting entire agencies for energy efficiency like NYSERDA, it is absolutely defies logic to ban Tesla from selling electric cars in New York.

From the beginning, Tesla’s goal has been to catalyze the market for electric vehicles and selling through intermediaries at this stage of the company will not work.  For Auto Dealer Associations to claim that restricting competition is in the best interests of the public is wrong and defies obvious common sense.  If we are kept out of New York, it forestalls progress and defeats innovation.

Tesla has created jobs in New York at both its stores and service centers and the sales of its vehicles go into supporting the local economy. Tesla remains committed to bringing electric vehicle technology and its customer focused sales and ownership experience to New York consumers, while complying with all local and state laws.

Back in April of this year, Tesla CEO Elon Musk openly fought for a Texas bill that would cut out the use of auto dealerships. The bill -- House Bill 3351 -- would allow distributors and manufacturers of electric vehicles (EVs) only to sell directly to customers without the use of dealerships. The bill was filed by Rep. Eddie Rodriguez (D-Austin). 

Musk even said that if the fight for the Texas bill came down to a federal matter, he would either lobby Congress to pass legislation for the direct sales of EVs made by startup companies like Tesla (and tie it to an energy or transportation bill) or file a federal lawsuit to fight the state restrictions as unconstitutional violations of interstate commerce.

Musk is open to a dealership model at some point when sales increase, since dealerships do promote competition and keep prices down. 

Source: Green Car Reports



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RE: Question,
By lelias2k on 6/24/2013 11:22:47 AM , Rating: 3
You see, that's an example where generalizing is just wrong. Especially when you are putting the blame where it usually doesn't exist. I worked at a Chevy dealer for 6 months as a salesman. Here are my thoughts:

- The tactics are usually not from the salesperson. Most of the time it comes from management. I'd say 95% of the time.

- Yes, there are some sleaze balls who lie through their arses just to get a sale, but this I'd say it is in the same level you find anywhere. Gosh, how many Best Buy salespeople talk crap on a daily basis just to sell something more expensive to people who don't know better?

- We never tried to avoid warranty work, as far as I could witness. I think this depends a lot on the dealership, and once again it goes back to management.

So in the end, the salesperson is the one who takes the blame for everything, simply because he's the person you have most of the contact with. He/she doesn't set the price, doesn't define who much discount to give, doesn't close the deal (and in the process closes you on you all the extras you mentioned). But because he/she is dealing directly with you from the beginning, guess who takes the blame for everything?

All that said, I completely agree that we don't need dealerships, especially when it comes to electric cars, which have much less maintenance than ICE cars.

But the fact is that the world is changing at a pace that is much faster than society can keep up with. We are losing thousands of jobs every year to new technology, and we are neither replacing them nor reorganizing our society to deal with it. It is a time bomb, and I just hope it doesn't explode in my lifetime, because it will be ugly.


RE: Question,
By spamreader1 on 6/24/2013 12:09:25 PM , Rating: 2
I have to disagree, generalizing is right even if it is not PC some times. Most best buy salesmen I've met were car salesmen at some point in their lives. Sales managers are still salesmen. Granted you might not want to blame the guy in your face, but you can as they choose to continue to work in that condition.

Another point to me is if I want to buy a car, what's the point of pissing away 3-4 hours of my day with some guy who can't answer any questions without going back and forth to another guy in a glass room who is obviously the guy to make the decisions? Why can't I just talk to the guy who can make the decisions and be done in 10 minutes? Simple logistics.

It's the business model itself that tend to take issue with.
1. You have cars to sell 2. I want to buy car 3.Set a price, if I like the car and price I buy it, if I don't like either I walk away. Why is that so freaking complicated an issue? But then again the whole concept of haggling is idiotic to me anyway, neither party feels like they win at the end of the day. The seller is left feeling they could have gotten more, and buyer leaves feeling they could have gotten more for less, it's a lose lose situation >90% of the time.


RE: Question,
By Ammohunt on 6/24/2013 1:24:38 PM , Rating: 2
quote:
Another point to me is if I want to buy a car, what's the point of pissing away 3-4 hours of my day with some guy who can't answer any questions without going back and forth to another guy in a glass room who is obviously the guy to make the decisions? Why can't I just talk to the guy who can make the decisions and be done in 10 minutes? Simple logistics.


Could not agree more my favorite is the drama! and the serious looks like you are robbing him. Cost plus 10% sounds fair! lets do this thing.


RE: Question,
By lelias2k on 6/24/2013 5:27:29 PM , Rating: 2
When I said management, I meant upper management. Not the a**holes that sit behind the sales desks. Those are puppets too.

And I don't know why you were babbling about the whole experience, when I said in my post that I don't think we need dealerships either. Did you just need to vent? :)


RE: Question,
By BRB29 on 6/24/2013 12:24:50 PM , Rating: 2
quote:
he tactics are usually not from the salesperson. Most of the time it comes from management. I'd say 95% of the time.


And yet when some of you guys that make it to management, you still do nothing about it knowing the problems you faced and what customers endured. That's why most people think car salesmen are sleazeballs.


RE: Question,
By lelias2k on 6/24/2013 5:21:18 PM , Rating: 2
First of all, please don't say "some of you guys". I'm out of that business and I don't like the way you're pointing your finger at me.

Second, just because salespeople become sales managers, that doesn't mean that they own the business.

When I say management, I mean general manager. The guys that were salesmen 30-40 years ago and don't seem to understand how fast the market is changing.

And last of all, you can blame the salesperson as much as you want, but the uneducated customer is to blame too. Years before becoming a salesperson I already knew I couldn't step into a dealership without good research. You shouldn't do that while buying ANYTHING, much less a car.

If you're not smart enough to realize that, don't blame when other people take advantage of you. Because they will.


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