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They want to stop the automaker from building new store locations

Tesla Motors just can't catch a break with this auto dealership fight as New Jersey recently banned direct sales, and now Ohio is looking to do the same. 
According to The Detroit News, Ohio auto dealers are supporting a bill that would stop Tesla from opening stores outside of its only two locations in Ohio.
Tesla currently has stores in Cincinnati and Columbus, where direct sales are allowed. The automaker was granted this authorization when Republican Gov. John Kasich -- through the Bureau of Motor Vehicles -- issued Tesla a license to do so. 
But auto dealers believe that Tesla's direct sales model could branch out to many more locations, and eventually, other auto manufacturers could even follow suit. If this were to happen, auto dealers would be out of a job. 
Ohio auto dealers took legal action against Tesla's two stores, but it didn't fall in their favor. So now, the dealerships are pushing for a new bill that would prevent Tesla from opening more locations. 
“The bill would shut down our ability to grow in the Ohio market and, frankly, it’s just a first step to them shutting down our existing businesses,” said Tesla Vice President Diarmuid O’Connell. “This is the pattern we see in other states."

[SOURCE: The Car Connection]

According to auto dealers, they are necessary middlemen between auto manufacturers and consumers. They've insisted that their role provides fair play for consumers when it comes to warranties and service issues. 
Tesla feels differently. Tesla CEO Elon Musk said that auto dealerships don't do a very good job at selling specialty cars like Tesla's high-end electric vehicles (Roadster, Model S). Hence, he's looking to run his own Tesla stores around the U.S. where he believes his cars will get a fair shot at being sold.  
The problem is that auto dealers don't want to sell Tesla vehicles, and they're also barring Tesla from selling its own vehicles (with the exception of online, where customers can physically touch or test drive the EVs). 
It recently came to light that Ohio Sen. Tom Patton (R-Strongsville) backed the bill -- called Senate Bill 260 -- which aims to prevent Tesla and any other automaker from "applying for a license to sell or lease new or used motor vehicles at retail." What's interesting is that Patton received at least $42,825 between 2002 and 2013 from state and national auto dealership owners, employees, and political action committees. 
Auto dealers spent $86.8 million on state election races across the U.S. between 2003 and 2012. They also spent $53.7 million on federal campaigns. Tesla, on the other hand, has spent less than $500,000 on both state and federal politics.  
The deep pockets of auto dealers is what Tesla believes is the cause for the recent direct sales ban in New Jersey. Earlier this month, New Jersey Gov. Chris Christie’s administration proposed the new rule, which requires a person to have a franchise agreement with an auto manufacturer in order to be granted a license to sell. 
Then, last week, the New Jersey Motor Vehicle Commission voted in favor of the ban of direct auto sales. Tesla already operates two stores in New Jersey, and had plans to open more before this new rule.  
Musk wrote his frustrations in a blog post titled, "To the People of New Jersey" on the Tesla Motors website. Musk said Christie's "protection" of consumers is similar to that of the mafia, and even brought up the Bridgegate scandal.  

Source: The Detroit News

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Thieves will be theives
By weaponzero on 3/19/2014 3:01:52 PM , Rating: 5
Next up, thieves support stealing.

It is funny how the auto dealers ignore the most important person, THE CONSUMER! Did they bother to ask how the consumer feels about the issue?

I'll give them a clue. Car salesmen have an approval rating of 9% in latest Gallup poll. Let us decide who we want to buy from, we need your protection almost as much as we need your dealership stickers. Aka we are capable of making decisions ourselves.

RE: Thieves will be theives
By lawrance on 3/19/2014 7:54:17 PM , Rating: 5
Doesn't this fall under the "Free Market" that republicans are always taking about? Funny how 5 of the 6 states Tesla is having problems with are republican states.

RE: Thieves will be theives
By Motoman on 3/19/2014 9:39:40 PM , Rating: 5
The Republican definition of a "free market" is a market in which they are free to manipulate it anyway they want to.

RE: Thieves will be theives
By stmok on 3/20/2014 9:58:28 PM , Rating: 2
This isn't Free Market at all. This is just outright Crony Capitalism .

The problem is the current political culture. Many in Govt believe they have every right to piss your money away, help their buddies, special interest groups, do favors for "campaign contributors" without consequence. There is this culture where they see themselves as above everyone else.

The only way to fix political interference of the market is for the public to be politically aware and create a political culture that is toxic to questionable behavior. It puts every politician on a field where they have to do well by the people. Even the bad politicians. (Have no choice but to be good).

The biggest folly is the belief that if one votes the "right person" in, everything will be fine. The problem is not the people, its the culture of politics.

Its normal human behavior to act poorly when one believes they can get away with it. You see it with children, teenagers, activists, and politicians.

RE: Thieves will be theives
By WLee40 on 3/20/2014 1:20:03 PM , Rating: 2
Seriously. We need to start a petition from the consumers to the white house or congress to mandate the direct sales model that Tesla is pushing for. The PEOPLE NEED TO SPEAK UP and change things. Our government and lobbying is getting ridiculous!

RE: Thieves will be theives
By Motoman on 3/20/2014 2:54:16 PM , Rating: 2
We don't need to mandate the direct sales model. We need to un-mandate the dealership sales model. Let the auto makers sell stuff however they want.

As for your final point, the only way to fix that is to make lobbying and political parties illegal. Good luck getting that legislation passed.

RE: Thieves will be theives
By WLee40 on 3/21/2014 1:34:54 PM , Rating: 2
I agree. It is a sad situation. Good point on un-mandating!

"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard

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