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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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RE: Businesses fear competition!!!
By Sazabi19 on 3/20/2014 11:36:25 AM , Rating: 2
Exactly on this. I just got me a new car as well. There is a dealer closer to my house for Kia and I went there. I shop for cars for many months before I go get one so I do research. I told the dealer I knew what I wanted and to not mess with me with dealer tricks. He was a pretty straight shooting guy but the management was horrible. The last time I went in there (3rd time) I was looking at a new model (Cadenza) instead of the original I went in for because it was nicer and had a better lease price. After being in there for a few hours I was told that they didn't have the prices right and another manager was going to get a talking to for the prices being incorrect. I showed them on Kia's site where it had the lease cost and he just looked at me blankly. I told them their numbers weren't right and left. The next day the dealer called and said they had a hiccup in the system and that the price was what I was wanting, but now I wanted nothing to do with this dealer. I went to another Kia dealer (several times farther from my house than the original) and told the new dealer that I left the other dealer because they tried to screw with me. All he had to do was be truthful and work with me and if the price was right I would sign. As soon as I walked over I found the exact car I wanted (colors inside and out as well as package) that the other dealer said there were none in the state (it had been there a few weeks at least). They did their usual try to squeeze the price down and introduced me to the finance guy who was trying to "work" my deal, whatever I hate that. Ultimately they go the idea if they didn't lower it I would walk so they got it where I wanted and I bought it. The other dealer called back asking when I would be back in and I told them never, I bought from a competent dealer. I wish I didn't have to deal with any dealer, they are all just sales men trying to get the most out of you in any way they can. They are some of the worst sleaziest people to roam the earth.


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