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So from there it seems that the situation you were referring to with the undercutting of current dealers doesn't exist. So from there I'm seeing the Tesla issue as being lesser than it seemed before. Maybe its that it would set a "precedence", but like you said it would be pretty tough for the big guys to make any more money than they are if they wanted to go through the whole process of direct sales as opposed to what happens now.
You can't really carry much inventory in a mall. I could see a decent workaround being that Tesla would be allowed to sell out of a mall but the cars are delivered at the dealership. The dealership would get a fee for the delivery process.
Think of dealerships as being the distribution network for the automobile manufacturers. They represent the manufacturer (GM, Ford, Toyota, Honda, etc) and handle the sales and servicing of the product.
The old-school model is just that -- the manufacturer builds the cars in a given location (say, Detroit), and ships them to each dealership. Some are purely inventory, and some are pre-sold cars that were ordered by the customer at the dealership. It wasn't the best model at one time, because GM was famous for overproducing cars (in order to satisfy shareholders, of which I am one) and then sticking the dealers with them. At certain times of the year, dealer inventories would rise, and in order to sell the cars, the dealerships would resort to all kinds of sometimes-questionable tactics.
A parallel to this is the computer business. Once upon a time, Compaq, HP, IBM, etc sold notebook computers. But they didn't want to be in the business of selling directly to the consumer, so they sold them through resellers, such as Best Buy, CDW, etc. You couldn't call up Compaq and order a computer from them.
Then Michael Dell discovers, while still in college, that he WANTS to sell directly to the consumer. Dell cut out the middleman (the reseller) and were able to sell you EXACTLY the computer you ordered. That's basically what Tesla wants to do, and it's making billionaire auto dealership tycoons somewhat nervous.
Make sense?
You can send your computer back by UPS if something goes wrong. You can't do that with a car. You have to have someone you can physically take it for repair.
Do the LWNJ's here seriously believe that a dem NJ governor would act any differently? An established company is always going to seek out protection against an "unfair" advantage against the upstart.
Do the LWNJ's here seriously believe that a dem NJ governor would act any differently? An established company is always going to seek out protection against an "unfair" advantage against the upstart.
Another example on how Republicans aren't anymore free market than Democrats and in many ways they are even more restrictive. Whatever happened to supporting free markets?!
And if they let Tesla flout the franchise laws that all other car manufacturers operate under (which, by the way, were created to promote more market competition by preventing a manufacturer oligopoly), I'm sure you'd be here breathlessly telling us how they play favorites. Or do you think Republicans should play favorites? Or should they do it only for your favored players like Tesla?
If you don't like the franchise laws, then advocate for their reform or repeal. But don't wax outrage that Republicans expect newcomers to an industry to abide by the laws that govern said industry just because you like the affected company and wish they didn't have to abide by the same rules as everyone else in the industry.
Now, back to the subject at hand - the existing dealerships who have such faith in the free market, they call in their tame Republican buddies to squash this annoying competitor through legislation. Now, for those of us who see the Republican Party as the party of defending the already entrenched monied interests, this isn't surprising. But you have to admit, it's a bit funny to see them fight like hell against that free market they claim to love so much.
Another example on how Republicans aren't anymore free market than Democrats and in many ways they are even more restrictive. Whatever happened to supporting free markets?!
I guess he has never said he was Conservative, has he.
And if they let Tesla flout the franchise laws that all other car manufacturers operate under (which, by the way, were created to promote more market competition by preventing a manufacturer oligopoly), I'm sure you'd be here breathlessly telling us how they play favorites. Or do you think Republicans should play favorites? Or should they do it only for your favored players like Tesla?
If you don't like the franchise laws, then advocate for their reform or repeal. But don't wax outrage that Republicans expect newcomers to an industry to abide by the laws that govern said industry just because you like the affected company and wish they didn't have to abide by the same rules as everyone else in the industry.
Traditional automakers have granted franchises. The regulations were put in place were to prevent automakers from opening a store to directly compete with their franchisees.
Tesla has issued NO franchises, so the purpose of the law doesn't apply to them, which is why the vast majority of states have no problem with it. They aren't selling franchises and then directly competing with their franchisees.
This is really not a party issue at all. Christie is a politician. Which means he succumbs to political pressure. Republicans bend over just like Democrats do when they get pressure from important (at least perceived to be) groups. Car dealers in big states are powerful. They don't want competition from Tesla, or any other dealer owned by a manufacturer.
This is really not a party issue at all. Christie is a politician. Which means he succumbs to political pressure. Republicans bend over just like Democrats do when they get pressure from important (at least perceived to be) groups. Car dealers in big states are powerful. They don't want competition from Tesla, or any other dealer owned by a manufacturer.
So much for Christie not being a status quo politician. It's quite disappointing because before the bridge fiasco, I kinda liked him. Now he is just an obnoxious politician in my eyes.
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