What is Texas and those other states afraid of? A little competition won't hurt.
It’s being hailed as a game changer. It’s the first electric car to win Motor Trend’s Car of the Year; an unprecedented 99 out of 100 rating from Consumer Reports; and now, according to the National Highway Traffic Safety Administration, it’s also the safest car ever.
But if the Model S really is the car of the future, then why has Texas banned its sales in the state and why are lawmakers in several other states trying to do the same?
Why Texas Bans the Sale of Tesla Cars
What is Texas and those other states afraid of? A little competition won't hurt.
From what I read it's not about the cars, it's about Tesla's "direct-sale" strategy. Apparently these states have laws requiring a local franchisee to see automobiles. If the Tesla folks don't like the law, work to get it changed; don't just expect to walk through the door and have the rules bent for you.
From what I read it's not about the cars, it's about Tesla's "direct-sale" strategy. Apparently these states have laws requiring a local franchisee to see automobiles. If the Tesla folks don't like the law, work to get it changed; don't just expect to walk through the door and have the rules bent for you.
From what I read it's not about the cars, it's about Tesla's "direct-sale" strategy. Apparently these states have laws requiring a local franchisee to see automobiles. If the Tesla folks don't like the law, work to get it changed; don't just expect to walk through the door and have the rules bent for you.
It’s being hailed as a game changer. It’s the first electric car to win Motor Trend’s Car of the Year; an unprecedented 99 out of 100 rating from Consumer Reports; and now, according to the National Highway Traffic Safety Administration, it’s also the safest car ever.
But if the Model S really is the car of the future, then why has Texas banned its sales in the state and why are lawmakers in several other states trying to do the same?
Why Texas Bans the Sale of Tesla Cars
What is Texas and those other states afraid of? A little competition won't hurt.
This is not a new tactic at all. Many areas do not accept the use polypropylene piping, some due to the problems of past usage of polybutylene piping (corrosion problems with chlorine in drinking water), but many because it is simply easier for DYI usage and cuts into the need for professional plumbers.
http://www.us.piping.georgefischer....oad&doc_uuid=EB46C94919993E1D4B7A6616023741DE
http://www.nyc.gov/html/dob/downloads/bldgs_bulletins/bb_2011-020.pdf
This is not a new tactic at all. Many areas do not accept the use polypropylene piping, some due to the problems of past usage of polybutylene piping (corrosion problems with chlorine in drinking water), but many because it is simply easier for DYI usage and cuts into the need for professional plumbers.
http://www.us.piping.georgefischer....oad&doc_uuid=EB46C94919993E1D4B7A6616023741DE
http://www.nyc.gov/html/dob/downloads/bldgs_bulletins/bb_2011-020.pdf
Apples to oranges. This has nothing to do with the safety of pipes. This just shows that Texas is not as business friendly as they want people to beleave. They're turning down an increase in tax revenue not to mention the jobs Tesla would create. I don't know what the dealers are so afraid of, I don't think the Texans would be flocking to Tesla to trade in their pick ups for an electric car.
What does that have to do with requiring car dealership franchises?
I find it hard to believe that you of all people are totally ok with companies buying politicians like packs of cigarettes.
What about that Mom and Pop store that sells Levis and Old Navy cloths, they're not franchises. What's wrong with direct sales, it'll save people lots of money. The increase in taxes can only help.
You get upset about all kinds of things but this is just a "meh" to you?
It is not apples to oranges. It is those with a current market share using political pressure to limit competition that would reduce that market share. Selling Teslas in Texas would not "create" anything, for every purchase of vehicle X that is simply one less purchase of vehicle Y, just as every stucture plumbed with PP pipe is one less structure plumbed using another material. What the Texas dealer's are afraid of is setting a direct (manufcturer to public) sales precedent and leaving them, and their larger commissions (profits), out of the loop.
The "service" pprovided by an auto sales dealership is simply that they get a commision (profit) on the sales of cars/trucks. If a factory has direct retail outlets then they will likely "out sell" (out deal?) those that want to add their own markup (commision) to the sale. This sets a precedent allowing any other auto maker to do the same - cut out the middleman "professional auto dealer" and thus their "fair share" of vehicle sales profits.
You don't consider that to be a good thing, do you?
But isn't it fair to me as a consumer to choose whether or not I want or do not want the added value a "professional auto dealer" would bring to the car buying experience and its associated costs?
Not at all. Competition is the consumer's best friend in the marketplace. The worst industry for this nonsense is in real estate, where the sales commissions can be huge for very little sales effort at all. It often takes more salesmanship (time and effort) to sell a modest house in normal (barely decent) condition than to sell a pristine mansion, yet the commision is based on a percentage of the sales price.
Personally, I wouldn't buy a car from the manufacturer - it's hard enough to get satisfaction from the manufacturer through a dealer if you've got a big problem and that guy is in your neighborhood. Try getting some help with your car if you've got to deal with someone several states away.
That said, I don't see that the Big 3, Big 4, Big whatever it is now are going to be overly concerned about competition from a company who's cars start at $60,000. There won't be in my lifetime, nor likely several lifetimes, a big demand for electric cars, and certainly not ones with such a high initial output and no history of lifespan for the product. You can buy four $15,000 cars that will each last you up to ten years, depending on your driving habits, and that's about 40 years of driving.
Cars like the Tesla's are for lottery winners and the idle rich, not for people who drive to and from work and/or have families to squire around to non-stop sports and other practices daily.
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