Car Dealers Sue Tesla, Citing State Franchise Laws

That is ridiculous. A car is a product like any other product that can be sold. Apple sells phones and MacBooks directly to the public. Outlet malls have clothing manufacturers selling directly to the public. The car dealerships is an outdated model and this is a sign that they are desperate. They are just suing because once the Tesla stores prove to be more efficient other car manufacturers will follow suit.

Re: Car Dealers Sue Tesla, Citing State Franchise Laws

#6

Post by datalus » Sat, Nov 10, 2012, 2:06 PM UTC

manaskarekar wrote: post #4

This just sounds like desperate clawing of a doomed business model to me.

It certainly is, quote from the article:

"Let's say consumers really liked buying from a factory store. That would put dealers in a tough spot because they've been saying for years that the franchise system is actually good for customers," [Jeremy Anwyl] says.

I think he hit the nail on the head. I would say the franchise system is only good for the franchise owners, not the customers.

Re: Car Dealers Sue Tesla, Citing State Franchise Laws

#7

Post by thirdtruck » Sat, Nov 10, 2012, 2:10 PM UTC

datalus wrote: post #6

manaskarekar wrote: post #4

This just sounds like desperate clawing of a doomed business model to me.

It certainly is, quote from the article: "Let's say consumers really liked buying from a factory store. That would put dealers in a tough spot because they've been saying for years that the franchise system is actually good for customers," [Jeremy Anwyl] says. I think he hit the nail on the head. I would say the franchise system is only good for the franchise owners, not the customers.

Exactly right, if the number of "straight from the factory floor" stores here offer any indication. They're turning into the record companies of car distribution.

Re: Car Dealers Sue Tesla, Citing State Franchise Laws

#8

Post by dade_ » Sat, Nov 10, 2012, 2:13 PM UTC

The NPR story doesn't seem correct, at least according to my understanding that Tesla show room locations do not sell cars, only provide information about them. A car dealership is a business/location that sells cars, and Elon's argument is that a Telsa store does not sell cars and is therefore not a dealership. Sounds like defensible logic against the franchise lobby-law to me, but according to the NPR story a Tesla store sold a car. The law is ridiculous, but it is still the law.

According to the story: Mark Seegar claimed, "he walked past Tesla Motors' Bellevue, Wash., showroom. It's one of a handful of Tesla's company-owned stores. Within five minutes, he'd put down a deposit for an electric car that costs more than $50,000."

Tesla's site: "As it is, our Product Specialists could not sell you a car today under any circumstances, as Model S is already sold out several months in advance and there is no inventory on site. All they can do is get you to consider placing a reservation." http://www.teslamotors.com/blog/tesla-approach-distributing-...

Re: Car Dealers Sue Tesla, Citing State Franchise Laws

#9

Post by [deleted] » Sat, Nov 10, 2012, 2:20 PM UTC

[deleted]

Re: Car Dealers Sue Tesla, Citing State Franchise Laws

#10

Post by jzd131 » Sat, Nov 10, 2012, 2:23 PM UTC

This law is sure to go away. The fact is that the future of car sales is the internet.

Here is an excerpt from my blog: "According to a Polk and Autotrader.com study, 70% of new and used car buyers use the internet while shopping for their vehicle, with 58% of all buyers listing the internet as the most influential element in their car buying process. But the online car buying process doesn’t stop there. In fact, eBay Motors has sold 4.62 million passenger vehicles solely online since its inception."

See the post here:http://salemove.com/buying-a-car-on-the-internet/