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The bigger problem for the dying industries is that they're taking on companies that at their core solve problems and disrupt. As opposed to being pathetic and continuing to prolonge the inevitable, they should focus their efforts on product development/sales channels. Or maybe even become a little innovative themselves.
http://www.bloomberg.com/news/2012-07-24/bmw-bets-mouse-clic...
(c) It shall be deemed a violation of subsection (a) of section 3 for a manufacturer, distributor or franchisor representative:
...
(10) to own or operate, either directly or indirectly through any subsidiary, parent company or firm, a motor vehicle dealership located in the commonwealth of the same line make as any of the vehicles manufactured, assembled or distributed by the manufacturer or distributor.
http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/...
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…
Now how much would you bet that this argument will win this case for Tesla?
Think about it. How can a government own a car company then legislate against other car companies? I know it's federal gov buying and local gov ruling in this example, but it's a slippery slope nonetheless. It would be like mark Cuban becoming the commissioner of the NBA while still the owner of the mavs. Anyone here think that would end well?
How can such a law be anything but bad for an economy?
Every now and then we see old laws being used by dying industries take a plunge at stopping innovation. Uber & Air B'n'B are two others that come to mind. The bigger problem for the dying industries is that they're taking on companies that at their core solve problems and disrupt. As opposed to being pathetic and continuing to prolonge the inevitable, they should focus their efforts on product development/sales chann…
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.
Every now and then we see old laws being used by dying industries take a plunge at stopping innovation. Uber & Air B'n'B are two others that come to mind. The bigger problem for the dying industries is that they're taking on companies that at their core solve problems and disrupt. As opposed to being pathetic and continuing to prolonge the inevitable, they should focus their efforts on product development/sales chann…