A proposal to restrain Tesla in New York

[geomon666]

Source: Capital New York

Tesla would no longer be able to sell its luxury electric vehicles directly to consumers under a new bill in the New York State Legislature.

Groups representing the state's automobile dealers met with Governor Andrew Cuomo in November to push a bill that would prevent automobile manufacturers from selling their vehicles directly to consumers, public schedules show. Deborah Dorman, president of the Eastern New York Coalition of Auto Dealers, was at that meeting and said Tuesday Cuomo aides told the group the governor would sign the bill if it passes.

She said the bill was designed to protect consumers because it required companies to create a storefront in the state and was not directed at Tesla because it sold electric vehicles. Some environmentalists have claimed the bill unfairly targets electric car manufacturers.

Read more: http://www.capitalnewyork.com/article/albany/2014/02/8540876/proposal-restrain-tesla-new-york

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Trying to kill the electric car, again.

[sharp_stick]

1. I think GA or NC is trying

or has already done the same thing.

Can't do anything to disrupt the easy money from a dealer network.

[ChairmanAgnostic]

2. The history of dealerships is funny

they were first concocted to insulate car makers from negligence and product liability suits
Now they use mandatory arbitration clauses to accomplish the same thing

[yurbud]

25. that makes sense (from their point of view)

[Kelvin Mace]

11. It was pulled from committee

in NC after Musk showed up in Raleigh and literally gave test drives to the governor and the speaker of the NC house.

http://www.engadget.com/2013/06/27/tesla-victory-north-carolina/

[ChairmanAgnostic]

14. can someone say "commerce between the states?"

Talk about a total non-starter of a bad idea.

[Ruby the Liberal]

22. Good luck getting tags and registration

You have to pay sales tax in order to register in most states. Hell, Florida even charges (or used to) a hefty "move from another state" fee. The tax would have been cheaper for me.

[ChairmanAgnostic]

26. Wow, hadn't considered that.

[okwmember]

27. It shouldn't be too difficult.

Most states charge sales tax on vehicles purchased in the last 6 months outside the state. Most also credit the sales tax from the other state so you only pay the difference or none at all if the taxes in the first state are more.

[GeorgeGist]

3. FreeDumb!

[MicaelS]

4. Shit, I hoped only Texas would be this stupid.

I'm a Texan, so I can bash Texas, thank you very much. The fucking Legislature cowed right down to, and has been bought off by the Car Dealers and has prevented Tesla from selling direct. Not that I could afford to buy a Tesla, but it still sucks, and it is wrong.

http://jalopnik.com/how-texas-absurd-anti-tesla-laws-turn-car-buying-into-1451492195

The current iron-clad Texas franchise law is the result of years of lobbying by the powerful and well-connected Texas Auto Dealers Association (TADA), founded and run for 30 years by legendary Texas lobbyist Gene Fondren.

In 2012, dealership interests "invested" more than $2.5 million in the Texas legislative elections, according to the the watchdog group Texans For Public Justice. Sixty percent of Texas lawmakers received checks from TADA in 2012.

Two elderly billionaire car dealers, Tom Friedkin and Red McCombs—the latter is also chairman of the former Blackwater security firm—kicked in more than a million dollars between them.

Tesla, meanwhile, made no direct political contributions.

It just proves that money really is speech.

[okaawhatever]

5. While I don't agree with the concept of forcing a store front, I do wonder how Tesla will insure

parts and repair service is available for car owners. Are they training mechanics to repair them or offering certification for existing ASE mechanics?

[HappyMe]

12. That's what I have always wondered.

What if the thing breaks?



It isn't as if I could afford a Tesla any way.

[SunSeeker]

16. Tesla will come to you at no charge, and bring you a loaner if needed.

http://www.teslamotors.com/service#/tesla-service

Many issues can be resolved remotely, but if your Model S does require in-person attention, you can bring it to a Tesla Service Center, schedule a Tesla Ranger visit, or have your car picked up in exchange for a loaner at no charge with our valet service.

[frylock]

19. regional service centers

http://www.teslamotors.com/service#/tesla-service

[Ruby the Liberal]

21. What about inspections?

I know they repair remote or at service centers - but for those of us in annual inspection states - can that be done by anyone?

[Zorro]

24. Mechanically there would be very little to repair compared to a normal car

There's a stripped down frame of the Model S in Tesla's San Diego showroom that shows the electric motor in the back, optional adjustable air shocks, the steering mechanism up front, and the battery beneath the car. That's about it.

It's mechanically very simple compared to a standard internal combustion engine with all the accompanying belts and hoses.

[sir pball]

6. I don't think it's a nefarious scheme to kill *electric* cars, rather just good ol' protectionism.

I doubt the dealers care whether the vehicle is electric, or petro, or unicorn-fart...as long as THEY get to sell it and make money. I'm sure the "traditional" manufacturers would love to be able to pocket the dealer markup.

[okwmember]

28. Yep. They just want their slice of Tesla's pie.

[Xithras]

7. There's an incredibly easy way to work around these laws.

Tesla should open up dealer franchising at no cost to anyone who wants one, at no charge. As a condition of the franchising, they should require dealers to fully disclose all markups and dealer fees.

After that, Tesla should create a subsidiary offering web services to their dealer networks, including car sales. Allow those dealers to subcontract their online sales tools back to Tesla's subsidiary (something that no state can ban, because doing so would be an imposition on interstate trade and would be unconstitutional). After that, the main Tesla site can simply direct buyers to a list of dealers in their own state who can handle the sales. Cars will continue to be delivered directly.

The free market will do the rest. If a dealer wants to spend a million dollars on a shiny facility and tack on a $5000 per car markup to pay for it, he'll have a hell of a time competing against the guy who spends $400 a month to rent an office the size of a closet, sells only online through HIS DEALERSHIPS website, and only tacks on a few hundred bucks to cover his profit and overhead.

[NobodyHere]

29. Better yet...

Let's not have some stupid useless law that companies have to work around.

[Fumesucker]

8. Damn Republicans are always out to screw the little guy n/t

[valerief]

9. Not trying to kill the electric car so much as to protect the gasoline demand. nt

[EC]

10. Does Tesla even have different models

that a dealership could show? I don't see any need of anything more than an on-line order blank or an office front in big cities needed. So putting a dealership in states as they are requiring is not good business. So what do they want them to do? Have another dealership sell them for Tesla and take a cut? Still not good business.

[JDPriestly]

13. Does New York charge sales tax on the sales of cars.

Seems to me TESLA could make a deal to charge customers and then pay those taxes to New York if that would help clear the cars for sale.

[Progressive dog]

17. NY charges sales tax on cars.

You cannot get license plates or title for a car in NY until the sales tax is paid.

[Nye Bevan]

15. This law is necessary.

Tesla buyers need to be pressured into paying for pinstripes, Lojack, Scotchguard on the seats, and extended warranties, just like buyers of other vehicles.

Oh, and they also need to be subjected to the fast-talking slick-suited finance guy.

I love car dealerships.

[SunSeeker]

18. Cuomo is a corrupt ASS if he signs that piece of shyte. nt

[savannah43]

23. I'm so ashamed--I live in NY.

What most of us really care about is the air--not corporate profits, you greedy cretins.

[Ruby the Liberal]

20. Texas already has that law on the books

Don't be stupid New York. Price will skyrocket if they add another layer to the sales process.

[BanzaiBonnie]

30. Same thing going on in Washington and Oregon

As far as I see, a car company should be able to seek their cars in any way they want.

Oh, perhaps dealerships want to keep their high stakes game rolling. Can't go buy a car without going through a middle man.


Free market, my ass.