EZZ

Forced franchising is small business welfare from the state. Socialist policy at its best

patgilm

Apple isn't really a great analogy since they sell through a lot of retailers from Best Buy, Target, etc. It's not like you can only buy Apple from Apple stores which is how Tesla currently operates. The one good thing is that at retailers, they will sometimes have sales on Apple stuff where the Apple store won't and sometimes the return policy is better which is why I typically buy Apple stuff at Best Buy.

That being said, I have no issues with Tesla operating without dealers. I couldn't care less as long as the experience is good. Does anyone really have good experiences when buying a car at a dealer?

tex2670

Of course it's not a great analogy. There's nothing analogous.

Is Apple prohibited in any state from direct sales to customers? Or Starbucks? Or McDonald's? Or The Gap? What other industry has state legislatures that prohibit a business from selling their products directly to customers?

Toys4RJill

Tesla not prohibited from selling direct. They are prohibited with competing with their own franchise locations.

Toys4RJill

I don’t get the constant use of Apple. Apple outsources it manufacturing to third party as well so it’s not even close to being the same. They are sell direct and they sell to retailer, and they sell to the carriers. Apple controls their pricing anyways. So they are competing with the Best Buys etc who cannot get the Apple gear for cost, Apple takes a big profit front Best Buy and are left with almost no markup. This is all bad for the consumer.

mmarshall

Says an whole century+ of experience in the auto industry. Independent franchise-dealers became the norm for a reason...it was simply the system that worked best.


I don't see it as protectionism. I myself couldn't care less how auto manufacturers operate their dealerships...but, if I'm going to buy a Tesla, I want a system that works, and is not going to drive the company out of business.

mmarshall

Anyhow, folks, I checked out our local Tesla dealership and did a Model 3 test-drive today. I'll post it in a new thread, since this one doesn't deal with Tesla test-drives.

bitkahuna

iTrader: (20)

again? i don't believe tesla has franchise locations. they're company owned stores, but many states will not permit those company owned stores to sell vehicles because they have legislatures that are bought and paid for by dealer lobbies.

Toys4RJill

In the states that Tesla can sell direct, they cannot franchise out at the same time. Neither can the other manufacturers. Toyota could sell direct if they close all franchise dealers. For those stares that don’t allow direct, that is just too bad. I think there are just a handful anyways.

tex2670

Then let the industry and free market decide, not state legislatures.

tex2670

Tesla doesn't have franchise locations.

https://en.wikipedia.org/wiki/Tesla_...rship_disputes

Tesla isn't looking to have a franchise network of dealers. Direct sales is their model. Period.

Toys4RJill

I think we are not seeing each other’s POV. I am saying that the law prevents Tesla from selling direct and franchising at the same time. This is the same law that applies to all the other brands. Other brands could sell direct if they wanted too as well. I don’t care either way if Tesla sells direct, I just hope they are not allowed to compete with franchisees if they change their mind at some point to thus franchise out.

bitkahuna

iTrader: (20)

how many times do we have to repeat it, they don't have franchise locations, and the term "their own franchise locations" is a contradiction in terms. a franchise is an independent business location with a contract to represent a brand. tesla does not have or want these. what it wants is to be able to sell through ITS OWN stores, and it cannot do that either in the states mentioned because those dealer lobbies don't like a manufacturer owning its own 'dealers' or more correctly, retail locations.

the laws are there to prevent independent new car dealer businesses from having to compete with company owned locations where the latter could always undercut the former.

the tesla situation is DIFFERENT but dealers in states are using their clout to stop tesla using any company owned locations to sell vehicles, even though they're not competing with independent tesla dealers (because there aren't any).

so what tesla's done is made their locations for demo/service only, you can see one, get a test drive, but you have to then order a vehicle online yourself.

Toys4RJill

I think I cleared that up in the post before this one.

It is what it is. It makes no difference to me. Sucks to be Tesla as they are beheld to the large powerful dealer lobbies.

tex2670

But I don't know why you keep talking about Tesla being prevented from direct sales and franchising. They don't franchise, and they are not looking to franchise. They are being blocked, in many states, from any direct to customer sales. Period. Other brands could not sell direct to customers in those states that Tesla cannot, because those states prevent direct auto sales to customers.

I'm not sure you did.