Ohio Attempting To Stop Tesla From Selling Cars, Again

[ElNono]

"Man the automotive dealer associations don't like Tesla. Remember that time the Ohio dealers attempted to block Tesla from selling its electric cars in in the Buckeye State. Now, it's happening again. The car dealers are once again pushing legislation that would keep Tesla from selling cars in Ohio (http://www.greencarreports.com/news/1090255_ohio-dealers-renew-assault-against-tesla-motors-sales). Senate Bill 260 would prohibit the Ohio Bureau of Motor Vehicles from issuing car-dealer licenses to auto manufacturers (http://www.legislature.state.oh.us/bills.cfm?ID=130_SB_260). Since Tesla owns and operates its own network of 'dealerships' (aka galleries), this would make it so the automaker couldn't acquire a car-dealer license. Section 11 of the bill lists 'a manufacturer... applying for license to sell or lease new motor vehicles at retail' as one of the types of organization ineligible for a dealership license (http://www.cleveland.com/open/index.ssf/2014/02/auto_dealers_push_legislation.html). On top of all this, the language isn't on the Senate floor as a standalone bill. No, it's inserted as an amendment to Senate Bill 137 which is an unrelated bill requiring Ohio drivers to move to the left while passing roadside maintenance vehicles. Is this yet another slimy tactic to try and undercut the new kid on the block?"

[AntiChrist]

Are those the ones prone to spontaneous combustion?

[ElNono]

Not sure, but if it's a bad product, you would think dealerships wouldn't need these kind of shenanigans...

[Winehole23]

What is revolutionary, however, is Elon Musk's desire to build a retail network free from the franchise-dealer monopoly. And, despite some setbacks this week (http://www.bloomberg.com/news/2014-03-18/christie-blames-n-j-legislature-for-tesla-ban-on-direct-sales.html), he might just succeed. By attacking the gatekeepers of automotive retail, Tesla is promising not just a unique sales and service experience for its well-off customers, but a more liberalized, competitive market for all car buyers. In this sense, Tesla does indeed hold the promise of a better -- if not greener-- future.


The dealers themselves, of course, are none too pleased. And they have one of the best-funded and most active political lobbies in the U.S., even securing for themselves an inexplicable exemption (http://www.nytimes.com/2010/06/23/business/23regulate.html) from Consumer Finance Protection Bureau oversight. Worse, Tesla is facing not just a federal-level battle with this implacable foe, but a state-by-state fight as well, with New Jersey and Texas becoming the latest to ban direct sales.


After all, car dealers have everything at stake. Unlike most developed markets, the U.S. is built on a system that allows new vehicles to be sold only by franchised dealers. This not only bars makers such as Tesla from cutting out the middleman and selling directly to consumers, it prevents new players from entering the market and providing new sources of competition. As Alex Tabarrok points out in a excellent post at Marginal Revolution (http://marginalrevolution.com/marginalrevolution/2014/03/tesla-versus-the-rent-seekers.html?utm_content=buffer4170f&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer), the initial benefits of the dealer franchise system have long since given way to rent-seeking,inefficiency and unintended consequences.http://www.bloombergview.com/articles/2014-03-20/tesla-can-topple-the-car-dealer-monopoly

[boutons_deux]

Not sure, but if it's a bad product, you would think dealerships wouldn't need these kind of shenanigans...

"shenanigans" is the fundamental behavior of the capitalists' "free market"

[baseline bum]

LOL the faggots bitching about corruption in DC not seeing how bad it is in Austin.

[boutons_deux]

vehemently free-market RED STATE Utah's for-sale Repug judges block Tesla

Utah Supreme Court ruling bars direct sales of Teslas through a subsidiary

State regulators can prohibit an auto manufacturer from having an interest in dealerships.


https://arstechnica.com/cars/2017/04/utah-supreme-court-ruling-bars-direct-sales-of-teslas-through-a-subsidiary/

[spurraider21]

so-called judge tbh