North Carolina to ban the Tesla?!

[KingOrfeo]

Apparently some are trying.

From the state that brought you the nation’s first ban on climate science comes another legislative gem: a bill that would prohibit automakers from selling their cars in the state.

The proposal, which the Raleigh News & Observer reports was unanimously approved by the state’s Senate Commerce Committee on Thursday, would apply to all car manufacturers, but the intended target is clear. It’s aimed at Tesla, the only U.S. automaker whose business model relies on selling cars directly to consumers, rather than through a network of third-party dealerships.

The bill is being pushed by the North Carolina Automobile Dealers Association, a trade group representing the state’s franchised dealerships. Its sponsor is state Sen. Tom Apodaca, a Republican from Henderson, who has said the goal is to prevent unfair competition between manufacturers and dealers. What makes it “unfair competition” as opposed to plain-old “competition”—something Republicans are typically inclined to favor—is not entirely clear. After all, North Carolina doesn’t seem to have a problem with Apple selling its computers online or via its own Apple Stores.

Still, it’s easy to understand why some car dealers might feel a little threatened: Tesla’s Model S outsold the Mercedes S-Class, BMW 7 Series, and Audi A8 last quarter without any help from them. If its business model were to catch on, consumers might find that they don’t need the middle-men as much as they thought.

Incidentally—not that he would be in any way swayed by this—I couldn’t help but notice that Apodaca received $8,000 in campaign contributions from the North Carolina Automobile Dealers Association last year, the maximum amount allowed by state law. I’ve reached out to the senator for further comment and will update this post if he replies.

Tesla’s vice president of corporate and business development, Diarmuid O'Connell, told me he’s hopeful that the state legislature will amend the bill so that it doesn’t prohibit Tesla from doing business there. He said the company has already sold 80 cars in North Carolina, mostly through the Web, and has about 60 more orders in the works. It also has plans to build its first showroom in the state next year. The Raleigh-Durham Research Triangle in particular appears to be a hotbed of Tesla interest, O'Connell said, which makes sense given its similarities to Silicon Valley.

In its current form, North Carolina’s bill would be the harshest of a handful of anti-Tesla regulations around the country. In Texas, the company is fighting a law under which the employees of its “showroom” in Austin are not allowed to sell any vehicles, offer test drives, or even tell customers how much the car costs. But at least Texas still lets people buy the car online, which North Carolina’s law would prohibit.

Tesla’s O’Connell rejects the idea that laws prohibiting automakers from selling their cars are designed to protect consumers, as trade groups like the North Carolina dealers’ association claim. He says the franchise-dealer model might work fine for giant automakers, but not for a startup like Tesla—especially since Tesla’s products represent a challenge to the traditional auto industry on which dealerships rely. “How do you sell the future if your business depends on the present?” he asked.

Robert Glaser, president of the dealers association, told the News & Observer that the law prohibiting Tesla sales isn’t just about his industry’s self-interest. Pointing to the Tesla representatives at a recent hearing, he said, “You tell me they’re gonna support the little leagues and the YMCA?”

If that’s the real issue, then I may have some good news for all concerned: I asked O’Connell, and he assured me Tesla would be happy to support the little leagues and the YMCA if that’s what North Carolina requires in order to do business there. Problem solved! Right, Mr. Glaser?

 

[KingOrfeo]

This is really the weird part, though:

In its current form, North Carolina’s bill would be the harshest of a handful of anti-Tesla regulations around the country. In Texas, the company is fighting a law under which the employees of its “showroom” in Austin are not allowed to sell any vehicles, offer test drives, or even tell customers how much the car costs. But at least Texas still lets people buy the car online, which North Carolina’s law would prohibit.

So, if Texas' anti-Tesla agenda is not about the auto-dealerships, then what is it about?!

 

[pointless]

they're probably just worried about the death ray.

 

[KingOrfeo]

they're probably just worried about the death ray.

Oh, that . . .

 

[M. Jordan]

they're probably just worried about the death ray.

I read that they are waiting for the coal burning version.

 

[CeasarBoobage]

And who says we don't have the best politicians money can buy?

Oh wait, they are just acting in the best interests of their voters. It just happens to be a coincidence that the dealership association gave them lots of money.

 

[BotanyBoy]

"FREEDOM!! LIBERTY!!! BAN EVERYTHING AND EVERYONE I DON'T LIKE, IN JESUS'S NAME WE PRAY!! AMEN!!"

Conservatives .....what a bunch of hypocritical shit bags.

 

[Wrong Element]

Auto dealers are a uniformly pro-Republican interest group.

I don't see this getting very far, but I am enjoying the hypocrisy in the meantime.

 

[bronzeage]

Never underestimate the political power of a states New Car Dealer Association.

If a manufacturer was determined to create a corporate sales structure, complete with showrooms and service departments, I can't imagine a better way to generate millions of dollars in free advertising. Everything Tesla does in Texas and North Carolina will now be a new event.

It's not too surprising. An automotive dealership is one of the few remaining businesses where a truly stupid man can be successful.

 

[JAMESBJOHNSON]

I expect Tesla can open 'dealerships'. Plenty of them are all over the place.

 

[warrior queen]

Even though this legislation is aimed at cars, if it goes ahead it will set a dangerous precedent for all direct sales.

 

[BotanyBoy]

Even though this legislation is aimed at cars, if it goes ahead it will set a dangerous precedent for all direct sales.

What could possibly be wrong with legislating away the competition? Don't you believe in a free market system?? Capitalism!!!

Or are you a socialist......

 

[warrior queen]

What could possibly be wrong with legislating away the competition? Don't you believe in a free market system?? Capitalism!!!

Or are you a socialist......

Actually, I'm a consumer.

 

[bronzeage]

Even though this legislation is aimed at cars, if it goes ahead it will set a dangerous precedent for all direct sales.

In the US, car dealerships have always held a sacred cow status among businesses. This is mostly because state laws set the regulations for franchise contracts. For the most part, manufacturers have been content to go along with it, because they can retain a tremendous amount of control over the dealer. A manufacturer is limited by law as to how many franchises it can award in a specific market, so a dealer does not have to worry about competition from across the street. When things are good, a lot of money is made. When things go bad, the money drains away just as fast as it came in.

The last manufacturer to try this idea was American Motors and their Eagle Division. They actually had showrooms built and ready to open when the corporation went under for the last time.

It has nothing to do with green cars or alternative energy.

This is simply another case of conservatives demanding government regulation to protect their vested interests.

 

[BotanyBoy]

Actually, I'm a consumer.

IMPOSSIBLE YOUR WITH US OR AGAINST US!!

NOW ARE YOU GOING TO BE A GOOD CONSERVATIVE AND BAN THIS PRODUCT TO SHOW YOUR SUPPORT FREEDOM, CAPITALISM, FREE MARKET, LIBERTAH!??!?!?!?!

WELL ARE YOU??

If not youz a commie

 

[LiFeNdEaTh]

interesting..

 

[BotanyBoy]

interesting..

not really...the right wing love crying about freedom, liberty, capitalism and the free market.

Until they don't like it anymore.

 

[KRCummings]

Car dealers live up to their stereotype of being corrupt, evil, lying, cheating, petty little ignorant fucks but they are indeed very powerful in their communities and local politics and as a whole carry a lot of influence in national politics. Don't fuck with them unless you are prepared for a real fight.

 

[unregistered]

 

[BotanyBoy]

Car dealers live up to their stereotype of being corrupt, evil, lying, cheating, petty little ignorant fucks but they are indeed very powerful in their communities and local politics and as a whole carry a lot of influence in national politics. Don't fuck with them unless you are prepared for a real fight.

OH hell yea! No bullshit gunz a' blazin' wars have been started over less money....

You can take the legal/political battle to the bank, guaranteed to happen.

 

[tmock]

Democrats will be next