Politicians, Car Dealers Trying To Make It Illegal To Buy A Tesla In North Carolina
from the hating-on-disruptive-innovation dept
Last fall, we wrote about how auto dealers were bitching about the fact that electric car company Tesla sells their cars directly. It has "stores" but you can't buy your cars from those stores, due to antiquated and ridiculous regulations about car sales. Most states have laws that basically say that car companies can't sell directly. These laws serve no purpose other than to protect (often politically powerful) independent car dealers from being disintermediated.In North Carolina, however, they're taking it up a notch. They're basically trying to make it illegal to sell a Tesla in North Carolina at all. About 80 North Carolina residents have already bought one, but they may be the last:
A legislative proposal, backed by the N.C. Automobile Dealers Association, would make it illegal for Tesla, or any other car maker, to bypass dealerships and sell directly in the state. The proposal cuts at the heart of Tesla’s business model: selling luxury cars over the phone or Internet and then delivering them to the front door of high-net-worth customers.The North Carolina State Commerce Committee approved the proposal unanimously.
This is the same thing we see over and over again in other contexts. Companies in an entrenched legacy position trying to use regulations to block disruptive upstarts. There is no good reason for this law other than to block Tesla and to prop up dealerships. It's somewhat disgusting to see politicians actively seek to stamp out innovation.
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Filed Under: dealers, north carolina, regulations, tesla
Companies: tesla
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Half-right
Welcome to cancer-stage capitalism, where corporations hate free markets.
Make no mistake, these anti-competitive laws are not coming from "politicians". They're not smart enough for that. These laws are coming from the people who pull politicians' strings.
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America falling absurdly behind the rest of the world in all fields? Check. But the money is flowing to the usual pockets as always ;)
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You meant to say the Crony States of America. The solution is less monopolies, less patents, less copyright, less regulation in general.
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OMG, "disintermediated"!!! Sounds BAD!
BUT HA! For using it wrongly, EVEN by "economist" usage:
http://www.thefreedictionary.com/Disintermediate
disintermediation
(Economics, Accounting & Finance / Banking & Finance) Finance the elimination of such financial intermediaries as banks and brokers in transactions between principals, often as a result of deregulation and the use of computers
SO I can only guess that Mangler Mike meant "not in on the deal".
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Re: OMG, "disintermediated"!!! Sounds BAD!
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Re: OMG, "disintermediated"!!! Sounds BAD!
http://en.wikipedia.org/wiki/Disintermediation
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Re: Re: OMG, "disintermediated"!!! Sounds BAD!
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Re: Re: Re: OMG, "disintermediated"!!! Sounds BAD!
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Re: Re: Re: OMG, "disintermediated"!!! Sounds BAD!
"This can also happen in other industries where distributors or resellers operate and the manufacturer wants to increase profit margins, therefore missing out intermediaries to increase their margins."
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Re: Re: Re: Re: OMG, "disintermediated"!!! Sounds BAD!
But I left this out because seemed obvious: dealers can't be DIS-intermediated as they're NOT currently "intermediated". That clinches Mike's usage as mangling.
Mike JUST wanted to show off, so trotted out a fancy word. I still say it's wrongly used.
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Re: Re: Re: Re: Re: OMG, "disintermediated"!!! Sounds BAD!
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Re: Re: Re: Re: Re: OMG, "disintermediated"!!! Sounds BAD!
Since it's that later, the dealer is in fact an intermediary between Ford, the manufacturer and you, the buyer.
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Re: Re: Re: OMG, "disintermediated"!!! Sounds BAD!
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Re: Re: Re: OMG, "disintermediated"!!! Sounds BAD!
how very inept of you.
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Mike Masnick posts? Why yes, it is. Bad analogies: It's the Pirate way.
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Mike already knows them so he has an unfair advantage!
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Honestly...
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then, just recently when getting a new car for SWMBO, i purposefully -even though i am a fan of that brand- do NOT go to the same dealer, because we did *NOT* want to deal with that bullshit...
so, different dealer, same bullshit...
fuckers tried to stiff us on an option we had added on, told us lies about when it could be done, didn't follow up, didn't get the parts, didn't set the appointment, FINALLY had to threaten to return the car just within the 30 days, before the useless bastards got the parts and had a THIRD PARTY install it... (again, NOT what was represented to us when we bought it...)
fuckers, i'll say it again:
car salesdroids are only a method to keep con men, liars and sociopaths off the streets... the only thing they are good for, is stuffing sinkholes...
art guerrilla
aka ann archy
eof
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Re: Honestly...
Although Tesla is a bit out of my price range, theoretically this way of selling would allow me to purchase a new car -- otherwise, I am simply a lost sale to them all.
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Re: Re: Honestly...
Must have been a Monday.
"If I can sell this old heap for a couple of grand, I shall buy a new car!"
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1) A car marketed as friendly to the environment and good for fighting global warming.
2) An industry (car dealers) that leans heavily republican, especially with who they donate campaign cash to (a 7 to 1 advantage for republicans).
3) A state that now has a republican governor and republican controlled legislature. And a state not well known for environmentalists being strong politically.
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I read on the internet democrats are immune from all human shortcomings at birth. Why people don't allow the infallible democrats to just run the world just baffles me.
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The thing is that the jobs retained in those industries will stay in that geographic region, the inventive jobs are not necessarily. Since the states interests are heavily based on keeping unemployment down and thereby taxation up, the lack of geographic specificity of internet jobs is a potential threat to their economy!
It is just too easy for lobbyists to put all the blame there.
Since USA cannot in any way compete with South Korea, Singapore and Japan on wages and technological availability, the internet is likely cursed to Hades by any local politician!
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Next on the list
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It's a stupid law - don't get me wrong. And as a North Carolinian, I'm getting exceedingly tired of our boneheaded state legislature. But I don't think this is unconstitutional.
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Legality
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...the neighbouring states.
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Republican obstructionism denies inovative products to its citizens
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Re: Republican obstructionism denies inovative products to its citizens
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Re: Republican obstructionism denies inovative products to its citizens
Tesla loses money on each car it sells, except for the GOVERNMENT grants for Carbon offsets... if you want to call that good business and Engineering, go right ahead but as a long time Automotive Engineer I will still call it bullshit.
And really Tesla's design is such a load of crap from a techincal stand point...
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Re: Re: Republican obstructionism denies inovative products to its citizens
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Re: Re: Re: Republican obstructionism denies inovative products to its citizens
This technical problem has existed since the Brass Era (1890 - 1920) and is caused by the nature of rechargeable batteries.
Steam (some Brass Era cars where steamers) and internal combustion engines can use liquid fuels. The refueling time, thus, is only a few minutes. The effective range of the vehicle is determined by the physical limits of the driver.
For example, some Tesla models have a range of about 250 miles with a recharging time of several hours. Your typical IC powered vehicle has a range of about 350 miles but more importantly a refueling time of about 10 minutes. The IC powered vehicle has effective range of 2 - 3 times that of a Tesla.
Also, it is debatable if electric vehicles are overall better for the environment. They are not emissionless, just the emissions occur at a different location and in the production of the battery.
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You know, just to be neighbourly.
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really?
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Auto dealerships
http://www.npr.org/blogs/money/2013/02/12/171814201/episode-435-why-buying-a-car-is-so-awf ul
It goes into some depth as to why there are dealerships, why states protect auto dealerships..and the like. The blame goes all the way back to the depression. Enjoy.
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If you're going to crib headlines from Reddit, try to remember that there's a good chance that the OP is a fag.
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And by queer, I mean odd.
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I'm sure Tesla's lawyers are about to be paid well.
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First, when that law was made, there was probably only Ford, Chrysler, and GM that people could pick from. Today, you have a lot more imports that can give competition.
Second, even if you make a bunch of dealerships, the companies STILL have a monopoly on their product. They can charge whatever they like to the dealerships, who pass the costs on to the consumer. Having a middleman or not doesn't change that.
Third, you're punishing companies that had nothing to do with those abuses, since they did not even exist at the time. If companies are abusing a monopoly, then antitrust laws should kick in, but only for those companies.
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North Carolina vs. Tesla
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Dirtect Sales Legal Issues
First off, many companies who do direct sales do so from another state. Why? Simply, they avoid state sales tax by not being present in the state. Further, the avoid all the public liability, consume safety, and consumer protection rules for that state, and often for the state they are selling from as well.
Have a problem with your new car? Where do you take it?
There is a whole lot more at play here. I guess you know that, but damn, it's a great (dishonest) headline!
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Re: Dirtect Sales Legal Issues
People buy cars in other states all the time. It's fine.
This is an unnecessary law.
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Re: Re: Dirtect Sales Legal Issues
> title for the car, so that's never avoided.
Not only is not avoided, sometimes it's double-dipped.
I bought a new 4Runner in Texas. Five years later, I moved to Virginia. When I took it to get registered at the Virginia DMV, they wanted me to pay sales tax on the car as if I'd bought it in Virginia. I told them I already paid sales tax on it when I bought it in Texas. They told me that didn't matter, that if I wanted to register it in Virginia, I had to pay the sales tax again to them. I threw a fit because this was a significant amount of money, and once the supervisor came out of the back, and it was obvious to her I was both an attorney and not willing to be screwed, the tax was suddenly 'waived'. I have a feeling they know they have a good scam going and don't want someone who knows the law to ruin it for them, so they waive it for anyone who looks like they might be trouble.
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The solution to this is obvious.
It's amazing what shell companies can do really.
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Can't buy them on the internet?
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You can never stop progress
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RE: RE:RE
Start advertising/publishing your products or iterms freely online at: CynMart.com: Free classified ads in Ghana and beyond . attract more costumers to your company or products.
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