Car Dealers Keep Up the Fight Against Tesla’s Showrooms – Corporate Intelligence – WSJ

13
Feb

Car Dealers Keep Up the Fight Against Tesla’s Showrooms – Corporate Intelligence – WSJ

The dealers aren’t worried about the small number of sales Tesla generates. Instead, they are concerned with the precedent that it could set for other manufacturers that might like to circumvent the franchise system. Most manufacturers wouldn’t bother though — they need dealers to finance their inventory, cover the costs of dealership expansions and market the product. But even a small number of sales going straight from the plant to a customer could push some dealers over the edge, particularly in rural areas where volumes are low.

Tesla has been successful around the country in shooting down legislation, but less successful getting new legislation to pass. Tesla, is backing a move in Georgia to adjust the law that limits sales of Teslas to 150 per year, pushing for a shift to a new cap of 1,500. Last year, the company tried to change the law in Texas to allow it to have a dealership there, but failed. People in Texas still can buy vehicles online and have them shipped to their home.

Diarmuid O’Connell, Tesla’s vice president of business development, has been the point man on many of the legislative debates, and in each case, it’s clear that the general public is fully behind the Tesla point of view.

via Car Dealers Keep Up the Fight Against Tesla’s Showrooms – Corporate Intelligence – WSJ.

Comments ( 0 )