Tesla Battles Dealer Associations.

[BlueStreak]

Ohio;

http://abcnews.go.com/US/wireStory/ohio-auto-dealers-fight-tesla-sales-model-22940267

New Jersey;

http://www.philly.com/philly/blogs/inq-phillydeals/Tesla-Gov-Christie-and-his-auto-cronies-want-to-run-us-out-of-NJ.html

Personally, I hope Tesla wins. Not only do I hope Tesla prevails, but it would be nice to see other manufacturers follow suit. I see nothing wrong with a manufacturer selling products directly to the customer. In fact, it only makes sense and cuts out a very annoying (and greedy) middleman.

Holy Shit, I'm agreeing with Kasich. That's twice this week I've agreed with an asshole Republican. Somebody give me a Xanax......QUICK!

Dave

[piece-itpete]

No Xanax for you!

http://ts1.mm.bing.net/th?id=HN.608005955734471843&pid=1.7

:D

I hope they win too.

Pete

[merrylander]

In this nation of middlemen, never happen.

[Rajoo]

Chris Christie pulls the plug on Tesla - and his political career (Mulshine)

http://www.nj.com/opinion/index.ssf/2014/03/chris_christie_tesla_bridgegate.html

This is actually last week's news here in the Bay Area. The Tesla plant is about five miles from my company and I drive by there every day. Tesla has become "the" status car here. Some highlights from the linked piece.

"On the right, the National Review said that our governor "slapped free markets across the face."

"In the middle, a headline in the California-based magazine Wired read, "New Jersey Bans Tesla to Ensure Buying a Car Will Always Suck." *

"And on the left, the Daily Kos accused Christie of being "in the pocket of the Koch Brothers and/or their Big Oil pals," adding, "Maybe Christie figured he’s on his way down the drain, so he might as well do one last solid for his puppet masters."

This will be very interesting.

*An AK member works for Wired magazine.

[JJIII]

I agree the manufacturers ought to be able to sell direct, but that brings up a problem. What does the buyer do for service?

[piece-itpete]

... "New Jersey Bans Tesla to Ensure Buying a Car Will Always Suck." [/B] *

......

LMAO!!

Pete

[merrylander]

I agree the manufacturers ought to be able to sell direct, but that brings up a problem. What does the buyer do for service?

There are independent mechanics and service garages in fact we take our Impalas to one just up the road from us.

[Boreas]

I agree the manufacturers ought to be able to sell direct, but that brings up a problem. What does the buyer do for service?

Certify independent garages as "factory authorized" and allow them to submit warranty claims on behalf of the customer.

John

[Rajoo]

Bingo. Independent garages would do a better job of customer service since their business is dependent on word of mouth. If you don't like one, there is another down the street. Small business typically do a better job of keeping the costs low.

Dealerships have territories and fixed repair charges to eliminate competition among dealerships. You do get free car vacuum & wash though. :D

[merrylander]

Yeah except that they wash it but don't dry it.

[icenine]

hmmmmmm
how much stimulus to the economy do these dealerships provide?


there is always a cost involved with "progress"

[icenine]

To wit: I can haggle at the dealer over the price of a car and financing.
I cannot haggle over the price of a new Powermac at the Apple Store.

How long would it be before Ford,Honda,Chevy,Toyota,etc, to began to set prices...........
what if they price fixed?

food for thought
in the end it would probably cost the same direct as from a dealer.

Do not get me wrong I dislike the guy in financing with the mustache too lol

[JJIII]

There are independent mechanics and service garages in fact we take our Impalas to one just up the road from us.

Certify independent garages as "factory authorized" and allow them to submit warranty claims on behalf of the customer.

John

How long is it going to be before there is a workable number of independent shops trained in the new technology? Who will pay for the training?

I'm all for cleaning up the planet, I'm just throwing questions out there. The established manufacturers have network that took a long time to build. I would hate to be in Tesla's position.

[finnbow]

How long is it going to be before there is a workable number of independent shops trained in the new technology? Who will pay for the training?

I'm all for cleaning up the planet, I'm just throwing questions out there. The established manufacturers have network that took a long time to build. I would hate to be in Tesla's position.

Indeed. Not all shops will work on hybrids. In fact, not many do due to concerns about electric shock, arcing, etc.

http://www.hybridcars.com/preferred-hybrid-shops/

http://www.autoinc.org/archives/2005/june2005/mech.htm

[BlueStreak]

I agree the manufacturers ought to be able to sell direct, but that brings up a problem. What does the buyer do for service?

Why can't the manufacturer do service? Mechanics at the dealership must go to the manufacturers for training, anyways.

Dave

[BlueStreak]

Certify independent garages as "factory authorized" and allow them to submit warranty claims on behalf of the customer.

John

Yep, there is that too.

Dave

[BlueStreak]

How long is it going to be before there is a workable number of independent shops trained in the new technology? Who will pay for the training?

I'm all for cleaning up the planet, I'm just throwing questions out there. The established manufacturers have network that took a long time to build. I would hate to be in Tesla's position.

It would be to Teslas advantage. They are starting with few or no dealerships in many states. It's a different story with established manufacturers. Which might be where some of the flack is coming from.

Nevertheless, it can be done and I believe it should be done. I think it is a great idea.

Dave

[icenine]

Well if you are in an accident and it is not your fault...it is cool to take your car to the dealer to get it fixed on the other guy's dime...but maybe that has changed to. I did that when I got T-boned in Isle of Palms by a drunk driver.

[BlueStreak]

What makes you think you would no longer be able to do that?

Dave

[icenine]

direct sales no showroom right? no local place for body work?
If you own a Tesla but are far from the factory and you want it fixed by them?

Or is Tesla going to build stores like Apple?
then add auto service and repair.

then you just have another showroom owned by a factory instead of a dealer.
over time prices will be the same

[Boreas]

direct sales no showroom right? no local place for body work?
If you own a Tesla but are far from the factory and you want it fixed by them?

Or is Tesla going to build stores like Apple?
then add auto service and repair.

then you just have another showroom owned by a factory instead of a dealer.
over time prices will be the same

That's what's happening, I believe. Also factory owned service centers.

http://www.teslamotors.com/findus

John

[JJIII]

Why can't the manufacturer do service?

How are we to get the car to the manufacturer?


Mechanics at the dealership must go to the manufacturers for training, anyways.

Dave

There is no "Dealership. Remember... "Direct Sales".

[JJIII]

What makes you think you would no longer be able to do that?

Dave

Look at the link John provided in post #21. Are you going to drive (or have towed) a wrecked/faulty car several hundred miles to a "Factory Authorized Service Center"?

All I'm saying is that Tesla has a long, steep, uphill road to climb in a shaky economy. I wish them the best of luck but I'm not investing just yet.

[Rajoo]

My intuition says that Tesla will only attract buyers in metropolitan areas. This from Forbes:
"Upstart automaker Tesla Motors TSLA +1.27% won’t sell as many cars this year as Chevrolet sells in 3 days, but its early success with the all-electric Model S sedan is already keeping the competition up at night." (2013)

http://www.forbes.com/sites/markrogowsky/2013/08/24/numbers-dont-lie-tesla-is-beginning-to-put-the-hurt-on-the-competition/

So I don't see them needing more than say twenty sales/service centers for now. 100,000 units are projected for 2016.

[piece-itpete]

Ice I see what you be sayin', but Tesla is a niche market company that will never have dealers everywhere (selling just their current product anyway). They did just build a recharge station near me though.

Pete

[icenine]

I think we need those wallet-draining showrooms Pete so we feel better when we drive around in used vehicles that cost half as much.

There is a 2009 Toyota Corolla across the street from the clinc right now for 10k$ but it has 76,582 miles...I am tempted to ask for 1k off the price....

that car can probably go 200,000 more miles

[CarlV]

Look at the link John provided in post #21. Are you going to drive (or have towed) a wrecked/faulty car several hundred miles to a "Factory Authorized Service Center"?

All I'm saying is that Tesla has a long, steep, uphill road to climb in a shaky economy. I wish them the best of luck but I'm not investing just yet.

I can guarantee that here in California "Factory Authorized Service Center" is any licensed automotive repair business.

Now having warranty repairs performed for free under warranty is a different story.


Carl

[Boreas]

I can guarantee that here in California "Factory Authorized Service Center" is any licensed automotive repair business.

Now having warranty repairs performed for free under warranty is a different story.


Carl

Yes, in the "bad old days", I believe car makers would void your warranty if you had any repairs done outside the system during the warranty period. I think that's illegal everywhere now.

I was speaking only of (free) repairs done under warranty. That still requires having the work done at a dealer or a factory repair facility of some sort. This is pretty legitimate, really, because it insures that the work is performed by a factory-trained tech and that the parts used are OEM.

John

[piece-itpete]

And the manufacturers squeeze the dealers lowering overall warrantee costs ;)

Pete

[Boreas]

And the manufacturers squeeze the dealers lowering overall warrantee costs ;)

Pete

Yes, there's a two-tiered labor rate, customer rate and warranty rate. Also, warranty parts are reimbursed at a lower rate, I think above cost but not by much.

John

[BlueStreak]

There is no "Dealership. Remember... "Direct Sales".

There are dealerships and service centers......the factory owns them.

It only a matter of ownership.

Dave

[BlueStreak]

My intuition says that Tesla will only attract buyers in metropolitan areas. This from Forbes:
"Upstart automaker Tesla Motors TSLA +1.27% won’t sell as many cars this year as Chevrolet sells in 3 days, but its early success with the all-electric Model S sedan is already keeping the competition up at night." (2013)

http://www.forbes.com/sites/markrogowsky/2013/08/24/numbers-dont-lie-tesla-is-beginning-to-put-the-hurt-on-the-competition/

So I don't see them needing more than say twenty sales/service centers for now. 100,000 units are projected for 2016.

Right. At the moment, the price of the vehicles will keep the sales and service centers located near affluent areas. In time all of that could change with increased volume.

Dave

[BlueStreak]

Ice I see what you be sayin', but Tesla is a niche market company that will never have dealers everywhere (selling just their current product anyway). They did just build a recharge station near me though.

Pete

So, they own recharge centers too? You know this all could just be to get the product out there and the ball rolling, with franchising to come at a later date.

Bear in mind, they are dealing with resistance not only from automotive competitors, but the petroleum industry as well. Maybe they only way to prove viability is to push expansion in the short term rather than wait for an unwary market? When faced with such powerful adversaries, you'd have to stay ahead of their efforts to demean and ridicule your product.

Risky? Oh, absolutely. However......See my signature.

Dave

[piece-itpete]

Well the current Tesla starts at $59,900 so even if they brought the price down appreciably I doubt they'll be big sellers in Cleveland city limits anytime soon :o

Pete

[piece-itpete]

So, they own recharge centers too? You know this all could just be to get the product out there and the ball rolling, with franchising to come at a later date.

Bear in mind, they are dealing with resistance not only from automotive competitors, but the petroleum industry as well. Maybe they only way to prove viability is to push expansion in the short term rather than wait for an unwary market? When faced with such powerful adversaries, you'd have to stay ahead of their efforts to demean and ridicule your product.

Risky? Oh, absolutely. However......See my signature.

Dave

The 'pumps' are Tesla branded, if that means anything. The next time I'm there I'll get out and read the sign.

Love the signature!

Pete

[piece-itpete]

Yes, there's a two-tiered labor rate, customer rate and warranty rate. Also, warranty parts are reimbursed at a lower rate, I think above cost but not by much.

John

I belong to a couple sites that mechs frequent. Here's an example: on the latest GM recall (a new one involving SRS lights on light trucks/SUVs) GM will pay the dealer between .3 and .5 hours to: remove both front seats, solder 8 connections, 'build new connectors' (whatever that actually means), and reinstall the seats.

I know those guys are WAY faster than me, but really??

Pete

[BlueStreak]

Well the current Tesla starts at $59,900 so even if they brought the price down appreciably I doubt they'll be big sellers in Cleveland city limits anytime soon :o

Pete

True. But, looking forward I'm hoping technology will advance until electric cars become more competitive and that won't happen unless companies like Tesla continue to fight the good fight. Then, the bigger manufacturers will get on board and scale will bring prices down. Could take a few more decades, unfortunately. It's a shame to note that we could have already been there, if not for the massive resistance of past decades. :(

Dave

[JJIII]

There are dealerships and service centers......the factory owns them.

It only a matter of ownership.

Dave

OK, thanks.

[piece-itpete]

Batteries have been inadequate. Have you seen how Tesla does it?

http://carseatblog.com/wp-content/uploads/2012/11/Tesla-battery-pack.jpg

They wire 6,831 (laptop? Cellphone?) batteries together to do it.

Pete