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Direct Sales Banned In New Jersey

AltoidBox

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Jerry Greif

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http://techcrunch.com/2014/03/11/new-jersey-becomes-third-state-to-ban-teslas-direct-sales-model/

Just saw an article about how New Jersey just passed a law to ban the direct sales model that Tesla uses and that is very similar to what it sounds like Elio is planning on doing. Hopefully this doesn't gain traction in many other states or they'll have to rethink their sales strategy.

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Hopefully they don't do anything to screw this up. I f you hear any more let us know so we can write letters. I have written letters to the governors of every state trying to get support for Elio. The best news so far came from New Mexico, I have attached a copy for you to read.
 

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goofyone

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I guess New Jersey's loss will be a good thing for Pennsylvania and New York as thats where Tesla and Elio will be putting their dealerships targeting customers from New Jersey. I do wonder if motorcycle dealers are also included in this rule as they may or may not be.
The good news is that I am sure, even if they don't win all the battles, Tesla will fight as hard as they can against these types of laws or rules which will ultimately also benefit Elio.
 

zelio

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http://techcrunch.com/2014/03/11/new-jersey-becomes-third-state-to-ban-teslas-direct-sales-model/

Just saw an article about how New Jersey just passed a law to ban the direct sales model that Tesla uses and that is very similar to what it sounds like Elio is planning on doing. Hopefully this doesn't gain traction in many other states or they'll have to rethink their sales strategy.

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From what I have heard about Gov. Christy (or is it ie?) it makes me wonder what Tesla did to piss him off. It apparently doesn't take much so maybe they refused to give him a free car. Texas doesn't surprise me. After all they are an oil state. Who knows why Arizona did it. I have never been able to figure out their politics.
 

AltoidBox

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Good point about it technically being a motorcycle. I don't know if the laws in any of the states mentioned differentiate between the two, but I guess if it is currently common for motorcycle shops to be owned by the manufacturers it would make it a lot harder for such laws to be passed that lumped them in.

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goofyone

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I don't know what the stated reasoning is, but I'll bet it's mostly about the 'Big 3' automakers stepping on the neck of perceived competition any way they can.

This is an interesting federal report which explains in detail why these laws are not good:

http://www.justice.gov/atr/public/eag/246374.htm

The report makes many interesting observations but one that stood out was even the "Big 3" automakers appear to have issues with the current franchise system. Ford has tried to change some of the rules in Texas and GM has introduced direct sales of some models in Brazil.
It would appear that these franchise rules are mostly a protectionist move by the dealership associations trying to stomp out competition by paying off the government however if you read the report they explain how in reality removing franchise rules would help many dealerships make more money by putting more dealer emphasis on service and parts which is where they make most of their money now.
 

Craig

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http://techcrunch.com/2014/03/11/new-jersey-becomes-third-state-to-ban-teslas-direct-sales-model/

Just saw an article about how New Jersey just passed a law to ban the direct sales model that Tesla uses and that is very similar to what it sounds like Elio is planning on doing. Hopefully this doesn't gain traction in many other states or they'll have to rethink their sales strategy.

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"The Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey."

Does this sound fermiliar?
 
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Craig

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Does anybody have any suggestions as to what the benefit of this law is?


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ZERO! It's protectionism. It may not be tomorrow, but the car dealership as we know it is on it's way out. They will become showrooms and prep centers.
 
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