Governor John Bel Edwards Signs Anti-elio Legislation

[Watashiwah]

A simple solution is to go ahead and make the Elio in Louisiana but not sell them there. The people themselves will change the laws when they ask their "leaders" why they are opposed to a capitalistic idea. Perhaps their leaders are somewhat Socialist and want to control everything. It reminds me of some of the dry counties in those parts. If you wanted a drink, you either drove to a not dry county and maybe brought it back (legal) or you joined a "private" club where as a member you could be served. There are always "loop holes".

The LA Governor may have been lobbied otherwise by Caddo Parish if Elio (and all the local offshoot businesses and beneficiaries) were already employing their citizens and cranking out product.

 

[Rob Croson]

This bill is more of the same dealer franchise protectionism that has gone on in other states, including Ohio and Michigan. It is pushed hard by the NADA (National Auto Dealers Association) to preserve their monopoly on auto sales. NADA has deep pockets, and can afford to buy lobby whatever politicians they need to get their protectionist laws passed.

This bill will not, in any way, stop EM from manufacturing their autocycle in Louisiana. It only prevents manufacturer-direct sales in the state. Tesla has been campaigning hard against these laws, and has gotten them changed in a couple states, but lost the fight in several others.

Such laws are self-harming to the states that pass them. They benefit only the auto dealers. Someone who lives next door to the factory will have to drive out-of-state to buy one, and Louisiana will lose the tax money from the sales. Just like Michigan, when all the people in Michigan that buy Tesla's have to go to Indiana or somewhere else to buy them. How many thousands of dollars a year is Michigan losing in sales tax on Tesla's?

Personally, I like Tesla's approach to this: If you don't let us sell direct in your state, then we won't open factories in your state. If Elio could afford it, I'd recommend the same strategy.

The problem with designating Adessa as a dealer is that state laws regulate dealerships. This requires things like signage, store fronts, show rooms, state-licensed salesmen, service facilities, and licensed mechanics. If Adessa wants to open an Elio dealer franchise, they will have to provide on-site service for Elio's. (Or if not directly on-site, then at least within a reasonable distance, and clearly designated.)

 

[Neal]

The Dealer Associations have a lot of money/power/influence. i remember reading the whole ordeal when New jersey passed a similar law several years back. It's a shame because it really is a bad law and creates a virtual monopoly for dealerships.

 

[Bilbo B]

This bill is more of the same dealer franchise protectionism that has gone on in other states, including Ohio and Michigan. It is pushed hard by the NADA (National Auto Dealers Association) to preserve their monopoly on auto sales. NADA has deep pockets, and can afford to buy lobby whatever politicians they need to get their protectionist laws passed.

This bill will not, in any way, stop EM from manufacturing their autocycle in Louisiana. It only prevents manufacturer-direct sales in the state. Tesla has been campaigning hard against these laws, and has gotten them changed in a couple states, but lost the fight in several others.

Such laws are self-harming to the states that pass them. They benefit only the auto dealers. Someone who lives next door to the factory will have to drive out-of-state to buy one, and Louisiana will lose the tax money from the sales. Just like Michigan, when all the people in Michigan that buy Tesla's have to go to Indiana or somewhere else to buy them. How many thousands of dollars a year is Michigan losing in sales tax on Tesla's?

Personally, I like Tesla's approach to this: If you don't let us sell direct in your state, then we won't open factories in your state. If Elio could afford it, I'd recommend the same strategy.

The problem with designating Adessa as a dealer is that state laws regulate dealerships. This requires things like signage, store fronts, show rooms, state-licensed salesmen, service facilities, and licensed mechanics. If Adessa wants to open an Elio dealer franchise, they will have to provide on-site service for Elio's. (Or if not directly on-site, then at least within a reasonable distance, and clearly designated.)

I've purchased one car out of state. That state didn't collect any tax. I had to pay everything when we registered it in our state. That might vary state by state, though. Even in my state, sales tax varies from county to county (Local Option Taxes). You pay Sales Tax based on the county you're registering it, not where the sale was made. Not sure LA was going to see any sales tax from Elio sales anyway.

What they are missing out on is any of us that were planning on going to Shreveport, tour the factory, and drive our shiny new Elio home. Looks like there are close to 22,000 SILs out there. If 20% of us did the factory tour/pick up, that's 4,500 'tourists' Shreveport won't be seeing. I don't know about the rest of you, but "visit Shreveport" isn't on my Bucket List.

I get that NADA is fighting this all over. I don't see why Rep Carmody would want to sponsor it. Fine, you couldn't go to the plant and get your Hummer. What does that have to do with anything? Dealers may compete on price, but they typically aren't undercutting their invoice cost, not without factory incentives. You're not going to get an Elio or Tesla cheaper from a 'Dealer' than you will from a factory store. Just ain't gonna happen. I used to work for a small manufacturing company. We took our cost and multiplied by 4 to get a sell price. 25% of that was the dealer profit (25% Distributor, 25% Marketing and our profit). I realize the margins on cars (at least small ones) isn't 25%, but the principal is the same. MSRP includes the Dealers Profit. The dealer might elect to give up some of that, but they aren't going to loose money on the sale. No matter what Fast Eddie says. Unless they're making it up on financing.

 

[Trusting]

If you take a look at a map you'll notice Shreveport sits about 5 minutes from the Texas state line. Maybe an Elio outlet right over the line in Texas would work...

 

[KenK]

I don't think Texas was very friendly to the Tesla sales model either... but maybe I am mis-remembering.

 

[Doug McDow]

Ken it is only 50 miles from Shreveport to the Arkansas state line. May be Elio should work on Ark. for a pick up point.

 

[Bilbo B]

Ken it is only 50 miles from Shreveport to the Arkansas state line. May be Elio should work on Ark. for a pick up point.

Arkansas had crossed my mind - put a Marshaling Center there. But from a cost standpoint, that's sort of silly when they have all that space in Shreveport already. Besides, according to this map, at least Tesla can't sell cars in Arkansas or Texas. Elio is a different class vehicle, so the rules may be different for it.

 

[booboo]

Arkansas had crossed my mind - put a Marshaling Center there. But from a cost standpoint, that's sort of silly when they have all that space in Shreveport already. Besides, according to this map, at least Tesla can't sell cars in Arkansas or Texas. Elio is a different class vehicle, so the rules may be different for it.

Did you know they wrote a song about you ?

and the Oklahoma border is about a 2 hour drive from Shreveport.

 

[Elio Amazed]

Did you know they wrote a song about you ?

and the Oklahoma border is about a 2 hour drive from Shreveport.

That was just too weird.
We were indeed a sick society then.