GM bullying Tesla

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Discussion

ZesPak

Original Poster:

24,428 posts

196 months

Wednesday 22nd October 2014
quotequote all
So, I couldn't find a thread regarding this but this has been going on for a while: GM opposing to the Tesla model (direct sales no dealers), and actually managing to win these cases in some states.

What am I not getting? Isn't this like Walmart suing Amazon and getting away with it?

I know there are some things we find ridiculous over here, but I really can't grasp what's going on other than that some Governors and officials are getting a couple of new cars this year.

Article said:
Michigan Gov. Rick Snyder signed a measure Tuesday that blocks Tesla Motors Inc. from selling cars directly to consumers in the state, siding with auto dealers and General Motors Co. even after other Michigan manufacturers advocated for the Silicon Valley company.
http://online.wsj.com/articles/gm-urges-michigan-gov-to-sign-anti-tesla-bill-1413912419

PanzerCommander

5,026 posts

218 months

Wednesday 22nd October 2014
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Is it just me or is that really stupid. A dealer franchise is essentially the manufacturer choosing to sub contract the sales of its vehicles to somebody else and paying them to do it is it not?

Rather than dealing with the sales and after sales support themselves?

Sounds like the powers that be are taking a bung from GM.

Tesla are choosing to take on the sales/after sales themselves to cut out the middle man and save a bit of money.

Chicane-UK

3,861 posts

185 months

Wednesday 22nd October 2014
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They can't beat them with technology, so have to beat them using more underhanded methods. It's extremely sad.

kambites

67,561 posts

221 months

Wednesday 22nd October 2014
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Surely there's got to be more to this than that quote implies? Even in the US, there generally has to be slightly more justification for quite such blatent state bias.

Chicane-UK

3,861 posts

185 months

Wednesday 22nd October 2014
quotequote all
kambites said:
Surely there's got to be more to this than that quote implies? Even in the US, there generally has to be slightly more justification for quite such blatent state bias.
This has been widely reported for quite a while. Even Elon Musk has written about it in the past - see here:

http://www.teslamotors.com/blog/people-new-jersey

kambites

67,561 posts

221 months

Wednesday 22nd October 2014
quotequote all
So they've basically legislated against a company based outside the state selling its products within the state? Or does the bill explicitly target the automotive industry? Surely if it's the former, that will affect all sorts of things?

Snollygoster

1,538 posts

139 months

Wednesday 22nd October 2014
quotequote all
I agree Tesla should be allowed to sell directly, but I can empathise with why they have blocked it. Ultimately if all dealers started selling directly to consumers online, that's a substantial amount of job losses for new car sales people which is what I assume they are trying to safeguard.


Marc p

1,036 posts

142 months

Wednesday 22nd October 2014
quotequote all
Snollygoster said:
I agree Tesla should be allowed to sell directly, but I can empathise with why they have blocked it. Ultimately if all dealers started selling directly to consumers online, that's a substantial amount of job losses for new car sales people which is what I assume they are trying to safeguard.
This. The law that manufacturers cannot sell direct to the public has been around for a long time in a few states, this is nothing new, but I think the government want to roll this out through other states to safeguard jobs.

ZesPak

Original Poster:

24,428 posts

196 months

Wednesday 22nd October 2014
quotequote all
Marc p said:
This. The law that manufacturers cannot sell direct to the public has been around for a long time in a few states, this is nothing new, but I think the government want to roll this out through other states to safeguard jobs.
Nice.
They should have done it here much earlier, my family would still have the grain mill.

Odd that they didn't ban those self-service point of sales in the supermarkets yet.

skyrover

12,671 posts

204 months

Wednesday 22nd October 2014
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Phones4U anyone?

The Don of Croy

5,998 posts

159 months

Wednesday 22nd October 2014
quotequote all
This is Michigan, yes? Home of GM, Ford, and Chrysler...wonder who the Governor talks to when it comes to matters of automotive industry commerce...

If other states follow suit, then that's an issue.

But, if Tesla sell a car to a punter in Alaska/Hawaii/Montana/Florida and cannot provide the necessary service, does the punter also sue the state for allowing such poor practice?

How did direct sales work for Daewoo?

swisstoni

16,997 posts

279 months

Wednesday 22nd October 2014
quotequote all
Funny how there are so few car manufacturing companies in a country the size of the USA. This could be an indication as to how that has come about.

ZesPak

Original Poster:

24,428 posts

196 months

Wednesday 22nd October 2014
quotequote all
swisstoni said:
Funny how there are so few car manufacturing companies in a country the size of the USA. This could be an indication as to how that has come about.
Watch "Flash of Genius", great movie.
Instantly wants you to never buy a Ford again.

k-ink

9,070 posts

179 months

Wednesday 22nd October 2014
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Tesla may have the private car industry to themselves in a couple of decades. Assuming they continue as they have done. Whilst GM will probably be dead and buried. It is probably just an attempt to delay the inevitable.

otolith

56,121 posts

204 months

Wednesday 22nd October 2014
quotequote all
Land of the free.

BigBen

11,641 posts

230 months

Wednesday 22nd October 2014
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ZesPak said:
swisstoni said:
Funny how there are so few car manufacturing companies in a country the size of the USA. This could be an indication as to how that has come about.
Watch "Flash of Genius", great movie.
Instantly wants you to never buy a Ford again.
Seconded, a great film. However it is unfair to single out Ford, the other US makers were just as guilty.

Swanny87

1,265 posts

119 months

Wednesday 22nd October 2014
quotequote all
k-ink said:
Tesla may have the private car industry to themselves in a couple of decades. Assuming they continue as they have done. Whilst GM will probably be dead and buried. It is probably just an attempt to delay the inevitable.
This. With the exception of the latest generation Corvette, the new Cadillac models and the latest Astra VXR; GM make some utterly shocking cars, that I'm surprised have been allowed to be put on the road. The nub of this litigation against direct sales is just jealously. Jealousy that Tesla can make a viable electric car where GM failed quite badly. I must have seen about 1 or 2 of those Amperas on the road in the last few years, yet in the last few weeks I have seen about twice the amount of the Tesla Model S.

And lets just remember that if it wasn't for a massive bailout by the US government, GM would not exist today.

otolith

56,121 posts

204 months

Wednesday 22nd October 2014
quotequote all
Swanny87 said:
The nub of this litigation against direct sales is just jealously.
I don't think it's personal, it's just business played dirty.

ZesPak

Original Poster:

24,428 posts

196 months

Wednesday 22nd October 2014
quotequote all
Next thing we know Tesla and other "green" car manufacturers are going to get sued by the oil companies and petrol stations for loss of jobs.

Richyboy

3,739 posts

217 months

Wednesday 22nd October 2014
quotequote all
Why do these old companies expect government to step in and help them out? Not exactly a free market.