Tesla Model S
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  • Tesla Model S

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  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
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  • Tesla Model S
  • Tesla Model S

  • Tesla Model S
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  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
Unlike dealership groups all over the country, one automaker group isn't taking issue with Tesla Motors being able to sell its electric vehicles through company-owned stores in Pennsylvania. But the idea of no limits on its number of stores? That's a problem.

The Alliance of Automobile Manufacturers – which has been neutral on the Tesla dealer fight thus far – is now squawking about a recent law in the Keystone State allowing the California-based company to sell cars through its stores there, Automotive News says. The group doesn't have a problem with the idea in general, but the fact that there's no cap on either the number of stores Tesla can operate or how many cars it can sell there is causing the Alliance to speak out on the issue. And while the Pennsylvania Automotive Association is okay with the new law, the Alliance is alleging a non-level playing field in favor of Tesla. Tesla declined to comment to AutoblogGreen.

The prospect of Tesla skipping over the third-party dealer franchise phase has garnered plenty of recent attention, especially from regulators and dealership representatives. Last month, the Federal Trade Commission (FTC) urged Missouri and New Jersey to change policies that would further prohibit car makers like Tesla from selling their vehicles directly to customers and without a third-party dealership. In April, FTC officials called called the prohibition of direct company-to-customer sales "protectionist" and "bad policy."


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    • 1 Second Ago
  • 12 Comments
      purrpullberra
      • 1 Year Ago
      So these losers have admitted they are in a twisted business relationship. This proves that they know that dealerships are a DISADVANTAGE. Dealerships know they provides no service but are instead a layer of intrinsic loss and parasite-ism. All dealerships should be forced to live in the real world. Let the free market decide if these people deserve to stay in business based solely on whether anyone would willingly choose to buy from them. This means that ALL manufacturers MUST be allowed to sell direct in the US.
      • 1 Year Ago
      Actually requiring Tesla to follow the current Auto Dealership Model is protectionist itself!
      jeff
      • 1 Year Ago
      So basically they are saying that if then have to sell through the crappy dealers Tesla should have to do the same...
      Spec
      • 1 Year Ago
      Get rid of the dealership system. It sucks. Let GM, Ford, Toyota, etc. ALL sell their cars directly if they wish to do so. There was a point to these laws a long time ago. But with the Internet, more automakers out there, cars are more reliable & low maintenance, lots of repair shops, etc. . . . those laws are just not needed anymore.
      • 1 Year Ago
      Manufacturers sell franchises to dealers to generate capital and to engage a sales force. The dealers then invest heavily to purchase vehicles, build facilities, hire employees and engage with the community. If the manufacturers want to sell direct, they should buy out their contract agreements with dealers and employ a new sales model. They can't and won't do this because they know they can't operate more efficiently than a dealer does. Tesla doesn't have dealers - yet - but when they want more than a few stores per state, my bet is they will use dealers.
        • 1 Year Ago
        You don't know Musk
      Electron
      • 1 Year Ago
      Forcing battery electric automakers in a retail model that was tailor made for ICE vehicles is what creates an uneven playing field. For one thing BEVs just don't generate the sort of maintenance revenue to keep franchise dealers funded. Completely and indefinitely exempting battery electric vehicle makers from the silly franchise laws is what will make the playing field even again. Of course these crony capitalist laws should long since have been abolished for all automakers.
      NestT
      • 1 Year Ago
      Hilarious, that the major OEMs now say not having dealerships is a competitive advantage. They have been saying,until now, that they are a source of strength. GM,VW,Ford,Toyota,Nissan,Honda, Hyundai,Fiat Chrysler need legal protection from Tesla LOL. They are the ones that created the dealership model and franchised dealers. Fiat Chrysler just created 86 new Alfa Romeo dealerships yesterday.
        Giraffe Sense
        • 1 Year Ago
        @NestT
        >> Hilarious, that the major OEMs now say not having dealerships is a competitive advantage. Yup. Actions speak louder than words. The OEMs like to say that their dealerships are valuable assets because they're stuck with those dealerships, both through laws and through business relations. So of course they're not going to *say* the truth. But taking this position is an action, not words. The dealerships are liabilities, and the OEMs know it. Interesting point: if the laws are "unfair", why not allow direct sales for all involved? Funny how the OEMs' solution to the unfairness is to keep all concerned in shackles, rather than getting rid of the shackles.
      Greg
      • 1 Year Ago
      Wait, they want the govt to tell a private company how many stores they can have and much of their product they can sell? Imagine if someone tried to do the same to limit how many Starbucks, Safeways, or McDonald's there could be.
      danfred311
      • 1 Year Ago
      They don't mind Tesla, they just don't like what they do... please. Evil scum like the rest
      Jude Chukwuemeka
      • 1 Year Ago
      I don't really feel Tesla, though I seen posts of the brand on www.checklistmag.com I don't think there's anything spectacular about that brand.
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