Electric Car Maker Tesla Opens Store In Miami Mall
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: Nicholas Craan (L) and Francesco Campoy look at a Tesla motor company car in a dealership at the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: People walk out of a Tesla motor company dealership in the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: Gaelle Freer and her son Alexander LeVaillant Freer look at a Tesla motor company car in a dealership at the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: Marcelo Jaramillo, assistant store manager, (2nd R) shows a Tesla motor company car in a dealership at the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: People walk past a Tesla motor company dealership in the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: Tesla motor company accessories hang from the wall in the recently opened dealership in the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: People walk in a Tesla motor company dealership in the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: A Tesla motor company car is parked in a dealership in the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Tesla
  • The Tesla showroom is shown at the Washington Square Mall, Friday, July 20, 2012, in Portland, Ore. Tesla Motors only has 24 stores in the world, and now one of them is at Washington Square Mall in Portland. The company produces electric cars and hopes their product will be a hit with eco-conscious Oregonians. The cars can go from zero to 60 mph in less than six seconds, all without a drop of gasoline. (AP Photo/Rick Bowmer)
  • Image Credit: ASSOCIATED PRESS
  • Amsterdam: Model S @ Tesla Store
  • Amsterdam: Model S @ Tesla Store
  • Image Credit: Flickr
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: Marcelo Jaramillo, assistant store manager, (R) shows a Tesla motor company car in a dealership at the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: Gaelle Freer looks at a Tesla motor company car in a dealership at the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Electric Car Maker Tesla Opens Store In Miami Mall
  • MIAMI, FL - JUNE 06: Marcelo Jaramillo, assistant store manager, (R) explains how the Tesla motor company car works in a dealership at the Dadeland Mall on June 6, 2013 in Miami, Florida. The electric car maker is trying to make a move by selling their cars, that can cost between $62,400 and $82,400, into malls and stores. (Photo by Joe Raedle/Getty Images)
  • Image Credit: Joe Raedle via Getty Images
  • Amsterdam: Model S @ Tesla Store
  • Amsterdam: Model S @ Tesla Store
  • Image Credit: Flickr
  • Amsterdam: Tesla Store
  • Amsterdam: Tesla Store
  • Image Credit: Flickr
  • Eindhoven: Tesla Store
  • Eindhoven: Tesla Store
  • Image Credit: Flickr
  • There is a Tesla store inside this mall...
  • There is a Tesla store inside this mall...
  • Image Credit: Flickr
  • DC Tesla Store
  • DC Tesla Store
  • Image Credit: Flickr
  • New Tesla Motors store
  • New Tesla Motors store
  • Image Credit: Flickr
  • Tesla store
  • Tesla store
  • Image Credit: Flickr
  • Tesla Tyson's
  • Tesla Tyson's
  • Image Credit: Flickr
  • Tesla
  • A Tesla Model S is shown in the showroom at the Washington Square Mall, Friday, July 20, 2012, in Portland, Ore. Tesla Motors only has 24 stores in the world, and now one of them is at Washington Square Mall in Portland. The company produces electric cars and hopes their product will be a hit with eco-conscious Oregonians. The cars can go from zero to 60 mph in less than six seconds, all without a drop of gasoline. (AP Photo/Rick Bowmer)
  • Image Credit: ASSOCIATED PRESS
Tesla took two more steps towards being allowed to sell its vehicles as it chooses (that is, direct to customers) this week. Legislative efforts in New Jersey and New York both gave the California automaker legal permission (or near permission) to operate its stores. It's gotten so bad – or good, depending on your views, that other automakers are starting to speak up.

Yesterday, Tesla got official permission to keeps it five stores open in New York thanks to the signature of Governor Andrew Cuomo on a pro-Tesla bill that passed earlier this year. This is not a surprise. The bill also makes it difficult for any other automaker to operate its own stores in the state.

Other automakers are now saying that the dealers have too much power.

In nearby New Jersey, the state Assembly voted yesterday to allow EVs to be sold directly to the consumer. This vote follow an Assembly committee's vote earlier this month and the bill now moves to the New Jersey Senate and, if it passes, would need to be signed by Governor Chris Christie before becoming law. You may remember there's a bit of bad blood there. This is all quite a turnaround from mid-March, when the state legislature voted against direct sales. If passed, Tesla would be allowed to operate four stores in the state.

As you can see, progress is being made. And that's changing the battlefield. The National Automobile Dealers Association (NADA) released a new package of pro-dealership information called "Get the Facts: The Benefits of Franchised Auto Dealers" to take the other side. NADA says that the "current franchised new-car dealer model has benefited consumers, manufacturers and local communities for nearly a century" and then lays out its reasons why. You can watch the NADA's short Get The Facts video below.

Perhaps most interestingly, other automakers – through the Auto Alliance – are now saying out loud that the dealers have too much power. In a statement to Automotive News, the Alliance said, " When we look at the big picture, we may be at a tipping point. If dealer groups continue their push for more onerous franchise laws, we will be forced to keep an open mind about how best to serve new-car buyers in the future." That was enough to scare the chairman of the Automotive Trade Association Executives, who told AN that, the Alliance coming out against the franchise system was a "recipe for disaster."



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    • 1 Second Ago
  • 194 Comments
      b.rn
      • 1 Year Ago
      I used to work for a large automotive group. I wasn't in sales, but watched the sales people work. Sometimes customers would try and bid one dealer against another. What they didn't know is that we owned both dealerships in the bidding war. Bidding us against ourselves is not competition. I've also watched dealership groups consolidate. Fewer and fewer enterprises are owning more and more dealerships. Competition is decreasing.
        Dean Hammond
        • 1 Year Ago
        @b.rn
        apparently taking away any form of negotiation is what Tesla wants...and most of the posters here...one comment I found interesting, a guy shopping 35 Ford dealers to get a "break" on the limited production Raptor, apparently that was a bone of contention, but being unable to get a break on a tesla because its "factory direct" is ok??????????????????????? huh?....
          Dean Hammond
          • 1 Year Ago
          @Dean Hammond
          @purpullberra...seek help young man....
          Letstakeawalk
          • 1 Year Ago
          @Dean Hammond
          "Tesla doesn't markup their own product before selling it direct..." OMG. https://www.youtube.com/watch?v=_n5E7feJHw0&feature=kp
          raktmn
          • 1 Year Ago
          @Dean Hammond
          If the Model S were sold through dealerships, they would still have $20,000 dollar "market adjustment" stickers over MSRP. It is like you don't even remember the Volt rollout at all, and all the markups for months at all. And (sorry Volt fans) but the Volt isn't half the car that Tesla is, with nowhere the supply/demand issues as the Volt.
          elctrNmbliT
          • 1 Year Ago
          @Dean Hammond
          The reason you don't get a "break" on a Tesla is because of the very definition of what a "break" is. A break is when you find a dealer that is willing to give you a "break" or the smallest markup from the factory price. Tesla doesn't markup their own product before selling it direct so they can bargain with you on lowering the price. The price is what it is and if you don't like it you don't have to go to another dealership with a different markup you would just shop for another brand like every other product in the world. If I don't like the price and features of my Apple phone I don't go to a different Apple dealer to haggle on the markup I just simply buy a Samsung Galaxy instead. It's really that simple. It's not complex. No matter how many examples you try to post on this board the outcome is always the same.
          purrpullberra
          • 1 Year Ago
          @Dean Hammond
          If you can't see why the words you wrote make you sound retarded then you have a negative IQ score.
      Technoir
      • 1 Year Ago
      [coming out against the franchise system was a "recipe for disaster."] What kind of disaster? Happy people getting better treatment and potentially lower prices? How many will miss the sleazy dealers?
      SLT
      • 1 Year Ago
      It seems like the "middle man cost" is improperly defined in every one of these arguments. The extra middle man cost is not the cost of running the dealership as this can be comparable to running a factory service center (although I doubt it is). The extra middle man cost is the extra profit a dealership strives to make to put directly in their pockets. The price the manufacturer sells a vehicle to a dealership for should be the true market price of that vehicle. It is sad when people loose their jobs, but any economics major on the planet will tell you it is not a good idea to keep jobs that are obsolete.
        express2day
        • 1 Year Ago
        @SLT
        You don't think manufacturers will want their sales/service facilities to be profit centers too??? We're talking major corporations here, of course they will. Seeing how "big business" operates they will probably be more aggressive about those profits than typical dealers.
          raktmn
          • 1 Year Ago
          @express2day
          express2day -- here is where you completely don't understand any of the legal actions that Tesla is involved in right now in any state. None of the court cases they have won, none of the regulatory rulings that they have won, and none of the laws proposed, have had ANY impact on ANY current car maker/dealership. I bet you don't even realize that only approx. half the states currently even have ANY franchise laws! If you think having Tesla carve out state exceptions for themselves in the states that have laws is some kind of impending doom for all dealerships, what about all the states who don't have ANY laws at all.
          express2day
          • 1 Year Ago
          @express2day
          @raktmn This is NOT just about Tesla. It is about any manufacturers being able to follow suit which would not be a good thing for consumers. If GM, Ford, Chrysler, Toyota, etc. were lobbying for direct sales outlets, my comments would be the same.
          raktmn
          • 1 Year Ago
          @express2day
          Yea, having their service centers not be profit centers would be as crazy as Tesla completely opening up all their patents as open source to all their competitors!! No car company would ever do stuff like that, all car companies are the same. Crazy, never gonna happen... http://green.autoblog.com/2014/06/14/what-does-open-patents-deal-mean-for-tesla-bmw/
      Letstakeawalk
      • 1 Year Ago
      "" When we look at the big picture, we may be at a tipping point. If dealer groups continue their push for more onerous franchise laws, we will be forced to keep an open mind about how best to serve new-car buyers in the future." That was enough to scare the chairman of the Automotive Trade Association Executives, who told AN that, the Alliance coming out against the franchise system was a "recipe for disaster." Of course the automakers would like to dump the franchise system - they've been trying to do it for decades.
        purrpullberra
        • 1 Year Ago
        @Letstakeawalk
        And they deserve our help. Will you help destroy dealerships with us? Join the fight!
      raktmn
      • 1 Year Ago
      Tesla's are limited production too, just like the Raptor. That makes it a very accurate comparison. If a mega-Dealership that had GM/Caddie/Toyota/Kia/Jag/etc franchises added on a Tesla franchise, they would treat every Model S they got just like a Raptor (or worse). They wouldn't need to sell it in that quarter to show profits like Tesla needs to do with every car they build, they could sit on it with an insane markup the same way they do a Raptor and just wait for a "whale" to pay insane markups. The Raptor is a great comparison. What would you compare it to? A VW Jetta, where there currently is a 3+ month supply of VW's sitting on lots? That would be the insane comparison to make.
      RocketRed
      • 1 Year Ago
      I won't cry for dealers if automakers can sell direct. But it's a little lame for manufacturers to claim that they are looking out for consumers here. The manufacturers benefit from aggressive, often crooked dealers to move their cars. It's not like it hurts automaker X because someone feels ripped off, because every automaker is following the same model of sales. The manufacturers have a body of highly motivated sales people, and they don't get their hands dirty or expose themselves to complaints about the sales process. If the manufacturers had the exclusive right to sell online, then there would be a set price for every model for a region. Would the manufacturers pass on the savings to you or just charge even more than current MSRPs?
      Zoom
      • 1 Year Ago
      " pro-Tesla bill that passed earlier this year. This is not a surprise. The bill also makes it difficult for any other automaker to operate its own stores in the state." I can already see the legal challenge here. Why does Tesla get special treatment relative to other automakers. I can't wait for the Supreme Court to finally rule against the dealers. And yes, this is a Federal issue, carmakers are national firms and the Commerce Clause should apply because they are being hampered by 50 different state laws.
      EVSUPERHERO
      • 1 Year Ago
      The auto manufacturers won't mass produce EV's but they are right their to jump on Tesla's ground breaking process for their advantage. They are parasitic on Tesla and now with the open patients, they may even find a way to slow EV progress, again.
      MMM
      • 1 Year Ago
      GO TESLA!!!
      BryanGx
      • 1 Year Ago
      According to the NADA page, one of the "benefits" of a dealership is to "simplify an otherwise complex car-buying experience." Umm... is that a joke? Let's see... pointing and clicking on exactly what you want from the comfort of your own living room versus spending hours trying to fend off a salesman's pressure to buy needless markups and warranties...
        Grendal
        • 1 Year Ago
        @BryanGx
        I like how simplifying the process means that you will need to go to three or more dealerships to find that "best" price.
          Dean Hammond
          • 1 Year Ago
          @Grendal
          I believe that is how Honda operates and how their cars are advertised...
          Dean Hammond
          • 1 Year Ago
          @Grendal
          then again Grendal, at one stage Saturns one price business plan was veiwed as price fixation which was deemed as unconstitutional by some....
          Grendal
          • 1 Year Ago
          @Grendal
          Businesses have figured ways around price fixing. The main way is setting a minimum price. You can raise your price (thus not fixed) but you are not allowed to sell below the minimum without losing your ability to sell the product. That then generates a sort of fixed price out there that everyone adheres to. I own a Saturn. I plan on buying a Tesla as my next car. Hopefully next year if I can afford it.
      • 1 Year Ago
      The only direct benefit to the consumer that dealerships bring is service and repair being local. I wouldn't want to own a car that I had to spend 2 days travelling to get the car serviced. Where I live, all the major dealers have local shops. Tesla does not. That convenience gives me the incentive to buy from them traditional shops. But to say that Tesla cannot take care of their customers is unproven and conjecture. If the cars meet the safety laws the other guys have to follow, then they should be allowed to sell their cars. The cronyism and cartel seeking from Government to reduce natural market competition needs to end from corporate America establishment. Let the market decide.
        Weapon
        • 1 Year Ago
        The reason why Tesla can't have local locations is because dealership laws are blocking them. Tesla wants to make local locations, they just want to own those locations and not franchise it. If you live too far from a service center, Tesla would send a person to your house with a loaner and you use the loaner while Tesla takes your car in for maintenance.
      Matt Mossberg
      • 1 Year Ago
      I don't know either to laugh at the video for its crystal clear misinformation lying and deception or get frustrated that many non informed people will see this and believe it. The funniest thing about the video to me is how it portrays salesmen and dealerships as this wonderful and nearly magical place where they treat every single consumer oh so well and do everything they possibly can to get the best deal. and out of their good will spend time on the hundreds of pages of the contract and warranty so the lil old customer doesn't need to fret over any of the 'very clear, non legal jargon, definitely not screwing over the consumer over' paperwork so buyers can get in and out in a jiffy and enjoy their new car.... that they could not have got pressured in anyway to get any needless equipment or extras because salespeople are always the kind of people that will bend their backs for you out of the kindness of their hearts and are always super duper educated about all the cars they sell!!!
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