Photo: Tesla
Going against archaic dealership cartels is obviously an uphill battle for Tesla Motors, but the EV-making marque isn’t going to show the white flag and wuss out in front of those dinosaurs. Since the first Tesla Store was erected, the company took a lot of heat, including on state level, from various dealer cartels.
A heck of a lot of battles against the 20th century car selling system have been won, the reason why Elon Musk didn’t lose his nerve up to this moment. In recent Tesla vs dealership associations news, the company’s business model of selling cars directly to the consumer has prompted Missouri auto dealers to file a suit late last week against Tesla. They claim that the Palo Alto-based marque’s new store is illegal.
More specifically, the Missouri dealer association is claiming that granting Tesla a license to directly sell the Model S at University City is a violation of state statute. I really wonder what’s that about, but there is no question regarding whether this action is either a blank shot or a definitive “It’s on, bitch!” quibble.
What Missouri’s dealer cartel wants from the state’s Department of Revenue is to revoke the only license given to Tesla Motors for the Store in University City.
The association is thinking that if the lawmakers do it and cut Tesla off, the litigation will subdue Tesla to stop trying to file for any other selling license in the Midwestern state. Like any other cartel, the Missouri Automobile Dealers Association told lawmakers the same archaic mumbo-jumbo:
Separate roles for manufacturers and dealers equal to bigger stickers because the dealer wants its $$$ as well. On the other hand, Tesla Motors’ direct to consumer approach doesn’t ramp up the starting price of the Model S as it happens with a traditional dealer’s premiums.
Here’s a sarcarstic thank you to crony automotive capitalism and here’s a Frisco seal-sized middle finger salute to those money hungry dealership cartels from Michigan, Texas, New Jersey and Arizona as well.
Editor’s note: dear Missouri dealerships, could you please lobby the automakers you sell vehicles for to actually make desirable cars? A new sales model is exceptionally beneficial for filtering the old dinosaurs from the up-and-coming automotive talent. Instead of this petty legal masquerade, we recommend you to start analyzing how the auto market is evolving according to what car buyers want in anno Domini 2015.
More specifically, the Missouri dealer association is claiming that granting Tesla a license to directly sell the Model S at University City is a violation of state statute. I really wonder what’s that about, but there is no question regarding whether this action is either a blank shot or a definitive “It’s on, bitch!” quibble.
What Missouri’s dealer cartel wants from the state’s Department of Revenue is to revoke the only license given to Tesla Motors for the Store in University City.
The association is thinking that if the lawmakers do it and cut Tesla off, the litigation will subdue Tesla to stop trying to file for any other selling license in the Midwestern state. Like any other cartel, the Missouri Automobile Dealers Association told lawmakers the same archaic mumbo-jumbo:
"For many years, new motor vehicles have been sold in Missouri using a tried-and-true structure: manufacturers do not sell cars themselves, but do so through a network of licensed dealers. This structure of separate roles for manufacturers and dealers is established by statute and reflects wise public policy."
Uhm, not so fast...Separate roles for manufacturers and dealers equal to bigger stickers because the dealer wants its $$$ as well. On the other hand, Tesla Motors’ direct to consumer approach doesn’t ramp up the starting price of the Model S as it happens with a traditional dealer’s premiums.
Here’s a sarcarstic thank you to crony automotive capitalism and here’s a Frisco seal-sized middle finger salute to those money hungry dealership cartels from Michigan, Texas, New Jersey and Arizona as well.
Editor’s note: dear Missouri dealerships, could you please lobby the automakers you sell vehicles for to actually make desirable cars? A new sales model is exceptionally beneficial for filtering the old dinosaurs from the up-and-coming automotive talent. Instead of this petty legal masquerade, we recommend you to start analyzing how the auto market is evolving according to what car buyers want in anno Domini 2015.
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