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Tesla Faces Off Against Car Dealers In Another State: Ohio

cartechboy writes "We've seen Tesla run into regulatory issues in Texas. And North Carolina. This time, it's Ohio, where car dealers are playing an entertainingly brazen brand of hardball. The Ohio Dealers Association is backing an anti-Tesla amendment to Ohio Senate Bill 137--which turns out to be an unrelated, uncontroversial proposal about drivers moving left when they see emergency vehicles (The bill is headed for adoption.) The sudden and subtle amendment would ban Tesla from selling its electric cars directly to customers, who place their orders online with the company after learning about the Model S in company-owned stores. A hearing on the amendment was suddenly scheduled for today; Tesla is fighting back by outlining the economic benefits to Ohio--after taking some legislators for a ride in the Model S (a Tesla tactic that has worked before)."

57 of 214 comments (clear)

  1. time to make the call by ion9 · · Score: 5, Informative

    http://www.ohiosenate.gov/senate/index Find your Senator and tell them what you think, not that it will do any good.

    1. Re:time to make the call by mrchaotica · · Score: 2

      At the state level, sometimes it does still do good. It's calling your US Senator that is mostly useless.

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    2. Re:time to make the call by Anonymous Coward · · Score: 5, Interesting

      I wonder how often when a bill comes to the attention of a legislator does he actually think, "what do I honestly think is the right thing to do here?" Do you think ever? Or is it 100% "hmmm, which side of this bill's backers is paying me more?"

    3. Re:time to make the call by Mr+D+from+63 · · Score: 4, Insightful

      While Tesla direct sales are an example of the the type of practice this law intends to ban, it is not because of Tesla that they want this law enacted. It is the dealers protecting themselves from being cut out by their own car companies. For the near future, they could care less about Tesla specifically. Calling it Anti-Tesla is a bit "Tesla-centric", IMO. But it makes headlines, I guess.

    4. Re:time to make the call by Teancum · · Score: 3, Informative

      Actually, yes, Tesla does have "authorized local repair shops" (in this case company owned service centers) in both Texas and North Carolina. More than one in both of those states. I don't know specifically about Ohio, but apparently Tesla is investing in Ohio with some manufacturing jobs too, according to the article and they are planning on expanding their service centers and recharging station network to include Ohio.

      While I will admit that Tesla doesn't have nearly as widespread and extensive network of dealers as well as 3rd party repair shops capable of servicing a Tesla vehicle compared to Ford, GM, or Chrysler, they have been slowly building up such a capability and plan on sticking around in the market. You certainly don't need to put your Tesla Model S on a flatbed truck and bring it to the SF Bay Area in order to get it serviced.

      If you are complaining about service centers, try a brand like Saab, or even worse something like Isuzu (which isn't even being sold in America any more as a passenger vehicle). Parts and service are a real pain in the rump.

    5. Re:time to make the call by Ksevio · · Score: 3, Insightful

      Often it's also "What side will keep me in office?" in which case calling helps.

    6. Re:time to make the call by ClickOnThis · · Score: 2

      If you are complaining about service centers, try a brand like Saab, or even worse something like Isuzu (which isn't even being sold in America any more as a passenger vehicle). Parts and service are a real pain in the rump.

      I own a Saab. Yes, parts are a problem. But service isn't. There are plenty of dealers and private shops that can still help you.

      You may need to wait for parts, and you may need to settle for used ones. But they are available.

      --
      If it weren't for deadlines, nothing would be late.
  2. At least... by mythosaz · · Score: 4, Insightful

    ...at least Texas' laws were a consequence of leftover monopoly laws preventing squeezing out car dealers.

    This is just plain old greed by bought-and-paid-for politicians working for their car-dealer sponsors.

    1. Re:At least... by i+kan+reed · · Score: 4, Interesting

      Car dealerships practically own(and frequently are) local politicians, in a way mega-corporations wish they could do to the U.S. federal government. Being a local petty millionaire who can throw a "fund-raiser" is all it takes for the smaller offices.

    2. Re:At least... by Ralph+Wiggam · · Score: 3, Insightful

      Which is why the libertarian "move everything to the state level" concept is a bad idea.

    3. Re:At least... by mythosaz · · Score: 2

      It's not inherently wrong for Ohio to decide how it wants to deal and trade with California at the state level -- only different.

    4. Re:At least... by i+kan+reed · · Score: 4, Insightful

      Not inherently wrong, I agree, but it is unconstitutional. Interstate trade is the exclusive regulatory domain of the feds.

    5. Re:At least... by Chris+Mattern · · Score: 2

      I remember when a local Volvo dealer got himself elected mayor of the city his dealership was in. The city police got kitted out with new Volvos.

    6. Re:At least... by Spy+Handler · · Score: 3

      You can easily move to another state. Just pack up your stuff and go. You cannot easily move to another country; in some cases it may be impossible (what country will have you?)

    7. Re:At least... by danbert8 · · Score: 2

      The libertarian ideal is "move everything to the individual level" but failing at that we attempt to get it to the local level, and failing at that, the state level. Basically the smaller number of constituents to politician ratio, the more power the individual has.

      --
      Yes it's an anecdote! Were you expecting original research in a Slashdot comment?
    8. Re:At least... by faffod · · Score: 3, Interesting

      Is Ohio deciding how to deal with California trade, or are a few making choices that will harm the many. The parent comment about moving everything to the state level was in response to the comment that local politicians are easy to lobby (let's not call it bribe). I find it inherently wrong that a few with money can carry so much leverage in our political system.

    9. Re:At least... by faffod · · Score: 5, Insightful

      I can't leave the city I live in - not if I want to continue being a father for my children. Saying that it is easy to pick up and move is a fallacy for many if not most people.

    10. Re:At least... by bluefoxlucid · · Score: 2

      Hey now, I'm a neo-separatist. I want to dissolve the North American Empire of Crassus.

    11. Re:At least... by LordLimecat · · Score: 4, Interesting

      Incorrect, it is NOT exclusive. The fed has supremacy when it passes a law, but states CAN reach inter-state agreements about many things: liquor laws, metro finance agreements, etc.

      Virginia has reached agreements with Maryland and DC regarding who pays for Metro costs, how the metro runs, who regulates it, etc-- thats not an exclusively federal issue.

    12. Re:At least... by Anonymous Coward · · Score: 4, Informative

      Incorrect, it is NOT exclusive. The fed has supremacy when it passes a law, but states CAN reach inter-state agreements about many things: liquor laws, metro finance agreements, etc.

      Virginia has reached agreements with Maryland and DC regarding who pays for Metro costs, how the metro runs, who regulates it, etc-- thats not an exclusively federal issue.

      On many things, yes, but not all things. States can collaborate on certain things (or not) but the courts have always held that states cannot pass any laws that would in any way restrict commerce across state lines.

      So if the states of New York and New Jersey agree, for example, to impose a $100-per-unit sales tax on widgets, they can do this. Or if New Jersey decides to undercut New York's $100 tax by charging only $50, it can do this. But New York can't impose a $250 tax on widgets brought in from New Jersey while keeping its own tax rate at $100, because that would be, essentially, a tariff that restricted interstate commerce.

    13. Re:At least... by lgw · · Score: 2

      Because, get this, different people have different values. Bizarre I know. The people of California may have a strikingly different idea of perfect government than the people of Texas. If each state does it's own thing, and people can move between states, then the people of Texas can be quite happy with the Texas way, while the people of California are quite happy with the California way even though they are quite different.

      Neat concept, what?

      I've frequently moved to where the work is. I moved to California because that's where the best jobs were for me. I was so unhappy with how California was run that I left, but the fact that there was good work in California is an important part of that picture - if I want the good California jobs, it's on me to put up with the California government. By my values that was a poor trade-off, and I left - that doesn't mean I'm the universal arbiter of good and bad government, it just means that I went to where I'd be happier, while no doubt others moved in the opposite direction.

      --
      Socialism: a lie told by totalitarians and believed by fools.
    14. Re:At least... by rea1l1 · · Score: 2

      Who cares about the constitution? The government does whatever it wants to. They have the big guns.

  3. Oh no! by i+kan+reed · · Score: 4, Funny

    It's a new business model, and it's coming right at us! Shoot it! Shoot it now! Don't check if it's friendly! SHOOOT IT!!!!

    1. Re: Oh no! by O('_')O_Bush · · Score: 2

      It sounds like part of the plot of Atlas Shrugged and the response to Rearden Metal.

      --
      while(1) attack(People.Sandy);
    2. Re: Oh no! by Travis+Mansbridge · · Score: 2

      I think it's from South Park.

    3. Re:Oh no! by s.petry · · Score: 2

      In fairness, Adam Smith also discussed how Government regulation must prevent monopolization to ensure that this didn't happen. We used to have laws that were enforced to handle some of this, but those have been repealed or simply ignored.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    4. Re:Oh no! by ranton · · Score: 2

      Politicians only like free markets if it helps their corporate sponsors. When the free market benefits the consumers it is evil and needs to be stopped with government intervention.

      --
      -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
    5. Re:Oh no! by jratcliffe · · Score: 4, Insightful

      "Rarely do people of the same occupation gather together, even if only for merriment, that it does not end in some plot to defraud the public." I'm pretty sure that the large majority of people who cite Smith haven't actually _read_ Smith.

    6. Re:Oh no! by minstrelmike · · Score: 2

      "Rarely do people of the same occupation gather together, even if only for merriment, that it does not end in some plot to defraud the public." I'm pretty sure that the large majority of people who cite Smith haven't actually _read_ Smith.

      I find two things interesting about Wealth of Nations. One is that it is easily readable. The other is that it seems everybody interprets it from an ideological perspective, kind of like the Bible. He wrote it for kings to understand basic economics, both good and bad.

  4. How can Ohio even do this? by Beryllium+Sphere(tm) · · Score: 4, Interesting

    Tesla purchases are interstate commerce. Constitutionally and practically that's a matter of Federal jurisdiction.

    1. Re:How can Ohio even do this? by MightyYar · · Score: 2

      I'm betting it gets complicated since Ohio can control vehicle registrations. Try buying an out-of-state vehicle without CA emissions and registering it in CA, for example. I understand that is not a perfect analogy, but I can see how it isn't just a simple interstate commerce thing.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    2. Re:How can Ohio even do this? by Trepidity · · Score: 5, Informative

      The commerce clause doesn't say that a state cannot regulate anything that has ever traveled in interstate commerce. Rather, it does two things (as relevant here).

      1. It prevents states from discriminating against out-of-state producers in favor of in-state producers. This is known as the "dormant commerce clause". So a state could not ban, say, the import of electric cars from out-of-state, while allowing in-state manufactures to produce and sell them them. But the state could completely ban the sale of electric cars within the state. The fact that someone wants to trade the cars in interstate commerce doesn't trump the state's right to regulate sales within its borders.

      2. In certain areas where the federal government has enacted a comprehensive regulatory scheme under the interstate commerce clause such that it intends to fully "occupy the field" to the exclusion of any state regulation of the subject, the federal preemption doctrine does preempt any state laws. This might be closer to what you're thinking of. But it applies only in specific cases, where the federal government has actually explicitly preempted states' authority with a comprehensive regulatory scheme.

    3. Re:How can Ohio even do this? by stabiesoft · · Score: 2

      No you cannot. CA bans cars that do not meet CA requirements unless the car was registered out of state for some miles. From the smogtips.com website "Any type of smog station can inspect and certify your out of state vehicle (regular smog check & repair center, smog test only center, or Gold Shield smog station) so long as it's a used vehicle with at least 7,500 miles. New vehicles can not be registered in California unless they are 50-State Emissions certified. "

  5. So much for capitalism by digitalPhant0m · · Score: 5, Insightful

    What a shame it is that our country operates in this manner.
    Regardless of which or both parties are to blame it's the publics complacency in allowing our elected leaders to behave this way.

    This is supposed to be a capitalist democracy. There is supposedly a free market.

    Wave goodbye to innovation when you can no longer bring it to market because it is more lucrative to stifle it.

    1. Re:So much for capitalism by Anonymous Coward · · Score: 2, Insightful

      This is supposed to be a capitalist democracy.

      Democracy is sold to the highest bidder. Works as designed.

    2. Re:So much for capitalism by Smidge204 · · Score: 3, Interesting

      There's no such thing as a free market.

      Someone will always jockey for a position of dominance, because that's how capitalism works. The result is monopolies, robber barons and corporate oligarchy. Or it can go to the other extreme, where all trade is strictly regulated and controlled by third parties (eg governments). The result is the ideal case of socialism where everything is effectively owned and operated by everyone.

      The reality in practice is always a mix of these two; some combination of dominant corporate influences and government regulations that attempt to keep them from running completely roughshod over the economy. This in no way resembles the "free market" that everyone learns about in high school economics class because that's just a simplified, idealized example and not a tenable economic model.
      =Smidge=

  6. Why don't we name and shame? by MetalliQaZ · · Score: 5, Insightful

    Why is it that the people who schedule these underhanded surprise hearings go unnamed? People need to know that these guys are working for special interests in back-room deals.

    --
    "Here Lies Philip J. Fry, named for his uncle, to carry on his spirit"
  7. FTFA by schneidafunk · · Score: 2

    The amendment corresponds to the registrar of motor vehicles:
    "The registrar of motor vehicles shall deny the application of any person for a license as a motor vehicle dealer, motor vehicle leasing dealer, or motor vehicle auction owner and refuse to issue the license if the registrar finds that the applicant:

    (11) Is a manufacturer or a subsidiary, parent, or affiliated entity of a manufacturer. applying for a license to sell or lease new or used vehicles at retail. Nothing in this division shall prohibit a manufacturer from disposing of vehicles at wholesale at the termination of a consumer lease through a motor vehicle auction. This division shall not serve as a basis for termination, revocation, or non-renewal of a license granted prior to the effective date of this provision."

    --
    Some people die at 25 and aren't buried until 75. -Benjamin Franklin
  8. Why? by gstoddart · · Score: 2

    Why do states wish to entrench a specific business model or exclude someone from it? What does it have to do with them?

    What next, banning all forms of on-line shopping to prop up the brick and mortar stores?

    This just sounds like more irrational pandering to protect existing business interests -- which isn't really what legislatures should be doing (but do anyway).

    --
    Lost at C:>. Found at C.
    1. Re:Why? by Copid · · Score: 4, Informative

      Why do states wish to entrench a specific business model or exclude someone from it?

      Because while it's expensive to buy US Senators and other high profile offices, it's pretty cheap to buy state legislators--well within the grasp of one of the district's wealthier entrepenurs. Like a guy who owns a major car dealership.

      --
      An interesting anagram of "BANACH TARSKI" is "BANACH TARSKI BANACH TARSKI"
    2. Re:Why? by jratcliffe · · Score: 2

      This is more irrational pandering to protect existing business interests -- which isn't really what legislatures should be doing (but do anyway).

      On the contrary, this is highly RATIONAL pandering, from the POV of the Ohio legislators. Irrational pandering would be sucking up to people who have no social influence, don't vote, and don't make political contributions.

    3. Re:Why? by mrchaotica · · Score: 2

      Why? Because previously, the issue was that the car manufacturer was monopolizing all the car sales.

      In other words, these rules started out as anti-monopoly consumer protections. It's only 50+ years later, now that the independent dealer industry has evolved into a cartel, that they're seen as bad for the consumer.

      Of course, I'm not sure why that was perceived as a problem for cars but not for other consumer goods (i.e., why aren't all "factory outlet" stores, including those for things like clothing, illegal?).

      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

  9. old news, or maybe not even news at all by 241comp · · Score: 2

    This was already passed by the senate, without the "Denial of license as motor vehicle dealer" clauses: http://www.legislature.state.oh.us/bills.cfm?ID=130_SB_137 I guess I don't understand how the bill amendment process works, but are they really considering amending it now that it has already passed?

  10. Great! by Black+Parrot · · Score: 4, Funny

    Now only 48 more articles on this topic.

    --
    Sheesh, evil *and* a jerk. -- Jade
  11. Sounds familiar by spaceyhackerlady · · Score: 4, Interesting

    Here in B.C. we had a stink a few years ago over privately imported vehicles from Japan. Under Canadian law you can privately import anything you like if it's over 15 years old, and in the mid-noughties a lot of interesting vehicles started to turn 15. Since they are essentially worthless in Japan, but well looked-after, they're a bargain for anybody who wants a used car. Japan has made a major industry of exporting their used cars. Unlike many other jurisdictions, cars with the steering wheel on the "wrong" side are road-legal here.

    The car dealers threw a fit. They claimed that right-hand drive vehicles were the enemy of all that is free and right and holy, but were never to adequately explain why. I wondered why they were concerned about their ability to compete with 15 year old used cars. Again, they were never able to adequately explain why.

    It's died down. For now. But you never know what they're going to try next.

    I bought a 1992 Mitsubishi L300 Delica in 2007. I love it. A touch expensive to run, but ridiculously practical and it will go anywhere with shift-on-the-fly 4WD. It also has a delightfully quirky style.

    ...laura

    1. Re:Sounds familiar by DarthVain · · Score: 3, Interesting

      Looked into these myself at one point. Two amendments. Not only do they seem not to want to compete with 15 year old cars, but 15 year old cars with both the cost of freight across the PACIFIC OCEAN and import taxes that are associated with them. Not to mention (as you probably noticed) trying to get part or service for something exotic (at least here).

      Considering most people that are interested in these things, are specifically interested in obtaining a car you can't usually get outside of Japan anyway. Doesn't sound like a big crossover of lost business.

      Typical knee jerk reaction to anything that *might* threaten their old antiquated business model (even if it doesn't and never could).

  12. NC governor's test drive killed an anti-Tesla by TimHunter · · Score: 4, Informative
    Tesla arranged for NC governor McCrory to test-drive a Tesla. http://www.newsobserver.com/2013/06/10/2953779/dome-tesla-lobbyists-give-mccrory.html

    McCrory hopped in for a ride, with a state trooper behind the wheel. Before long, McCrory and the trooper switched, giving the Governor a chance to guide the sleek vehicle around Raleigh.

    It worked. http://www.digitaltrends.com/cars/tesla-model-s-scores-big-win-in-north-carolina-in-battle-over-business-practices/

  13. Ignorance by s.petry · · Score: 5, Informative

    I think you should read up on the Libertarian movement, because they don't want to "move everything to the state level" as you falsely claim. Don't come back with some wacko and claim that's the movement ideology.

    --

    -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

    1. Re:Ignorance by Man+On+Pink+Corner · · Score: 2

      How to tell if someone is a wacko: is he a medical doctor who doesn't accept the underlying principles of modern biology? If so, then yes, he's a wacko.

      That doesn't mean he's wrong with regard to economic matters, but it does mean you don't want to blindly hitch your intellectual wagon to his.

    2. Re:Ignorance by WolfWithoutAClause · · Score: 3, Interesting

      Ron Paul is wrong about economic matters. There was a head-to-head between him and Paul Krugman; it's so very rare to have a politician have his ass handed to him quite so hard.

      http://www.youtube.com/watch?v=WEoGKpnutyA

      --

      -WolfWithoutAClause

      "Gravity is only a theory, not a fact!"
    3. Re:Ignorance by s.petry · · Score: 2

      Ron Paul wanted to cut military expenditures, not disband the military or hand them over to the state. Ron Paul wanted to reduce the size of Government in general. Because, for example, having 9 different 3 letter organizations to handle national security is too many.

      Reducing size and scope is not the same thing as disbanding the whole thing. Claiming those two things are the same is ignorance (willful or otherwise).

      That single aspect (reduction of Government) is only a portion of what both Libertarians and Ron Paul stand for and request. Increased accountability and transparency are two more subjects easy to look for in both the Libertarian Party and Ron Paul.

      --

      -The wise argue that there are few absolutes, the fool argues that there are no probabilities.

  14. Good ol' boy dealer network still strong by Anonymous Coward · · Score: 2, Interesting

    Clearly there are some who would like to protect the good ol' boy dealer network: a couple of years ago, I was planning a purchase of a Toyota Sienna, and when I was unhappy with the treatment I was getting from our local dealer when it came time to negotiate a price, I decided to call around to dealers within a couple hours' drive to see what other options there were. One dealer two hours away returned my message, and my wife was unlucky enough to answer. He chewed her out for not "respecting" the dealer network, and how dare we call around to try to get the price, anyway? He said wouldn't sell a car to us after that, even if we wanted to pay the sticker price!

    My wife was pretty shaken up about it, and I always meant to write to Toyota to complain. But in the end, we found a dealer three hours away who gave us a good price in an email quote. When I took the quote to our local dealer, they wouldn't budge on the price, so we ended up driving to the other dealer and save about $1500. They lost our sale.

    Maybe if more people shopped around at different dealers, their stranglehold on the market might loosen a bit?

  15. Re:Honest politicians hard at work by torkus · · Score: 4, Interesting

    That's just it...if you make it a law then it's legal. Then you challenge the law and get it overturned...then they write a new one permitting whatever was used to overturn the old one ad infinitum until you get a constitutional challenge which this won't rise to.

    I agree though it's a brazen, monopolistic power grab by the dealers. Remind you of the MPAA and RIAA? Their business model gets challenged by...reality and life...so they fight for laws and sue sue sue. All to the detriment of their customers.

    I can see why they're bent out of shape...they're used to a locked in business model that basically guarantees profits. Unfortunately buying votes indirectly is still ridiculously easy as is adding things to unrelated bills about to be passed into law. I can only see that trend getting worse...here's a bill to explicitly outlaw shooting infants in a stand your ground state. Rider to it also prohibits you from selling books not approved by the writers guild. Just you wait...

    --
    You can get rich if you own a politician, but you have to be rich to buy one in the first place.
  16. Re:Huh by jratcliffe · · Score: 2

    Nope, not if the state is evenhanded about it, and the Federal government hasn't effectively preempted state regulation. If the state said "Tesla, a CA company, can't sell directly to consumers in OH, but StillWhiningAboutLeBron Electric Vehicles Inc., based in Akron, can," that would be an interstate commerce violation.

  17. DING DING DING! by Xaedalus · · Score: 2

    We tend to forget that the 10th Amendment exists not just for us, but for those whom we disagree with as well. The same thing can be said for the rest of the Bill of Rights. The current state-level issues we face are a natural result of the way we've structured our society. Typically in the past, an Empire would deal with this by promoting one Imperial language, one Imperial-approved religion, etc. Since we're not an empire but a democratic republic, we don't have the luxury of tyranny to promote one culture's views over another's.

    --
    Here's to hot beer, cold women, and Glaswegian kisses for all.
  18. Re:Ron Paul has been wacky, and standard bearer by CanHasDIY · · Score: 2

    > So Ron Paul is a "wacko" now?

    Ron Paul has always been - let's say "popular among the UFO set".
    Wacko or at least wacky, depending on personal opinion.

    Agreed, he's also been a standard bearer for libertarians. That wacky / wacko segment is one of two issues with the otherwise reasonable libertarian party. The other issue is their obsession with drugs. Occasionally I listen to a libertarian and their "logic" makes me ask "what the hell?!?! Is this guy stoned or what?!". Then I remember the answer is yes, they probably are stoned.

    It's unfortunate because libertarians are right about a lot of things, but the druggie and wacko wings of the party make them all look bad.

    You were doing OK until you starting blathering your assumptions about why Libertarians are for the legalization of drugs. Then it turned into a personal attack, and you lost any credibility you might have built.

    FYI, and to help you avoid making such a freshman mistake in the future, Libertarians are against the criminalization of drugs for several reasons, the main one being that anti-drug laws are patently unconstitutional.

    Actually, if you do much research into the party at all, you will soon come to realize that "because it's unconstitutional" is the basis for most of their policies.

    While you may not agree with that philosophy, there is no excuse for making shit up.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  19. why is this legal ? by Tom · · Score: 3, Insightful

    The whole "rider" thing in the USA puzzles me to no end.

    How isn't this considered fraud? To attach something entirely unrelated to a law as a trick to get it passed? To me that's the definition of fraud and deceit.

    --
    Assorted stuff I do sometimes: Lemuria.org