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Ohio Attempting To Stop Tesla From Selling Cars, Again

Posted by Unknown on from the screams-of-dying-middlemen dept.

cartechboy writes "Man the automotive dealer associations don't like Tesla. Remember that time the Ohio dealers attempted to block Tesla from selling its electric cars in in the Buckeye State. Now, it's happening again. The car dealers are once again pushing legislation that would keep Tesla from selling cars in Ohio. Senate Bill 260 would prohibit the Ohio Bureau of Motor Vehicles from issuing car-dealer licenses to auto manufacturers. Since Tesla owns and operates its own network of 'dealerships' (aka galleries), this would make it so the automaker couldn't acquire a car-dealer license. Section 11 of the bill lists 'a manufacturer... applying for license to sell or lease new motor vehicles at retail' as one of the types of organization ineligible for a dealership license. On top of all this, the language isn't on the Senate floor as a standalone bill. No, it's inserted as an amendment to Senate Bill 137 which is an unrelated bill requiring Ohio drivers to move to the left while passing roadside maintenance vehicles. Is this yet another slimy tactic to try and undercut the new kid on the block?"

5 of 387 comments (clear)

  1. Pretty Much. by SlashdotWanker · · Score: 5, Insightful

    Yes.

    1. Re:Pretty Much. by Kenja · · Score: 5, Insightful

      Which is even more baffling, I usually associate free market to republicans. Dems are usually supporters of bigger government.

      That's what Republicans claim, but there is very little recent evidence of this.

      --

      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    2. Re:Pretty Much. by Valdrax · · Score: 5, Interesting

      Which is even more baffling, I usually associate free market to republicans. Dems are usually supporters of bigger government.

      Don't buy the talking points of the parties. Each party has a number of conflicting interest groups within them, and which group is on top varies from region to region. Some conservatives believe in the free market almost religiously, while many others believe in the free market is only a great idea to apply *outside* of their industry. Furthermore, the lower you go down from the national level, the more an individual politician's interests will be tied into which big fish is willing to dribble money into their campaign, and that will more often than not be tied to the local rich guy.

      Car dealerships are local businesses that pull in a lot of money and which have long had a history of being big donors to local politics. There are a number of ideological reasons that Republicans would support protection of a local elite at the expense of what the public wants, but let's face it, a Democrat would probably support the same bill if his town had a politically active car dealership in it and just use different rhetoric for it.

      The "free market" is a principle, and principles frequently go AWOL when reelection funding is on the line. Or if you want to be even more cynical, you can consider it just the Republican's "branding" rather than beliefs. Something to keep the common voters rooting for the team, while the business of politics continues to be business.

      --
      If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
  2. Re:Meh... by Gadget27 · · Score: 5, Insightful

    Cutting out the middle man is not a crime, its an achievement.

    What would be the problem if Ford or Honda sold directly to the consumer? Are you suggesting that it's anti-competitive to set the price of your own product? In a scenario without dealerships, there would still be competition... not between dealerships, but between manufactures instead. If you could only buy a Ford from Ford, and the only cars on the market were Ford, then there could be a problem, but there is no shortage of auto manufactures to keep the market competitive.

  3. Not just targetting Tesla by Attila+Dimedici · · Score: 5, Interesting

    While Tesla is the only manufacturer who is attempting to sell cars without a dealer network, the dealers recognize that if Tesla is successful with this tactic other manufacturers will follow their lead. The car dealers are attempting to protect their business model. I hope the dealers fail because it is not at all clear to me that dealers add any value to the process. It appears that the dealers' association agrees with me. However, I am not positive that car dealers do not add value. If they do, and manufacturers are allowed to sell without them, we will quickly discover what value they add to the equation. In either case, this attempt to enshrine their existence into law is a bad idea.

    --
    The truth is that all men having power ought to be mistrusted. James Madison