New Jersey Auto Dealers Don't Want to Face Tesla

cartechboy writes "It feels like this story is becoming repetitive: X state is trying to ban Tesla stores, or the ability for an automaker to sell directly to a consumer. Either way, it's all aimed at Tesla. Now it's New Jersey's turn as a hearing today could end up banning Tesla stores in the state. Naturally Tesla's displeased with this and is crying foul. A rule change that is expected to be approved today would require all new-car dealers to provide a franchise agreement in order to receive a license from the state. Obviously Tesla (the manufacturer) can't provide a franchise agreement to itself (the distributor). The proposed rule would also require dealers to maintain a 1,000 square foot facility, the ability to show two cars, and service customer cars on site. Tesla doesn't meet that last requirement at any of its galleries, and most of the Tesla stores are located in shopping malls which mean they are smaller than 1,000 square feet. Tesla's arguing the New Jersey Motor Vehicle Commission is overstepping its bounds. Will Tesla be able to defeat this new rule in New Jersey as it has overcome issues in many other states?" (Also covered by the Wall Street Journal.)

Comments

Don't get it

[Tanktalus]

The right wing should be opposed on free-market principles. The left wing should be opposed on environmental grounds. So which politicians should be in favour of this regulation again?

Re:Don't get it

[gandhi_2]

Free market principles? How about plain old freedom?

How about the enlightenment principle that government can't simply make up whatever laws it wants. There is no such thing as liberty if a local dictator can tell you what lightbulb to make or how to sell cars.

Why not force the regular car dealers to also bundle horse buggy whips with all car purchases to protect the horse-buggy-whip establishment.

This is another uber ridesharing story with different players. North Korea only has one dictator at a time. In the US we have thousands, spread across 4+ levels of government.

hehe

[Ol Olsoc]

If you can't beat 'em, ban em.

Since we are constantly regaled how awful the Tesla is. - They all burn up, they are stupid, They are too expensive, I can't drive the Trans American Highway in one, electric cars suck - why don't we just let the free market do what it always does, eliminates bad products.

I'm pretty sure at other times, car dealership owners are all about the free market, competition, and the heartbeat of America.

Re:So what?

[Nethemas the Great]

Since when does the quality of customer service become the purview of law? There are no dishonest dealings going on. Customers enter into these purchases fully aware of the requirements of ownership. No one expects Walmart to provide a service center for the electronics they sell, nor a seamstress for their clothing.

This is protectionism and corrupt politics as can only be done at the local level pure and simple.