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Dealership Commentator: Tesla's Going To Win In Every State
cartechboy writes Unless you've been in a coma for a while you're aware that many dealer associations have been causing headaches for Tesla in multiple states. The reason? They are scared. Tesla's new, different, and shaking up the ridiculously old way of doing things. But the thing is, Tesla keeps winning. Now Ward's commenter Jim Ziegler, president of Ziegler Supersystems in Atlanta, wrote an opinion piece that basically says Tesla's going to prevail in every state against dealer lawsuits. He says Tesla's basically busy defending what are nuisance suits. This leads to the question of whether there will be some sort of sweeping federal action in Tesla's favor.
No company should be prevented from selling their products directly to the public. Land of the free indeed.
So, you are starting out as a small manufacturer. You've got a product you think people would like, but you don't have the money to build a network of your own retail outlets. So you shop around for a general retailer willing to put your stuff up on a shelf.
The minute your product gains any market share, part of that agreement will be that you don't compete with the retailer within a certain geographical area. And when you start moving large volumes of product through a retailer, your cost to get to the equivalent market goes up. So its a barrier to entry.
That's why many manufacturers' outlet stores are way out in the sticks. No existing retailers cover that area, so outlet malls spring up.
Have gnu, will travel.
The dealer shill thus spake:
the local dealer may have overpriced their product so you buy elsewhere, but that local dealer is still obligated to do the warranty service (for which they are paid quite well by the manufacturers).
In no other industry is this true. In electronics, white goods, etc, there are "certified warranty service centers" where you can call up and get them to fix your stuff. For example, you don't have to go to an Apple dealer to get your high-priced computer fixed under warranty - you can bring it or ship it to one of many service centers.
https://www.apple.com/lae/supp...
Please note that the requirement to become a service center does not include having to be an Apple reseller.
Ford, Volkswagen, Jaguar, Chevrolet, etc., should be able to certify garages for warranty work. But no, the automobile industry is the only industry where you have to go to a dealer to get warranty work done.
Leeches, all of you. Die already.
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BMO