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Tesla vs. Car Dealers: the Lobbyist Went Down To Georgia

Posted by timothy on from the which-interest-is-the-most-special? dept.

McGruber writes The Atlanta Journal Constitution (AJC) newspaper's Jim Galloway has an update on the behind-the-scenes battles over who can sell you a new car: "Traditional car dealers are in the midst of a legal fight to push Tesla, the fledgling California electric car company, out of Georgia. Never mind that metro Atlanta is one of the hottest markets for electric vehicles in the nation. Signs point to a parallel battle in the General Assembly. Last week, the National Automobile Dealers Association began trolling for sympathetic lawmakers. While Georgia dealers say they have "no plans" to revisit an anti-Tesla bill that failed last year, Tesla is preparing a defense. It has already hired one of the top lobbying firms in Atlanta."

The Georgia Automobile Dealers Association wields considerable influence in the state Capitol; the AJC determined that the Georgia Auto Dealers Association (GADA) had made over $600,000 in recent campaign contributions to state lawmakers. Despite those contributions, a bill to boot Tesla from Georgia mysteriously died during last year's legislative session. While no legislator would claim credit for killing the bill, Galloway noted that Lt. Gov. Casey Cagle, who presides over the Senate, drives a Nissan Leaf.

5 of 190 comments (clear)

  1. Lobby = Corruption by Felgior · · Score: 4, Interesting

    Lobbying, is corruption clear and simple. They should jail everybody connected to it.

    1. Re:Lobby = Corruption by Anonymous Coward · · Score: 5, Interesting

      All of us should have the right to lobby our legislators and legislatures.

      Where it's a problem is when we have these professionals and big money behind them to effectively give them a larger voice than the rest of us.

      How can one compete when you have to take time off of work to drive over, somehow get through security, and then get to talk to an intern; whereas the big money guys, get to take the actually politician out to an expensive meal, rides on their private jets and other attention getting things that are waaayyy beyond you or me?

      And then there's the human nature thing. People take rich people more seriously than regular people. Got a billion bucks? Well, just having it makes your opinion more important even no money or favors are exchanged - because we are all primates and act like it when it comes down to it; bald ape.

      And as a Georgia resident, I can assure you that our current politicians are all Hollywood Stereotypes. No one is called Boss Hogg - yet, though. You want material for a corrupt Southern Politician, come'on down here, boy!

    2. Re:Lobby = Corruption by jklovanc · · Score: 4, Interesting

      How can one compete ...

      A single person can not compete but groups can and do. Groups like ACLU and AFL-CIO lobby and contribute to campaign on behalf of there members all the time. Tesla does it too.

      The thing is that lobbying is necessary as it is the only way to put alternate positions in front of the politicians.

  2. Re:I'm shocked, SHOCKED! by PPH · · Score: 3, Interesting

    Independent GM/Ford/Toyota/whatever dealers don't want to compete with direct manufacturing sales. And they should not have to. Independent Tesla dealers should be protected by the same rules.

    What? You're saying there are no independent Tesla dealers? Then it isn't even the same industry we are talking about.

    --
    Have gnu, will travel.
  3. Re:I'm shocked, SHOCKED! by vakuona · · Score: 4, Interesting

    How exactly do dealers prevent manufacturers from setting prices? How do they force BMW and Mercedes from demanding a specific wholesale price. And if a wholesale price is high enough for BMW to not care who sells their car (as long as they take responsibility for service/maintenance) why should they care.

    Tesla doesn't want to be in a showroom where the dealer is trying to sell other cars. It would be too easy for a dealer to push people towards other cars if they believe Teslas are a hard sell. Their success does not depend on selling Teslas. It depends on selling lots of cars, and they don't necessarily care which ones they sell. Unless, of course, Tesla gives them very large inducements to sell their cars.

    Basically, they want to run a protection racket - give us large commissions/discounted wholesale prices, or your lovely electric cars won't sell.