Tesla Pushes Even More States To Upend Auto Dealer-Friendly Laws (arstechnica.com)

An anonymous reader quotes a report from Ars Technica: Tesla is now pressing ahead with lobbying efforts that would allow it to expand its direct dealerships in two more states: Nebraska and Wisconsin. For now, more than 20 states already allow the California automaker to sell its own vehicles, while others have set up a system that at least partially bans manufacturers from direct sales and effectively protects auto dealers. Those states include Texas, Michigan, West Virginia, and Utah, among others. Last year, court rulings and changes in the law in Arizona, Missouri, Indiana, and other states have paved the way for Tesla to sell directly to the public. In Nebraska, the new bill under consideration is known as LB 830. It has been met with opposition from existing dealers who are concerned that other manufacturers like GM or Ford will want a similar arrangement. Similarly, in Wisconsin, SB 605 would carve out an exception in state law for a "manufacturer [whose] motor vehicles... are propelled solely by electric power."

Comments

This is uniquely a US problem.

[Anonymous Coward]

No where else in the world do these types of protectionist laws for car dealerships exist. They were originally intended to protect car dealers from having to compete with a manufacturer if they wanted to start up their own dealership. Manufacturers were pushing less successful models to their dealers. This was all in the 1920 or 1930's.

Now, the dealerships are using this law as a guise to "protect the consumer", but really it should be transparent that they're doing it because it's easier to lobby and legislate your competition away than to actually compete with them by trying to sell cars.

Re:Someone remind me again...

[Strider-]

Because it actually made sense 70 years ago. The manufacturers would sell the vehicles, but not provide the service/support/parts infrastructure that was required to actually service them (given the poor reliability). Putting the dealerships brought about the parts/service stuff that the dealerships weren't providing.

In the modern era, when vehicles are much more reliable, and there are parts/service infrastructure separate from the delaerships, it no longer matters. However, in small town america, the dealerships are often the larger businesses in town, and thus have a significant amount of clout when it comes to state lawmakers.