Poll: How Should Auto Dealerships Sell New Vehicles?
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Electric auto manufacturer Tesla has been having trouble selling the model S in many states, but not due to lack of interest from potential customers:
Tesla’s fight with dealers across the country has increased scrutiny of U.S. auto franchise rules that go back decades. Already, Texas and Arizona have barred Tesla from selling cars directly to customers. New York auto dealer lobbying groups last week reached an agreement with Tesla to maintain its five company-owned stores, and Ohio lawmakers approved a similar measure. (NJ.com)
This month a bill in the Missouri legislature would’ve added Missouri to the list of states prohibiting Tesla from selling direct to customers, bypassing the usual franchised dealer arrangement.
Last week, with only a week remaining in the legislative session, the Missouri Senate made an amendment to alter a run of the mill, non-controversial House bill to prevent the sale of vehicles direct from a manufacturer. Tesla snapped into action and called a press conference Monday, trying to get word out about the amendment.
Tesla’s executives say few people actually support the auto dealers’ position. Tesla’s game plan is to get the word out fast, and count on public pressure to derail anti-Tesla legislation. In other states, like New Jersey, where dealers were successful in ending Tesla’s direct sales, public sentiment was decidedly against the dealers’ position. (WSJ)
For now Tesla can continue to sell vehicles directly to customers in Missouri, the change didn’t pass. But should it have? Do independently-owned dealerships protect consumers from auto manufacturers? The poll this week asks how auto manufactures should sell cars, the three main choices are:
- via franchised dealerships only
- option of direct to consumer
- low volume manufacturers should have option to sell direct
The poll is at the top of the right sidebar in desktop view. Full disclosure: we have shares in General Motors (GM).
— Steve Patterson
