Like all businesses they don't want to have to compete. FWIW this story has been out for a few days. Hopefully it will get deep sixed ASAP.

 

The franchise laws were intended to protect a dealer who has invested heavily in a dealership from direct competition by the car company they paid for the dealership. It is to protect existing dealers from their supplier undercutting them. It was never a mafia-type "all car companies MUST sell through dealers" law.

Tesla does not have dealers, so they can't harm any. But the dealers for other car brands feel it's unfair for a company to sell direct to a consumer (like Apple, McDonalds, etc. do). Instead, they want all sales to be funneled through a dealer. Why? Greed, fear of actual competition, and a percieved threat to their good old boy monopoly.

 

Well, that may be the intent of franchise laws, it's not the effect and it extends past the auto industry. Maryland, for example, banned refiners from operating gas stations. We had a small local refiner who had a few stations around who were seriously undercutting the big guys and their franchisees (though an oil franchisee is usually allowed to buy oil on the spot market rather than being a tied house).

If you really want to see the ugly side of things, ask about the triple-tier alcoholic beverage distribution morass.

Actually, there are a lot of businesses (retail, food, electronics) where the factory owned consumer outlets DO compete directly against the franchisees/independent retailers.

 

If you want to see direct democracy in action, peruse this thread:

http://www.teslamotorsclub.com/showthread.php/30907-Trouble-in-Missouri

A few Missouri state senators stuck anti-Tesla language in an unrelated bill. Somehow, Tesla got wind of it and posted it on their Web site.

Now Missouri Tesla owners and supporters are raising heck. The amendment's principle sponsor closed his Facebook page to comments. There will be a Tesla drive-by at the state capital on Monday. I've looked at five comment boards and there was exactly one comment in support of the auto dealers.

We should watch and learn. There are very powerful forces making a lot of money selling gasoline. If EVs start to make a real impact on gas sales, we need to be ready for the blow-back.

 

It looks like Tesla and the Tesla owners and fans have defeated a sneak attack on Tesla-owned sales locations in Missouri. The final argument by the dealers was that if BMW bought Tesla, the Missouri Tesla stores might start selling BMWs in competition with BMW dealers. The dealers and Tesla agreed to close that loophole next year. It's a far-fetched possibility, but it lets the dealers' paid lobbyists claim that they accomplished something.

Of course, Volt owners have regulatory concerns as well:
1. Anti-ICEing laws.
2. Taxes to replace gas taxes.
3. HOV lane access.
4. Charging station availability in municipal lots.
5. Charging rights in multiple-family dwellings.
6. Federal and state purchase rebates.

I have two take-aways from the Missouri Tesla campaign:
1. Note the very close tactical coordination and information-sharing between Tesla owners and Tesla staff and lobbyists in fighting against the new law. I think this goes against GM's DNA, but companies can learn and change. After all, corporations are people.
2. Note how some Tesla owners knew who the real legislative leaders were and identified owners in those legislators' home districts. You're not going to convince a legislator who's an ex-dealer or who's been bought off, but the leaders are subject to so much lobbying from all sides that they can be swayed by rational arguments. And no legislator wants to tick off an angry and energized group of in-district voters.

BTW, if you really want access to your state legislator, work on his or her campaign. I'm working on the Texas Governor's race and have as much access to my candidate as I could want. Unless you're a billionaire, making phone calls and knocking on doors is worth more to a politician than your money. Color mailers, paid outsiders and robocalls have less impact every election. People just tune out. Neighbors make the difference.

This link describes the process. Check out the last pages first.
http://www.teslamotorsclub.com/showthread.php/30907-Trouble-in-Missouri

And here's the outcome:
http://politicmo.com/2014/05/13/anti-tesla-bill-is-dead-in-missouri-says-house-leader/

 

http://www.bloomberg.com/news/2014-05-17/tesla-gets-missouri-break-as-house-lets-direct-sales-ban-wither.html

The results are in. A close alliance of Tesla owners and Tesla Corporation beat back an attempt by the 400 new car dealers in Missouri to ban direct sales, even by a manufacturer with no franchised dealers.

We should consider this model to advance the Volt agenda.

What do you think?

 

Also on that front, the FTC had been asked to comment on the NJ and proposed MO law.
The FTC statement had a unanimous 5-0 vote.

http://www.ftc.gov/news-events/pres...releases/2014/05/ftc-staff-missouri-new-jersey-should-repeal-their-prohibitions

My favorite paragraph:

According to the comments by staff from the FTC’s Office of Policy Planning, Bureau of Competition, and Bureau of Economics, current laws in both jurisdictions “operate as a special protection for [independent motor vehicle dealers] – a protection that is likely harming both competition and consumers.” The comments note the staff’s strong opposition to state laws that mandate a single method of distributing automobiles to consumers.