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Discussion Starter · #1 ·
This is an update to the post that Room_A113 started a few days ago. "Tesla petition to allow direct sales in all 50 states"
http://gm-volt.com/forum/showthread....tesla+petition

As of this morning, the petition needs 25K more signatures to hit the 100K threshold by this Friday. It's very close. Let's not let the petition die. If you feel that this is an important issue, and haven't voted yet, please use this link to do so. Tell your friends. Thank you!

http://wh.gov/llpAp
 

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I will when I get home this evening to get my account comfirmation e-mail. This is important and I for one want Tesla to succeed.
 

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Discussion Starter · #3 ·
Thanks, Tom.
As of 1 P.M., the needed vote count was down to 21,987. I think we've got a good chance at it.
 

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These online petitions are fairly useless. After 100k signatures it will get a response from some intern in the whitehouse giving a canned response. Just see some of the other responses to other petitions which crossed this threshold.

A much much more effective way to reach the people (read: senator and state legislator) in charge of these laws is to organize at the state level and overturn or change the existing laws.

I think it's also important to understand the history of the dealer protection laws. Dealers invest a lot of money to start a dealership, and it's a big risk for them. If every car manufacturer had the option of opening a dealer across the street from their most profitable dealerships and being able to offer better and more profitable discounts, there would be a competitive problem. For a brand new company like Tesla, these laws don't make sense, but for traditional car manufacturers who decided to use a traditional dealer network I think there should be some protections for the small businesses who are heavily invested in providing that service.
 

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As "useless" as this petition might be, I signed it a few days ago. Let the market decide if Tesla can sell cars directly, not politicians or draconian laws.
 

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bump

There should be two categories:

1) Manufacturer that have dealers.
2) Manufacturer that do not have dealers.

Let a manufacturer choose which category to be in, but once in category 1, you cannot switch to category 2, or it would be unfair to the dealers.

Seems simple?
 

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By saying the petition is useless I didn't mean to imply that the goal of the petition is useless, only that simply signing the online petition will most likely be relatively ineffectual at changing the actual laws on the books. The most effectual thing to do is organize the at the state-level to push state senators and legislators to get laws passed which clear the way for Tesla to sell direct to customer. I believe this is also Tesla's political strategy.

The best thing to do is to understand the history of the dealership protection laws, and propose a reasonable alternative. The law was meant to protect (for example) a small Ford dealership which provided the initial investments to set up the dealership against Ford the company from competing directly with them. It is absurd that (for example) a Ford dealership could claim that Tesla the company will make car sales less competitive in their region. In my opinion the law should be re-written to include a clause which states that the only violations that could occur are from an official dealer filing claims against the official brand they are re-selling. Cut off the loop hole in the law which states that a car dealership can bring a case against a completely unrelated car company and the problem goes away.
 

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I think it's also important to understand the history of the dealer protection laws. Dealers invest a lot of money to start a dealership, and it's a big risk for them. If every car manufacturer had the option of opening a dealer across the street from their most profitable dealerships and being able to offer better and more profitable discounts, there would be a competitive problem. For a brand new company like Tesla, these laws don't make sense, but for traditional car manufacturers who decided to use a traditional dealer network I think there should be some protections for the small businesses who are heavily invested in providing that service.
I am exactly the looney left wing liberal that scares the right. So why am I the one who thinks that dealerships should have put this restriction into their contract with the manufacturer and not expect a law to protect them?

When McDonalds signs a franchise agreement, it includes such restrictions but doesn't prevent the McDonalds from opening a location in some remote place when no other private enterprise wants to make that investment.
 

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I'm not saying whether it's right or wrong, but the majority of laws are written and supported by politically powerful groups. The dealership group happened to win this battle in the past, so these are the laws on the books. I am in complete agreement that the laws are draconian, out of date, and even downright silly. The way to get them repealed is the same way they were passed, by pressuring the people in charge of the legislator to make a change. That traditionally happens at the state level.
 

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There is now 90500 signatures registered.
Only 9500 to attein threshold.

It is very possible that we see it reach 100 000

Francois
B2653
 

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I just signed the online petition, but I was not happy that I had to register with the White House...I don't want to receive any propaganda spam from them....do you copy that NSA ??
 

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I just signed the online petition, but I was not happy that I had to register with the White House...I don't want to receive any propaganda spam from them....do you copy that NSA ??
I registered a couple of years ago and never received anything. As for the NSA, we're well aware that they hardly need us to register anywhere to be collecting data...
 

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Cars, houses, and hospitals are three consumer purchases where you can't simply shop around for the best price.

A home theater system may cost thousands of dollars and different sellers offer different prices and different levels of service, but you can get Best Buy's best price by walking in the door. An unsophisticated buyer may get upsold, but he still gets the best price for what he buys.

Hospital pricing for the uninsured is so complicated that it takes a course in medical coding just to talk the language. A sick person whose employer doesn't offer insurance will be spending his life savings on $10 aspirins.

Home buying is a negotiation where the agents are not really working for the buyer or the seller, they're working to close the deal. Buyers who forget that get screwed. Buyers who know the game get the best deals.

Car buying is even worse because there is less government regulation of the sales process. According to the Wall Street Journal, dealers make most of their new car profits from the trusting buyers who pay the "pre-negotiated" price. Not everyone can bargain well.

Dealers say that direct sales will take out the element of supply and demand. Not so, it just means that buyers will benefit equally when oversupply drives down prices. Right now, some buyers wind up paying MSRP in the midst of a glut. Clever salesman = gouged buyer.

Dealers also argue that they are motivated to give the best service. This board is full of stories of some dealers giving superb service and others treating cars to the "sunshine treatment" instead of finding the problem.

Direct sellers vary as well, but Brooks Brothers or Lands End or Apple will do what it takes to satisfy a customer, the same as the best independents.

I agree that dealers should get some protection from direct competition in the same brand in the same local market, but it should be of limited duration. After that, car dealers, who like bargaining so much, can negotiate exclusive territories with their suppliers.
 
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