All things being equal, auto dealers would be happier if consumers had to go through auto dealers to buy stuff.
Rep. Soliday (317-232-9815) has introduced HB 1592 which would prohibit Tesla’s direct sales to consumers. It does not mention Tesla Motors specifically, but its criteria apply only to Tesla. Under the legislation, a manufacturer cannot sell directly to consumers if it sells more than 1,000 unites and has had a license to sell directly to consumers for more than six years.
James Briggs, writing for the Indianapolis Star, has an article discussing the proposed legislation.
The bill applies to manufacturers that have sold cars in Indiana since July 2015 and have never used a franchised dealership. Such a company would have to stop selling cars directly to consumers either after its sales surpass 1,000 cars per year, or six years after its dealer’s license is granted.
Hey, what do you know, there’s exactly one company that will soon be out of compliance with this bill. Tesla, which received its dealer license in December 2013, would have to shut down its Indiana sales in 2019.
It’s no secret that automakers, dealers and some legislators want to stop Tesla from doing business in Indiana and other states. That’s because Tesla is the only company that sells straight to consumers.
Tesla and its enthusiasts are expected to object. However, auto dealers are a powerful political force. They fear that Tesla’s business model might expand.
What’s always funny, when reading about this bill, is they can’t manage to find any actual voters to come ask for these “protections”.
What happened to letting the free market work?!
(That was sarcasm, for the record)
Maybe, but a lot of truth in the statement particularly from a group who mouth the words often. But, see bills such as this one or no Sunday liquor sales, etc. that kind of look like redefining “free market” or “free enterprise”.
Yeah, they are all “in favor” of markets and competition, except then they have to compete in the market.
And why to I hear the heavy dropping of crocodile tears on the floor of the Indiana House when I read this:
Nick Dellen, president of the Greenfield-based Dellen Automotive Family, said in an interview that Tesla’s new mass-market car raises concerns that middle-class buyers could be harmed if their car breaks down and they can’t get it fixed. Tesla has a store at the Fashion Mall at Keystone in Indianapolis, but no service center.
And why to I expect that Dellen would like nothing better than to see cars being sold to his dealership demographics that cannot be repaired locally.
Tesla has been working on a service center for most of this year.
Cool. Actually, a Tesla would not be a bad car for us. We almost never drive out of Fort Wayne and rarely go beyond 150 miles of home. 30,000 is not an unreasonable price if it is very reliable and long-lived. I am used to driving everything to at least 300,000.
It’s not like the Tesla is a cheap car. The Model that STARTS at $35k may be available in the summer. I wonder if other car companies are not so afraid of Tessa as they are of one another.
I think the dealers are afraid of other manufacturers (like GM) starting to think the direct-sale model is a good idea.
Lots of people are afraid of the future. Only those who write checks to legislators get protection.
I’m convinced that the GOP isn’t interested in passing any legislation in which their constituency desires; unless by pure coincidence (e.g. Farmer Steve doesn’t like people peeing next to him at the men’s room in Denny’s).