Tesla to Texas: How Do You Like Us Now?

[YALE]

I don't see how social anything comes into this. It's the dealer network. Both Yale and I were both employed by an auto dealer in the past. I still get business from them, the auto finance industry is also dependent on them. Tons and tons of people are employed by that system. That's the issue here, there's a lot of jobs on the line. Is this really a better idea? I currently don't understand what Tesla intends to do, and I think if they really want to change opinion they need to explain it better. How exactly is this going to work? Why can't Tesla operate like every other manufacturer on the planet? Why do they deserve separate treatment? Honda, Toyota, GM, Ford, Nissan, etc. all operate under a dealer network?

Poor choice of words. Neo-cons, then. Nominally, I suppose there's a difference.

[Hmbre97]

I don't see how social anything comes into this. It's the dealer network. Both Yale and I were both employed by an auto dealer in the past. I still get business from them, the auto finance industry is also dependent on them. Tons and tons of people are employed by that system. That's the issue here, there's a lot of jobs on the line. Is this really a better idea? I currently don't understand what Tesla intends to do, and I think if they really want to change opinion they need to explain it better. How exactly is this going to work? Why can't Tesla operate like every other manufacturer on the planet? Why do they deserve separate treatment? Honda, Toyota, GM, Ford, Nissan, etc. all operate under a dealer network?

This whole situation sounds like when unions are under threat of getting run out of town. I say if Tesla can sell directly and cut out the middle man to streamline the process and save costs, so be it.

If the dealer network was the most efficient way of doing things, they wouldn't be worrying about losing jobs. The only jobs being threatened are probably jobs that need to be eliminated anyway.

[CJ]

This whole situation sounds like when unions are under threat of getting run out of town. I say if Tesla can sell directly and cut out the middle man to streamline the process and save costs, so be it.

If the dealer network was the most efficient way of doing things, they wouldn't be worrying about losing jobs. The only jobs being threatened are probably jobs that need to be eliminated anyway.

You seem to be missing the point regarding centralizing operations. I will summarize, it allows companies to move jobs out of the state.

[talisman]

Useless outdated jobs being needlessly extended is not doing this country or its future any favors. It amazes me how hard this country fights against innovation. And god forbid you try and sell a car in this country that isn't from the big three. Ask Preston Tucker how that turned out for him. I don't even see why dealerships are necessary. Buying a car should be like buying a TV, or anything else. It isn't like there is a shortage of capable shops out there, and it isn't like the dealers have better mechanics than your average shop either. I'm of course talking about reputable national chains, not Pedro's Tire Shop that tells you you need a new engine after getting a nail in a tire.

[Baron Von Crowder]

I can see some good and bad in both areas.

Good: take the GVF deal that popped up on here recently. Centralized management can pretty much make each store run the same way, at least closer than franchises. Prices will be the same across the board, similar to how BMW does it. There's not dealer markup to come into play. Repair and warranty would be run corporately, but with different local contracts just like any other corporate operation. Centralized finance departments would run the same way, etc.

The downside: I deal with this stuff on a daily basis, different regions work differently due to many various factors, including laws. Many times, you cant cookie cut everything and have it work flawlessly throughout the country. Sometimes, that is exceedingly hard to get through people's heads in a corporate environment.

[Baron Von Crowder]

Useless outdated jobs being needlessly extended is not doing this country or its future any favors. It amazes me how hard this country fights against innovation. And god forbid you try and sell a car in this country that isn't from the big three. Ask Preston Tucker how that turned out for him. I don't even see why dealerships are necessary. Buying a car should be like buying a TV, or anything else. It isn't like there is a shortage of capable shops out there, and it isn't like the dealers have better mechanics than your average shop either. I'm of course talking about reputable national chains, not Pedro's Tire Shop that tells you you need a new engine after getting a nail in a tire.

See: the Sears Allstate.

Sold solely through Sears, it was a rebadged henry J. Had a more luxurious interior, LIFETIME WARRANTY through Sears, and was cheaper than the Henry J. Sears did not accept trade-ins, and only sold less than 3000 units before being discontinued after only two years.

[talisman]

See: the Sears Allstate.

Sold solely through Sears, it was a rebadged henry J. Had a more luxurious interior, LIFETIME WARRANTY through Sears, and was cheaper than the Henry J. Sears did not accept trade-ins, and only sold less than 3000 units before being discontinued after only two years.

Just did some reading on that. Pretty cool, I'd never heard of them. I'd like to have one of the US badges from one.

[Baron Von Crowder]

Just did some reading on that. Pretty cool, I'd never heard of them. I'd like to have one of the US badges from one.

It was a topic discussed in a marketing class I took in college. An idea that literally should sell itself (cheaper, nicer, incredible warranty, delivered in the color and trim of your choice to your local store or even your home) that failed miserably. They werent available for test drives, few were actually at stores for people to see. The sears catalog was at that time the most widely distributed piece of advertising, and one of the largest retailers in the country, if not the largest. Everyone (figuratively speaking) had a sears catalog, so advertising shouldn't have been the issue with the low sales.

[talisman]

It was a topic discussed in a marketing class I took in college. An idea that literally should sell itself (cheaper, nicer, incredible warranty, delivered in the color and trim of your choice to your local store or even your home) that failed miserably. They werent available for test drives, few were actually at stores for people to see. The sears catalog was at that time the most widely distributed piece of advertising, and one of the largest retailers in the country, if not the largest. Everyone (figuratively speaking) had a sears catalog, so advertising shouldn't have been the issue with the low sales.

From what I read they generally cost 1600 at a time when a Ford cost 1500 and a Chevy was 1550, and both were well established and trusted by the early 50's. At any rate there are a considerable number of factors that go into people making the decision to make a large purchase that is usually second only to a house. Tesla and any other manufacturer should be able to experiment and find a way they are happy with to sell their product.

[Baron Von Crowder]

From what I read they generally cost 1600 at a time when a Ford cost 1500 and a Chevy was 1550, and both were well established and trusted by the early 50's. At any rate there are a considerable number of factors that go into people making the decision to make a large purchase that is usually second only to a house. Tesla and any other manufacturer should be able to experiment and find a way they are happy with to sell their product.

I think it's going to take someone like Tesla to do it differently and being successful will shake up the industry. Especially with the Autonation, Group 1, Sonic and Van-Tuyl owning a large percent of dealerships.

[Ruffdaddy]

Is it a correct observation the the main defense for a dealer network is job creation? It literally sounds like there aren't many other reasons...again if tesla thought that were best, they would have a network.

[YALE]

Is it a correct observation the the main defense for a dealer network is job creation? It literally sounds like there aren't many other reasons...again if tesla thought that were best, they would have a network.

And if that's a concern, they're creating a lot of jobs, just not in the states that are forcing dealer franchising on them.

[bcoop]

And if that's a concern, they're creating a lot of jobs, just not in the states that are forcing dealer franchising on them.

Agreed. They're still creating jobs, it just allows them to keep a tighter control on things.

[Trip McNeely]

If I could take the haggling part out of purchasing a car, I would be 100% on board with direct. When I go in to buy a car, that's the last thing I want. I know what I want, I have done my research (thank you internet) and more than likely I will have driven one beforehand. There's nothing more frustrating than the dance of payment terms, and how much can we fuck you with numbers game. If I could order a car online from the factory that would be even better. And as far as servicing, especially on a luxury auto 9 times out of 10 I will find an experienced independent mechanic that doesn't charge 180 bucks for labor. So Kudos to Tesla on that aspect.

[jw33]

The dealership cartels spinning this into a campaign to save/create jobs and protect the consumer is a complete farce. I don't believe the angle that if buyers can buy directly from the manufacture that it somehow gets rid of the majority jobs in the industry. People will still need to have their cars serviced and some will want to speak to a person about all the features before they spend their money. And even if it was true that millions of people in the auto industry would be out of a job, does that make it right? I mean let's really create some jobs and force farmers to pick their crops by hand, ban online streaming services and bring back VHS tape rentals, hell make the internet illegal and make all information be transcribed by hand onto paper....