Tesla's license to sell cars in Missouri expiring

[pstokely]

Source: STL Post Dispatch

The California-based electric car maker lost a court battle in August when Cole County Circuit Court Judge Daniel Green ruled that Tesla is not a franchisee and its motor vehicle dealer licenses should not be renewed by the Missouri Department of Revenue.

On Wednesday, the judge denied Tesla’s motion to stay, or temporarily halt, the judgment while the ruling is appealed. Tesla’s motor vehicle licenses for its stores in University City and Kansas City expire Saturday.

In 2015, after Tesla was issued dealer licenses for its two Missouri stores, the Missouri Auto Dealers Association sued the revenue department, alleging Tesla’s direct-to-consumer model violates state law. MADA is a Jefferson City-based trade group that represents new-car and new-truck dealers.

In his ruling in favor of MADA’s motion for summary judgment in August, Judge Green wrote that “a single entity may not manufacture vehicles for sale in Missouri and possess a Missouri new motor vehicle dealer license,” under state law.



Read more: http://www.stltoday.com/business/local/tesla-s-license-to-sell-cars-in-missouri-expiring/article_b4f52be1-3df6-59ba-9455-73a9657ad865.html

[Stuart G]

1. So much for the idea of .."fair competition" that they always talk about....nt

[ToxMarz]

5. I think those laws came to be to promote fair competition

Back when the auto manufacturers were dominant, they had problems with warranty and service issues along with monopoly pricing so the dealer model was used to give some local control and competition. Whether that is still necessary I don't know, but it was implemented to address a real problem of the time. Also there is an established business community and numerous jobs invested in the system that have played by the rules Tesla wants to circumvent.

[7962]

7. Here's another example thats always irritated me:

I live in Ga. Here, if you own a bar or club, whatever, you MUST buy your beer from the "area distributor". You live in Macon, you cannot go up to Atlanta and try to get a better price, you HAVE to use the Macon beer distributors. Why? Only reason I;ve ever been able to come up with is that the beer distributors donate a lot of money to politicians

[ToxMarz]

8. I don't know what the reason behind the liquor distributors monopolies is

It's a little different though because the auto dealers do compete with each other, which was the purpose. Before that it was more like the liquor distributors where there was only one game in town and they worked for the manufacturer. Cars also are, other than a home, usually people's most expensive purchase and important to daily life. Liquor kind of a luxury/vice product.

[Hassin Bin Sober]

9. Yeah. I used to work for a dealership so I sometimes can see issues from the dealer perspective

The manufacturers would love to bypass the dealer. But there are state consumer protection laws that require a dealer/manufacturer presence (parts and service) and VERY strong franchise owner protections to protect the dealer who have millions invested to maintain that presence.

Yeah, dealers have a very strong lobby. My buddy worked for State Legislator Larry McKeon helping craft consumer protection law that was considered anti dealer. I remember him telling me "you fuckers have a hell of a lobby"

[Plucketeer]

2. I'm SO glad

I no longer live in the South.

[7962]

3. I think Missouri is considered part of the Midwest, not the South

Nobody in the South considers them "Southern"

[TexasBushwhacker]

4. True, but it is a former slave state

So in that sense it could be considered part of the South.

[Plucketeer]

6. Well then

I'm SO glad I don't live in Misery