Elon Musk Slams Christie for Banning Tesla Sales in NJ, uses "bridge closure...to sell you" line

[lowkell]

http://scalinggreen.com/2014/03/elon-musk-if-you-believe-nj-banning-tesla-sales-was-about-consumer-protection-gov-christie-has-a-bridge-closure-he-wants-to-sell-you/

[prommie]

1. Is everyone familiar with the traditional customer service/warranty model in the electronics biz?

You know, the "F-you, its your problem" service model? Or else they will fix the product, but only at their one single facility in San Diego. or China.

Well, the franchise laws are responsible for the system in place for automobiles, for why there is a dealership not far away no matter where you are, and you can choose the most convenient.

Cars are a much more critical part of American life, you cannot get to work or school or anywhere without your car. you want to have to drive it across the State to the one single Tesla service facility?

It really is about consumer protection and consumer safety.

[Rectangle]

2. Prommie, please clarify your post, so you are standing up for Christie banning electric cars?? n/t

[BlueStreak]

3. Prommie can speak for him/herself, but let me take up one of the points

Yes, there is an element of collusion in the dealership business, just as in alcoholic beverage distribution in most states. In both cases, the origins for this were well-intentioned, and they were about the well-being of the consumer. But the insiders have taken maximum advantage of that to construct fortresses that cost consumers billions of dollars unnecessarily. And that is what Musk is complaining about.

Considering that every time a person gets in a car, all of us are put at risk, is the public well served by a system that strongly encourages consumers to have a connection with dealerships for regular maintenance? I think that is a good argument. After all, Tesla cars have brakes, suspensions, steering systems and wheel bearings just like all other cars. And if they are not serviced regularly and professionally, they are every bit as dangerous as internal combustion cars.

Of course, there are no laws that say customers have to use dealerships, and many people never go to a dealership for anything. It seems to me that the issue is safety of the vehicles, and that could be adequately addressed with inspection laws.

But there is also an argument that ways if a company puts out a lot of lemons, the public is well served if there are adequate dealerships in the local area to be held accountable. So there you go.

Musk wants to argue that there is fundamentally no difference between a car and a Mr. Coffee machine and he ought to be allowed to sell the things any way he wishes. I don't think that is good enough.

Besides, I keep hearing that Tesla is about to take over the whole automobile industry, so why wouldn't he want to have outlets in every major city anyway?

[bananas]

5. Does NJ still ban self-serve gas stations? nt

[BlueStreak]

6. Yes -- the last time I was there (last summer)

It is a good example of the same thing. It might have made sense at some stage, but not anymore. I don't know who really benefits by that other than employment of minimum wage attendants.

The car dealership and liquor distributorship thing is a little different in that it has become a powerful interest group feathering their nest. I think Exxon would happily go to self serve.

[busterbrown]

9. I too am awaiting his reply...

Are people saying that Tesla wouldn’t be concerned about liability and warranties?
From what I hear they have a wonderful product and it would not make much sense if they had a “fuck you, its now your problem" attitude...

[SunSeeker]

8. What Tesla offers is even better. They will come to YOU.

And give you a loaner. All at no extra charge. Check out the Tesla website. The purported dealers' concern is bullsit.

[Rectangle]

4. What happened to the free market? n/t

[SunSeeker]

7. What an epic smack-down! The full quote from the link:

On Tuesday, under pressure from the New Jersey auto dealer lobby to protect its monopoly, the New Jersey Motor Vehicle Commission, composed of political appointees of the Governor, ended your right to purchase vehicles at a manufacturer store within the state. Governor Christie had promised that this would be put to a vote of the elected state legislature, which is the appropriate way to change the law. When it became apparent to the auto dealer lobby that this approach would not succeed, they cut a backroom deal with the Governor to circumvent the legislative process and pass a regulation that is fundamentally contrary to the intent of the law.

[...]

The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures “consumer protection”. If you believe this, Gov. Christie has a bridge closure he wants to sell you! Unless they are referring to the mafia version of “protection”, this is obviously untrue. As anyone who has been through the conventional auto dealer purchase process knows, consumer protection is pretty much the furthest thing from the typical car dealer’s mind.