I was listening on somewhat similar issue in NPR as well. Most of the states have these type of laws on car dealership. Once upon a time long long ago these laws were needed to protect dealerships when Cars were hot commodity and Car manufacturers dictated really harsh terms and conditions on dealers. Now a days, these type of laws and rules are just archaic laws which just gives dealer association huge amount of leeway in close association with local politicians.
I think it is time to revisit such laws and change them to reflect new level playing field for both Manufacturers and Dealers..
Virginia says no to Tesla dealership
McLEAN, Va. (AP) — Virginia officials have rejected a request from Palo Alto-based electric carmaker Tesla Motors to operate its own dealership at a Tysons Corner mall.
State law requires manufacturers to sell cars through a dealer, unless the manufacturer can show that no dealer is available.
Tesla sought an exception, saying its unique model for selling cars would not be attractive to a traditional dealer. The showroom would be more of a “design studio” where customers would use touchscreens to customize options. No inventory would be on hand, and customers would wait up to six months to receive the vehicle. There would not be a service department.
The Virginia Automobile Dealers Association objected to Tesla’s request.
In a ruling Monday, Department of Motor Vehicles Commissioner Richard Holcomb said he was unable to say definitively that no dealer could meet Tesla’s needs.
Holcomb ruled against Tesla even though a DMV hearing officer had twice recommended that Virginia grant the company’s request .
Tesla has the opportunity to appeal Holcomb’s ruling in state court or resubmit its request with evidence that no dealer is available to operate the franchise in a manner that would benefit the public interest.
Tesla is waging similar campaigns in other states.
I think it is time to revisit such laws and change them to reflect new level playing field for both Manufacturers and Dealers..
Virginia says no to Tesla dealership
McLEAN, Va. (AP) — Virginia officials have rejected a request from Palo Alto-based electric carmaker Tesla Motors to operate its own dealership at a Tysons Corner mall.
State law requires manufacturers to sell cars through a dealer, unless the manufacturer can show that no dealer is available.
Tesla sought an exception, saying its unique model for selling cars would not be attractive to a traditional dealer. The showroom would be more of a “design studio” where customers would use touchscreens to customize options. No inventory would be on hand, and customers would wait up to six months to receive the vehicle. There would not be a service department.
The Virginia Automobile Dealers Association objected to Tesla’s request.
In a ruling Monday, Department of Motor Vehicles Commissioner Richard Holcomb said he was unable to say definitively that no dealer could meet Tesla’s needs.
Holcomb ruled against Tesla even though a DMV hearing officer had twice recommended that Virginia grant the company’s request .
Tesla has the opportunity to appeal Holcomb’s ruling in state court or resubmit its request with evidence that no dealer is available to operate the franchise in a manner that would benefit the public interest.
Tesla is waging similar campaigns in other states.
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