While the likes of General Motors continue to push for car dealerships across all US states as the only means of selling vehicles to the public, Tesla is thinking otherwise. In a very important victory, Tesla this week won support from the Indiana authorities who kicked into touch a move to outlaw Tesla’s direct sales initiative. So, are the big car companies running scared of Tesla?
Not just Tesla but any car company. The auto companies have untold dollars invested in dealership facilities. Support for these physical plants is enormous. Car companies had legislation enacted eons ago, in most states, to prevent “catalog sales” of vehicles from non aligned companies.
Sounds monopolistic doesn’t it. BUT it protects the pubic from being sold an expensive product that has a good possibility of not being supported in the future. These dealerships provide employment for thousands of well paid employees and ensure that our cars and trucks are serviced and repaired in short amounts of time.
On one hand it stifles competition, on the other, it helps protect the public.from fly by night operators.
What are your feelings on this subject? Good, Bad, Indifferent?
What say you?