State Sen. John Rafferty (R-44) introduced SB 1409, June 9, that would change Pennsylvania’s Board of Vehicles Act of 1983 so that a “manufacturer or distributor may own, operate or control a new vehicle dealership trading solely in electric vehicles”.
It contains a whole lot of other conditions so that it basically solely applies to Tesla Motors, the California maker of electric cars that use a franchise-free, web-based, direct sale model.
Existing law prohibits auto makers from selling directly to customers hence the need for franchises to act as middle-men.
Tesla certainly should be allowed to sell directly to customers.
Of course, so should Ford, Toyota, BMW etc.
If the law should be repealed entirely so that all auto-makers may sell directly to consumers via the internet what would happen to the poor franchise owners?
Weathers Dodge in Middletown, Delaware County, was closed in 2010 after 78 years as part of Obama’s plan for reorganizing Chrysler. It became Weathers Motors where it sells used cars and provides superb service.
The former franchises that offer good deals on used cars and provide superb service will survive. The others? Would you shed tears for them?
Tesla Bill Angers Other Auto Makers
It’s just like real estate…many people thought just putting houses on the internet would virtually destroy the real estate sales companies but it didn’t. Why? Because the fly by night, say anything, promise anything Realtors went the way of the dodo bird. Same with car sales…I’ve dealt with many car dealers over the years and have come to the conclusion that I will continue to deal with the dealership I’ve been using for 5 years now regardless (irregardless is not a word, dummy) of whether I could get a car “cheaper” or not. Why??? Because of the service and follow up this company provides. (if you want to know I’ll just give you a hint…they are in Newtown Square PA and sell primarily new and used Subarus.)
Very good points, John.
The more the competition, the more the cream will rise.