A BYPASS THAT DOESN’T NEED A SURGEON!

(Business Insider, Reuters, Y Charts, Frazer Chronicle)

 

You gotta give it to those Republicans, they really know how to protect…..business, I was under the impression that politicians were in the game to make decisions that helped the general population, (how silly of me). North Carolina could ban the sale of one of those little efficiency cars. That’s right, you read it here first, North Carolina…..a completely progressive state might actually dip into the private sector and dictate whether consumers could buy an automobile inside the Tar Heel state borders.

 

The proposed rule, unanimously approved by the state’s Senate Commerce Committee would make it illegal for any automobile to bypass dealerships and sell cars directly to consumers. The car, the Tesla is the only American automaker whose business model is based on selling its cars directly to the consumer.

 

The bill is sponsored by Republican Senator Tom Apodaco and supported by the North Carolina Automobiles Dealers Association…..duh…..how shocking. The bill claims that for an economy car to be sold through the mail, over the phone, or across the internet. The problem as the North Carolina Senate Commerce Committee sees it, as Senator Tom Apodaco sees it, and as the North Carolina Automobile Dealers Association differently sees it, would be unfair competition!

 

I have a news flash for all of these ignorant down home boys in the automobile sales business in North Carolina, your day is coming as more and more people get their information from the different informational websites that can be accessed by a simple touch of the old finger.

 

I used to sell cars and trucks; I know the scams that go hand in glove with the industry. Many, many sales people are unscrupulous and will do whatever is necessary to secure a sale. The dealership starts the ball rolling by changing the miles, altering information on the title, and filling the crankcase with all sorts of additives to get the car over the curb and into the street!

 

AN UNREPORTED WAR

The North Carolina proposed bill is just the latest salvo in a fight that has been going on for a long time, where battles are measured in lawsuits. New York State, Massachusetts, Illinois and Oregon are accusing Tesla Motors of violating state laws that protect car dealerships.

 

Tesla seems to be winning the war at the present time as the New York and Massachusetts suits have been thrown out, and a Minnesota bill to ban Tesla was defeated in March. Off the victories Tesla CEO Elon Musk traveled to Texas to lobby for a bill to allow the sale of his car to the general public, and bypass dealerships in the Lone Star State.

 

I know from personal experience that the auto sales business is highly competitive, but I also understand that each dealership, and each car maker in the United States use the good ole boy mentality with regards to their bottom line…..in other words, auto prices, at least for new cars are basically the same price for the same type of model.

 

I’m not sure how anybody could say that buying direct from the auto maker could be an unfair competition, issue. If the practice saves the consumer money…..I’m all for that. I’m not sure how or why auto dealer associations got what amounts to an unfair competition kind of situation anyways.

 

 

 

 

LET’S TAKE A LOOK AT UNFAIR COMPETITION

Unfair competition…..to me means that the Green Bay Packers schedule an exhibition game against the Sister Teresa’s retirement home; they win, the Sisters…..no way. I’m not too sure how an auto dealers association, any association in any state could win an unfair competition suit…..actually they haven’t…..yet.

 

Unfair competition in a sense means that the competition compete on an unequal terms, because favorable or disadvantageous conditions are applied to some competitors, but not to others. However all the state suits that have been filed site “unfair competition” as their prime dispute against Tesla, and Tesla treats all dealer associations the same in every state, they go directly to the consumer to sell their cars.

 

Granted unfair competition by Tesla’s practices can cause a gain in sales by the independent maker and seller of their car, but it isn’t directed at any one auto maker or seller, it’s a market wide attempt to sell the Tesla models to anybody.

 

There is another problem with bringing unfair competition lawsuits by dealer associations against Tesla, and it should be as plain as the nose on an auto dealers face…..the price for a Tesla…..hold on to your panty hose folks…..the asking price for one of these little economy cars with no MPG rating…..$100,000 bucks.

 

I’m glad to report that there are more inexpensive models that go as low as $71,000, but the down-side is the 15% down payment that your gonna need…..or a little over $10 grand. Again I am glad to report that a few states combine with the Federal Government to offer incentives to put consumers butts into one of these compacts which amount to almost as much as you’d need to pay down.   

 

However no matter the cost, it would take several oil wells to come in and a couple of book contracts would be necessary before I could entertain any notion of purchasing one of these electrical hogs. No gas, all electric engine, impressive acceleration, Direct-drive transmission, Bluetooth, iPod input, Traction Control, but Navigation System (optional), “come on” between $70 and $100 thousand…..Tesla, you can do better than optional!

 

Pricey, you betcha, navigation system optional, surely you jest, if I spend $70 or $80, or $100 thousand dollars on a ride, I get every bell and whistle…..and maybe a few that aren’t offered. An electric car that can travel approximately 244 miles before you need to plug it into your local electrical outlet, and can get down the road and hit 60 miles per hour in less the 5 seconds…..I’m there…..just as soon as the oil/natural gas, and book contract comes in.

 

VERY SLOW TO GRASP NEW TECHNOLOGY

American ingenuity reigned supreme, back a hundred years and more, and would have devised and embraced the electric car of today, but American industry has gotten caught up with the status quo, and lobbying to squish the competition or new ideas.

 

It happened in the steel making industry, it happened in the coal mining industry, and of course it happened in the auto making industry. It takes people of vision, and people with a devil may care attitude for forge ahead with a new idea.

 

 

Without much exception the United States has forged ahead with new ideas, been adventurous and held a supreme feeling of self confidence in the innovative field of industry and manufacturing…..I know because I’ve seen what has transpired from these ingredients.

 

America’s auto makers as well as the selling dealers should embrace the Tesla economy car, and work with Elon Musk to forge partnerships to market these little cars, the car should enhance the new era of automobile travel, because unless somebody, somewhere devises an emission free type of car, we will run out of fossil fuel, or pollute the planet…..whichever comes first, it almost doesn’t matter.

 

Without the incentive to replace most of our gas guzzling, smog belching mode of transportation, it will…..in the end, be curtains for all of us. Global warming, loss of fossil fuel, huh, they will be the least of our problems, when we can’t get from point A to point B, when we lose our mobility that will be the real problem…..now I think that point we can all agree on.

 

HAVE A NICE DAY!