E46Fanatics - View Single Post - Tesla Sued by NY and MA car dealers over franchise laws
View Single Post
Old 11-12-2012, 03:06 PM   #1
E46Fanatics Owner
tim330i's Avatar
Join Date: Dec 1969
Location: SF
Posts: 11,971
My Ride: 03 Ti Silver M3
Tesla Sued by NY and MA car dealers over franchise laws

Looks like the local dealerships in Massachusetts and New York have their defenses up against upstart electric car company Tesla. The logic they're using on why it should be illegal to sell cars directly to the consumer is a little fuzzy to me, can anyone figure out why it would be a problem?

Robert O'Koniewski, the executive vice president of the Massachusetts State Automobile Dealers Association, is suing Tesla for opening a store in a local mall.

In Massachusetts, franchise law 93B prohibits a manufacturer from owning a dealership, O'Koniewski says. An auto dealer association in New York is also suing Tesla.

Typically, car manufacturers build the cars, then ship them out to local car dealers, which have to meet the various manufacturers' standards.

Manny Quinones is a sales manager at one of those dealers, Manhattan Motorcars in New York.

"We're multibrand, so we have brand-specific showrooms," he says.

Each brand represents another manufacturer that can require expensive equipment and training. Not having to meet those various needs, O'Koniewski says, gives Tesla an unfair advantage.

Way to block innovations MA and NY!
tim330i is offline   Reply With Quote