Monday, September 23, 2013

Oh The Irony

The California New Car Dealers Association is pushing the state to investigate Tesla's advertising practices. Believe it or not, the California car dealers are mad about, of all things, false advertising...oh the irony.

The dealers have reportedly sent a letter to the California Department of Motor Vehicles requesting an investigation into "egregious violations" of consumer protection laws, specifically, Tesla's practice of including external savings such as fuel costs, incentives and tax credits into the advertised price.

Do the California car dealers have a case against Tesla?  Probably.  However, their real underlying grip isn't about misleading advertising, a field that car dealers are notoriously expert in.

Tesla is a threat to the entire dealer model because they cut out the independent dealer and sell directly to consumers.  This shift in how cars are sold would be just as revolutionary as Tesla's electric powered cars as an independent dealer is legally protected.

Car dealers have already shown that they will fight tooth-and-nail to preserve the old way of doing things.  After all, it has been very good for them.     

But Tesla has broken that barrier and there might be no turning back. If I ran another car company, I'd prefer to help lead the next revolution rather than be upended by it.

As always, thank you for reading and sharing your feedback.

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