FTC to Host Public Workshop Examining the U.S. Auto Distribution System Workshop Will Explore Competition, State Regulations, and Emerging Trends in the Industry, Project No. P131202
To me it boils down to what the NADA doesn't like to admit. That the factory direct sales model is a direct threat to their business model to which I'm forced to add: Why should that be the manufacturers problem? The way I see it the manufacturers created this business. The dealers came along afterwards and decided that retail sales of automobiles would make for a very lucrative business but only if they had full control. This is insane that in our (supposed) Free Market economy, retailers could dictate to manufacturers how they can sell their product. We all know how and why this situation came to be, and how it continues to survive, so I'll avoid discussing politics and crony capitalism. To suggest that this is in any way legitimate is to make liars and hypocrites of everyone who says our form of Capitalism is a true free market economy. Like it or not, dealerships need to learn to survive without protectionist legislation, just like most other businesses in this country. Why should a legitimate company like Tesla (or any manufacturer wishing to sell its products itself), need to be punished for simply trying to sell its product in the best way it sees fit? Lets face it, perhaps the biggest reason the NADA and their dealerships are grumbling is because Tesla has found a way to avoid the NADA's franchise laws and the subsequent extortion they allow.