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
Automobile dealerships in the U.S. have evolved to the point where many are very large businesses with political clout gained through extensive political lobbying and other activities. The is especially true of our local congressman who happens to own more than one dealership. Companies like Tesla Motors, Inc. have initiated a sales model that has the customer buy or lease directly from the manufacturer. They also provide service. While the company is in its infancy, most of the early customers have found this business model to be to their liking. Dealerships have successfully influenced legislatures in several states to outlaw the Tesla sales model that many customers prefer, limiting Tesla's ability to establish a local presence in those states. I feel this is restraint of trade that limits customer choice and is not in the customer's best interests.