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
The Automotive Dealers Association in the State of New Mexico has prevented Tesla Motors to own and operate a Sales, Repair and Service Office in New Mexico, arguing that this would be a unlawful operation under the Franchising Act. Although this is a doubtful interpretation of the law, they nevertheless have been successful. Federal regulation is required that would clearly establish that it is lawful for a car manufacturer to sell, service and repair their own brand of cars in a state where there has not been established a franchised dealership for that brand of car, in casu Tesla Model S and Tesla Model X. Current owners of Tesla cars in New Mexico are severely jeopardized by the current situation where for service or repair they have to go to neighboring states, Denver, CO (400 miles) or Scottsdale, AZ, (475 miles). It also constitutes unfair protection from competition from Tesla as the company is constrained in its marketing and selling efforts for this 100% USA manufactured, revolutionary, 0 pollutant emission vehicle.