18 July 2014

USA Protecting Car Dealers

Tesla make electric cars. They don't want to put their cars into dealers that also sell fossil fuel powered cars because they realise the dealer may just talk the customer in to what they know best. New technology takes time to learn and understand, something most car dealers do poorly in.

So Tesla want to distribute the cars directly to the customer. In most states in the USA they cannot. What is unbelievably insulting is the argument used by the pro-dealer lobby. That is the customer gets consumer protection from dealers, and they are more committed to taking care of customers than Tesla will do with his direct selling way. So those who make bucket loads of money with the present protected car distribution model are only thinking of the consumer. Wow, I'm touched. Well, if the customer isn't looked after by Tesla, they will go belly up very quickly.

No, this is about protecting a system of doing things that makes some people very rich. It smacks of the eons of time music copyright has been granted. The entertainment industry has clout, and has used it to protect its business to the detriment of the public. The powerful vehicle dealer association is doing the same.

So is America the land of the free, the land of market enterprise? It may have been once but those who made it big now use their influence to control American business practice, to their advantage. They now stifle enterprise and decide how business is done. As they say, power corrupts, or in this case stifles progress.

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