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Excuse my ignorance, but how I understand is that ICE can't be sold directly to the customers, so that's why dealerships exists (?), so my question is, are EV n

Excuse my ignorance, but how I understand is that ICE can't be sold directly to the customers, so that's why dealerships exists (?), so my question is, are EV not regulated or treated differently than ICE?

dx034 4y ago
I believe the dealership network exists for historical reasons and car companies can't get rid of them for their existing models. Now's the time to change that using EVs as a reason. But it's something many car manufacturers would've liked to start doing 5-10 years ago.
rascul 4y ago
EV are regulated also. See for example Tesla's trouble selling directly to customers in some states. https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes
jkilpatr 4y ago
EV are explicitly treated differently. Telsa insisted on it's direct sales model and it was more politically expedient for regulators in many states to carve out an exception to the dealership requirement only for car companies that sell EV's exclusively (only tesla at the time). While I suppose this didn't seem like a huge threat to the car dealership lobby in each state at the time it's clearly come back to bite them and is the main reason Fords Electric vehicle production and distribution is a different 'car company' on paper, so that they can take advantage of legislation designed for tesla.
adamqureshi 4y ago
Tesla also points out that its prices are fixed, and its salespeople are paid primarily on salary, not commission. “Customers will never be rushed into a purchase, haggle over the price of the car, wonder if they could get a better deal across town, or puzzle over confusing add-on products, like GAP insurance or rust-proofing.” Back in the 1930s, the car companies established this system so that they could worry about making cars, and the franchises could worry about selling and repairing them. Early on, though, the franchisees lobbied their state governments for protection. They feared, among other things, that the giant car companies could open up their own stores across the street, cut prices, and crush the franchise like a bug. To prevent that kind of abuse, all 50 states passed “dealer franchise laws.” They protected the dealerships in various ways—including barring any car maker from selling directly to consumers. Those laws didn’t foresee the modern era. What they meant, of course, is that “no car company that has franchises can sell directly to consumers.” They weren’t even thinking about companies that don’t have franchises, because there weren’t any at the time. Over the years, Tesla’s legal team has gone from one state legislature to another, pointing out how that rule has become outdated, and suggesting that it get changed. In some cases, they succeeded. In others, though, Tesla is running into a tougher obstacle.

dx034 4y ago

I believe the dealership network exists for historical reasons and car companies can't get rid of them for their existing models. Now's the time to change that using EVs as a reason. But it's something many car manufacturers would've liked to start doing 5-10 years ago.

rascul 4y ago

EV are regulated also. See for example Tesla's trouble selling directly to customers in some states. https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes https://en.wikipedia.org/wiki/Tesla_US_dealership_disputes

jkilpatr 4y ago

EV are explicitly treated differently. Telsa insisted on it's direct sales model and it was more politically expedient for regulators in many states to carve out an exception to the dealership requirement only for car companies that sell EV's exclusively (only tesla at the time). While I suppose this didn't seem like a huge threat to the car dealership lobby in each state at the time it's clearly come back to bite them and is the main reason Fords Electric vehicle production and distribution is a different 'car company' on paper, so that they can take advantage of legislation designed for tesla.

adamqureshi 4y ago

Tesla also points out that its prices are fixed, and its salespeople are paid primarily on salary, not commission. “Customers will never be rushed into a purchase, haggle over the price of the car, wonder if they could get a better deal across town, or puzzle over confusing add-on products, like GAP insurance or rust-proofing.” Back in the 1930s, the car companies established this system so that they could worry about making cars, and the franchises could worry about selling and repairing them. Early on, though, the franchisees lobbied their state governments for protection. They feared, among other things, that the giant car companies could open up their own stores across the street, cut prices, and crush the franchise like a bug. To prevent that kind of abuse, all 50 states passed “dealer franchise laws.” They protected the dealerships in various ways—including barring any car maker from selling directly to consumers. Those laws didn’t foresee the modern era. What they meant, of course, is that “no car company that has franchises can sell directly to consumers.” They weren’t even thinking about companies that don’t have franchises, because there weren’t any at the time. Over the years, Tesla’s legal team has gone from one state legislature to another, pointing out how that rule has become outdated, and suggesting that it get changed. In some cases, they succeeded. In others, though, Tesla is running into a tougher obstacle.