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This is just an of desperation. Plain and simple. I don't understand what is so unfair about it. Tesla is the one going into these states as a newcomer, they h

This is just an of desperation. Plain and simple. I don't understand what is so unfair about it. Tesla is the one going into these states as a newcomer, they have an expensive product, they have to pay rent and hire workers. If these franchises want to complain, complain to the manufacturer they are representing. The thing is these franchises don't offer enough value-added services needed justify the extra costs (or their existence). That is why they are afraid. They know this (this is why they have such a bad reputation from customers). Also, cars are increasingly becoming more complicated. These hybrids being built now are so complicated that they require automated tests to be done to detect issues. As technology progresses, these franchises will increasingly rely on the manufacturer for assistance in solving problems that are not simple. I think the real advantage to Tesla is that the feedback loop is faster. They can listen to customers and improve their products faster. Improving the products can further reduce the costs and increase it's competitiveness.

gamblor956 13y ago
Car dealers exist because they isolate the risk of local car sales from the manufacturer. This includes not just inventory management but credit risk management and other business considerations. Business-wise, this is a very good thing. Car manufacturers are in the business of making cars, not selling them. (This is an important, if subtle, distinction.) From a customer standpoint, they also provide a guaranteed location at which the car can be serviced. If you buy a common car like a Ford or a Toyota, you'll have your choice of mechanics. If you buy an import or a Fiat, your only option locally may be the dealer you purchased the car from. As technology progresses, these franchises will increasingly rely on the manufacturer for assistance in solving problems that are not simple. Yes, but if any such problem is severe enough that only the manufacturer can deal with it, they've got a mandatory recall issue, and the manufacturer would be forced to handle the problem. Car dealers usually have the best-trained (and first trained) mechanics for any model of car, pursuant to franchise licensing agreements. real advantage to Tesla is that the feedback loop is faster. In the real world, fast iteration for physical products is not a good thing. You end up turning any particular iteration of the car into a commodity, which lowers demand because buyers will want to just wait for the next iteration.
- jamesaguilar 13y ago
  > Car dealers exist because If it were really the slam-dunk win you claim it is, Tesla would probably have used dealers too.
  - gameshot911 13y ago
    I thought he offered a very fair counterpoint to all the anti-dealer arguments presented so far.

gamblor956 13y ago

Car dealers exist because they isolate the risk of local car sales from the manufacturer. This includes not just inventory management but credit risk management and other business considerations. Business-wise, this is a very good thing. Car manufacturers are in the business of making cars, not selling them. (This is an important, if subtle, distinction.) From a customer standpoint, they also provide a guaranteed location at which the car can be serviced. If you buy a common car like a Ford or a Toyota, you'll have your choice of mechanics. If you buy an import or a Fiat, your only option locally may be the dealer you purchased the car from. As technology progresses, these franchises will increasingly rely on the manufacturer for assistance in solving problems that are not simple. Yes, but if any such problem is severe enough that only the manufacturer can deal with it, they've got a mandatory recall issue, and the manufacturer would be forced to handle the problem. Car dealers usually have the best-trained (and first trained) mechanics for any model of car, pursuant to franchise licensing agreements. real advantage to Tesla is that the feedback loop is faster. In the real world, fast iteration for physical products is not a good thing. You end up turning any particular iteration of the car into a commodity, which lowers demand because buyers will want to just wait for the next iteration.

jamesaguilar 13y ago
> Car dealers exist because If it were really the slam-dunk win you claim it is, Tesla would probably have used dealers too.
- gameshot911 13y ago
  I thought he offered a very fair counterpoint to all the anti-dealer arguments presented so far.