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What possible reason, from anyone's perspective, is there to say it's not OK for Tesla to sell their own products to people? Is this literally 100% because the
by SCdF 11y ago
What possible reason, from anyone's perspective, is there to say it's not OK for Tesla to sell their own products to people?
Is this literally 100% because the US is so corrupt that car dealers are just making laws that make them money? Or is there a sliver of an argument here that has merit?
I neither live in the US nor own a car, so the idea that Toyota can't tell you a Toyota or whatever is bewildering.
- MichaelApproved 11y agoIt's part of an old set of laws that were put in place to protect dealers. It kept a manufacturer from selling a market to a dealership, allowing that dealership to expand the market in the area for them and then moving into that market on their own. Meaning, Ford sells a dealership the Los Angeles region. The dealer spends money advertising how great Fords are in the local market. Sales go up. Ford decides to open its own dealership in Los Angeles and compete directly with that dealership. The law was useful a long time ago. However, it shouldn't apply to manufacturers who don't have dealerships that need protection. Entrenched businesses are using that law to keep out competition.
- SCdF 11y agoThanks for the explanation, that makes sense.
- stickfigure 11y agoIt is because this (small) aspect of the US economy is so corrupt. There are a handful of other sectors characterized by this kind of economic rent, but they are generally uncommon here compared to most economies of the world. So yes, it is a form of corruption, but it is not fair to characterize the entire US economy this way.