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PostMay 13, 2014#26

This is from my anecdotal experience from when I worked for an agency that had GM as a client.
Someone may know more about the details but this is the gist:

To maintain your status as a (i.e.) Chevy dealer, the dealership is required to purchase a guaranteed amount of vehicles from GM every month. So GM sales and production are based on guaranteed dealer purchases. It was then up to the dealer to sell those cars. Thus "Inventory Liquidation Sales," "Overstock Blowout Days," "All Vehicles Must Go Sell-a-Thons" and so on because new cars coming on the lot regardless. I believe that's why when there was the government bailout, GM was forced to close so many dealerships across the country because their model created an artificially-inflated demand (not based on consumer demand.)

Not sure if this applies to non-GM dealerships, but that's a really, really, really delusional and messed-up model.
And just because it's been that way forever, doesn't mean it should stay that way forever.

I applaud Tesla for changing the selling landscape.

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PostMay 14, 2014#27

This debate is taking place on a national level. WSJ is all over it. Very interesting conversation.

What is the price of a Tesla?

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PostMay 14, 2014#28

~$70k +-10k

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PostMay 14, 2014#29

Another thought about supporting rich Elon Musk in his Tesla pursuit...

At least the guy is an innovator. How many years ago could we have had a practical fleet of electric cars of the traditional automotive powers (and the government) hadn't been skewed by big business interests (both their own and big oil) to maintain the status quo?

That status quo provided a known system and a lot of jobs, so was it a good thing they kept it in place so long? Absolutely not.

I very much support Musk's push towards innovation both in technology and business model.

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PostMay 14, 2014#30

Teslas are cool cars, and if the business model supports adult wages in our town, then awesome. If not, then they should get lost. It really is that simple. If Glassdoor's $12 to $13 wage estimates are accurate, that's only a dollar or two above the $10 or $11 an hour that's equivalent to the '60s min wage. Think about that - you pay people just a shade above minimum wage for selling a high tech $70k luxury ride? Really? That is a joke. Does anyone know what the people in the Tesla stores actually make?

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PostMay 14, 2014#31

I don't get it. How could Tesla succeed with unhappy customers and not serving their long term service needs?

Springfield News Leader - Our Voice: Dealer system serves public
Furthermore, consumers are well served by a system of local dealerships, providing them easy access to those business owners -- who have a vested interest in seeing happy customers driving off the lot and returning to make future purchases. Also, local dealers are better able to handle long-term service needs, particularly those needed to meet the specifications of manufacturers.
http://www.news-leader.com/story/opinio ... c/2138496/

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PostMay 14, 2014#32

^ Exactly.

I get so tired of over legislation. If Tesla isn't meeting customers needs, then they will be forced to adapt or fold. But if they can survive with a new model, they should have every right to do it.

PostMay 14, 2014#33

onecity wrote:Teslas are cool cars, and if the business model supports adult wages in our town, then awesome. If not, then they should get lost. It really is that simple. If Glassdoor's $12 to $13 wage estimates are accurate, that's only a dollar or two above the $10 or $11 an hour that's equivalent to the '60s min wage. Think about that - you pay people just a shade above minimum wage for selling a high tech $70k luxury ride? Really? That is a joke. Does anyone know what the people in the Tesla stores actually make?
Then don't buy one. You're free to support whatever businesses you like.

But within reason (meaning basic labor and safety regulations), businesses should be allowed to operate under a model of their choosing. If they're not satisfying enough people in doing so, they will fail. If they are, good on them.

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PostMay 14, 2014#34

^ Do you understand that policy-wise, our country has done virtually nothing to address the labor problems resulting from the very rapid technological change of the past fifteen years, nor the displacement of industry caused by our participation in free trade agreements with countries that have poor worker safety, compensation, and human rights. For those of us with jobs, the results of these changes have been lower prices, faster service, and a greater selection of goods. For middle and bottom earners, the results have been lower prices, faster service, greater selection, but paired with a lot fewer jobs, less skilled and lower paying jobs replacing the lost jobs, and significantly less economic stability. They call it "hollowing out." This is the result of more or less letting market forces do their thing - the most efficient market is the one in which goods are available at cost to the buyer and all the middlemen are either cut out or get virtually nothing for their efforts. That results in a sh*tty society of a few haves and a bunch of have-nots. If you want to kill innovation, see how a couple generations of near-poverty wages for the masses works out. Teslas are cool cars, but who cares if in fact Musk isn't paying his sales people enough to afford the product they sell? Henry Ford had the right idea, even if he was a terrible person otherwise: You have to pay people enough to ensure that there is a healthy market for goods and services. On the flip side, if you don't there has to be an excellent safety net in place. We do very little on either end. Is Tesla the villain? No, they are responding to the conditions of the market they exist in. Those conditions can be changed through legislative effort, though, for the enrichment of everyone. We don't need another thirty years of laissez faire trickle down bullsh*t to prove it doesn't work.

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PostMay 14, 2014#35

I agree there needs to be regulation on trade with countries who don't live up to our reasonable standards of labor. That has been a big miss by our government.

Creating forced middleman doesn't solve the problem.

I'm not saying there aren't issues, I'm saying let's address them at their core.

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PostMay 14, 2014#36

I don't get the debate? My understanding is that they did employ salesmen and mechanics. They were just corporate employees instead of franchise employees. Seems to me the law would have been protecting the Lou Fusz and Bommaritos of the world, not those employees. If thats the case (tell me if I'm wrong) why should such a law exist?

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PostMay 14, 2014#37

It's ironic that your quote is "smash all barriers" when you seem to want to keep some in place.

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PostMay 14, 2014#38

Philosophical consistency is overrated.

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PostMay 15, 2014#39

Only tangentially related, but awesome: The Oatmeal review the Tesla Model S

-RBB

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PostMay 16, 2014#40

I have been to the Tesla service center and their employees have come from Plaza Motors and other high-end dealers. They did so because of higher wages. Tesla's service is better than any service I have experienced at any of the other dealers in town. Their employees are well paid and happy. This dealership argument is the good old boy network trying to defend their over-inflated turf of skimming profits from the car manufacturers and over-charging the consumer. The auto-dealer owners are the wealthiest people in most rural counties. Who is getting serviced here?

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PostMay 16, 2014#41

^ where is it located?

edit: and what does it take to get a test drive?

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PostMay 16, 2014#42

I have been to the Tesla service center and their employees have come from Plaza Motors and other high-end dealers. They did so because of higher wages.
Excellent. Then glassdoor is wrong and Tesla pays people like adults. Good for them.

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PostMay 16, 2014#43

roger wyoming II wrote:^ where is it located?

edit: and what does it take to get a test drive?
It's the 2nd building on the left behind Bob's Seafood at 170 and Olive in China Town. It's a very small and non descript operation. You probably wouldn't notice without a Tesla or two parked out front. And there are no charging stations out front which I thought was wierd.

www.teslamotors.com/stlouis

call 314.371.5993 to learn more about Tesla ownership or to schedule a test drive

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PostMay 20, 2014#44

FTC staff comes out in favor of Tesla, direct vehicle sales
On the subject of Tesla Motors and its efforts to legally sell its electric vehicles directly to consumers without franchised dealerships, the FTC has taken aim at Missouri and New Jersey. The Commission hasn't made any nationwide decision on the subject quite yet, but in a May 16 statement it encouraged the two states to reconsider policies that would further prohibit automakers from selling directly to consumers. And the FTC didn't mince words, calling such laws an example of "protection that is likely harming both competition and consumers." This is much further than the FTC has ever gone before in support of direct vehicle sales.
^ Full story at the link.

-RBB

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PostMay 20, 2014#45

Missouri should not only allow them to sell the cars direct, we should then incentivize them to build their US battery plant here.

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