Friday, March 14, 2014


Photo: Shal Farley


NJ Bans Direct Sales


Governor Chris Christie’s administration blocked Tesla Motors, the electric-car maker that doesn’t have franchised retail dealers, from direct auto sales in a move the company said could shutter its only two stores in New Jersey.  Bloomberg

The state’s motor vehicle commission voted Tuesday to ban automakers from selling cars directly to consumers, instead requiring them to work through franchised dealers, a rule supported by the New Jersey Coalition of Automotive Retailers (NJCAR). Fox

The change will force Tesla to close its existing sales operations in the state and layoff 27 employees, according to documents posted to the commission's website.  CNN

Tesla will stop selling cars in New Jersey on April 1.  Like many other dealer groups across the country, New Jersey dealers did not want Tesla to be able to sell cars directly to customers.  Two other states that have banned Tesla from direct sales are Arizona and Texas. Forbes

You're too stupid and must be protected by the State


Let's cut the crap here.  Banning direct sales has nothing to do with protecting the consumer and everything to do with protecting a contributing special interest group, the NJCAR in this case.  The State has no legitimate reason to tell me who I must buy from or how I must buy, as if I'm competent enough to afford a $70,000 dollar automobile yet am somehow unable to rationally decide for myself if I am willing to buy sans dealership middleman.  This is Crony Crapitalism at its worst and it's why there is no way in hell I will ever vote for Chris Christie.  One wonders if it was Ford and not niche automaker Tesla, that Christie's administration would be singing a different tune.

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