Tuesday, March 18, 2014

Car dealer associations across the country are lobbying hard to keep Tesla Motors from establishing dealerships. The answer as to why this is the case is one that we know all too well. Oil.

Courtesy of Wired:  

Car dealers fear Tesla. In states across the country, powerful car dealer associations have lobbied to ensure the electric car maker and its direct-sales model are kept out. This movement claimed another victory this week when New Jersey banned Tesla stores in the state. 

On the surface, the fear is hard to fathom. In New Jersey, for instance, sales of Tesla’s $70,000 Model S reportedly number in the hundreds. But if you dig a little deeper, it becomes obvious why dealers are worried. They don’t just fear Tesla’s cars. They fear Tesla’s plan to create a world where you never have to bring your car into the shop again. 

The first and most striking way Tesla kills the dealer service department cash cow is downloads. As part of its sales pitch, Tesla says you should think of its Model S sedan as “an app on four wheels.” That may sound like vacuous Silicon Valley marketing copy, but the company isn’t just being metaphorical. Software is at the heart of what keeps Teslas running. These internet-connected cars are designed to self-diagnose their problems. The vehicles can also download software fixes or updates — even new features — much like an iPhone when Apple puts out a new version of iOS. When fixes happen over the air, there’s no need for a shop in the first place. 

The ability to repair a car via software is especially important when the vehicle itself consists of so much new technology that traditional mechanics don’t know how to fix. The flip side is that without an internal combustion engine, there’s not as much to fix. I’ve written before that a Tesla without its outer shell looks like a cell phone on wheels. It’s basically just a big battery. That means no spark plugs, no air filters, no fuel pumps, no timing belts. In short, Teslas don’t have any of the parts that force you to take your car in for “regularly scheduled maintenance” — services that can cost dearly at the dealer. But it’s hard to charge for an oil change when there’s no oil to be changed.

As you can imagine a vehicle that requires no gasoline and no oil changes, would drive the oil companies into  a near panic.

And so it has. Enough so that it has a long history of working against the electric car industry.

I think there is little doubt that this is the wave of the future, and speaking just for myself, the idea of a car that can self diagnose and solve problems via the internet is incredibly attractive.

However, and I almost hate to bring this up, before this country puts all of its eggs in the electric car basket, we need to completely overhaul our electrical grid, beef up security, and move to more solar power to meet our energy needs.

Right now we are incredible vulnerable to sabotage, and before we dispense with fossil fuel powered cars altogether that must be addressed.

However in the meantime I am looking forward to helping my daughter purchase a car that will NOT leak oil all over my driveway, and one which I can plug into the wall to charge rather than to stand in the freezing cold at a gas station spending money to support oil producing countries in the Middle East.

15 comments:

  1. Anonymous3:00 AM

    We are planning on getting one of these in the future once they are AWD and more a wagon. We can easily set up s solar panel rig on our barn garage and charge the car off grid. Free travel! Imagine that!

    ReplyDelete
    Replies
    1. Look into the Toyota RAV 4 EV. It's awesome.

      Delete
  2. Anonymous3:03 AM

    This is sad. Instead of embracing new technology, these auto dealers would rather hide their heads in the sand and pretend that God wants them to use up all the oil on the planet and then Sarah will tell them where to drill more. Meanwhile, oil is dirty,

    hazardous to our health, and the oil industry is using 'eminent domain' to take over farmlands for their fracking and pipelines.
    It is obvious that this industry wants nothing to do with the future, and, like the GOP, wants us entrenched in things that no longer work except in lining their pockets. I'm sure Sarah will have an uneducated rant on this as soon as she pays the current writers for their dog whistles.

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    1. Anonymous8:39 AM

      The dealers are not hiding their heads in the sand, they are against the model of buying a car and that is the end of the transaction - no oil changes, no scheduled maintenance, no $$$ once the car is sold. This is huge to the dealership! Plus, the oil oligarchy does not want to lose its power over our economy.

      I believe we will get there, but it may not be in my lifetime. Too many dollars lost if America gets off the oil bandwagon and goes green, thus providing a healthier planet for our kids, grandkids, and future generations.

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  3. A. J. Billings3:05 AM

    The thing that is *really* hypocritical, is that these red states that have banned direct sales, are the same group of right wing folks who scream "free enterprise" and "let businesses do what they need to" all the time.

    Can you imagine them telling Apple or Dell , "you guys can't have a store for direct sales, and you can't sell over the internet"

    I'm sure there are at least some systems on the Tesla cars like tires, brakes, shocks, ball joints, etc that will need servicing in a shop like any other car.

    But you raise a good point about the oil companies , I had not thought of that angle.

    Excellent article.

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  4. Leland3:38 AM

    Question: Aside from the obvious fact that most of the politicians who do the banning are bought and paid for, what excuse are they CLAIMING to actually BAN the dealerships?

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  5. Cracklin Charlie6:01 AM

    Car dealers have much to fear from Tesla.

    That is a SWEET ride!

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    1. I've driven a Tesla Roadster. It was awesome. But not for me. I am much more interested in the Model S but can't afford it. They're working on a smaller car now.

      Currently I'd choose a Toyota Rav 4 EV if I had to switch to pure electric.

      I own a Prius.

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  6. Anonymous8:30 AM

    We have Tesla "show rooms" here in SoCal, and although I don't have $70K to drop on a car still dropped in to see what was up. First off, there is an annual maintenance check to be performed on the vehicles, so the "maintenance-free" aspect is a non-starter for dealerships. It may not be as often as they would like, but it still exists.

    Other than the cars themselves being absolutely beautiful my other questions were readily answered by the staff. In particular, how are the software updates handled? (Ans: it links to your home's wi-fi)

    In addition to the high number of charging stations available (with primo parking, btw), a group of entrepreneurs is already working on a business plan for high-speed charging stations to use for longer road trips. Among the first will be along I-15 for folks who prefer to drive to Vegas.

    I'm really looking forward to seeing the next couple of models, particularly the smaller version of the current sedan which is expected to be in the same price range as an Audi.

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  7. I'm the auto business (sales) and reason for the opposition to the Tesla model is not oil, but the franchise system. Dealers invest millions into their businesses, at the insistence of the factories for new showrooms, service depts, etc. What the owners fear the most is the major auto companies adopting the Tesla model and putting them out of business.

    Any auto company with half a brain knows that electric, hybrid and alternative fuel cars are the future and will develop them. I work for BMW and they have invested billions in the new i3 model.

    Dealers are just trying to protect their business.

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    Replies
    1. Then they should be insisting on dealerships, not denying them.

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    2. Anonymous11:26 AM

      You only prove the point that competition is not actually at the heart of the so-called "free enterprise system". The government regulates who has access to markets. That has been the case since our country's inception.

      Delete
  8. It still does need some periodic servicing.

    But you'd think the dealerships would demand that Tesla sell through dealerships. Because if you buy a Tesla direct from the manufacturer, that opens the door for Toyota to sell directly to the customer, thus cutting out all Toyota dealerships.

    You don't have to take a car to the dealer for servicing. So that opens the door for independent but Toyota certified service departments to open up having no link to any dealership.

    They better watch out what they wish for. This isn't going to stop progress.

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  9. We could have had cars like Tesla is making a long time ago, but their plans were sabotaged. We could have had rapid transit all over the country, but those plans were sabotaged. If we had train systems in urban and suburban areas at least many would choose not to have a car. That would save resources and promote walking and bicycling. Instead of making those changes the corporations are using more dangerous and toxic methods to get at what fossil fuels are left.

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  10. Anita Winecooler5:34 PM

    I can't stand this bullshit. The company makes a product that has few, if any, negatives, yet the dealers are afraid of the competition and the states are regulating people's rights to bear electric cars. Tesla is a win win for drivers, rebuilding the grid and upping security will stimulate the economy and create jobs, other car companies can compete FAIRLY and the prices would come down with the added competition.
    We saw one at the Car Show and it's an amazing piece of technology, expensive as hell, but amazing beyond words.
    About eight years ago, our company came up with this brilliant idea. Lets buy a fleet of flex fuel chevrolets! They're the next best thing to the wheel! At the time, the state of pennsylvania had exactly two alternative fuel pumps available to the public. Meaning one would have to fill up on gasoline three times to get to one of the other pumps. Our company saved exactly nothing by making the switch. And why use a food source for fuel when people are starving?

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