Tag Archives: government

Chris Christie sells out to the car dealers and hurts consumers, blocks Tesla’s direct sales model

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Why in the world can’t I go to Toyota.com, pick out a new car, customize it, do the financing if need be, and then have it delivered to me in a couple of days? It would save me time, money, and hassle.

The answer: Car dealerships.

They don’t want you or me buying directly from the company even though the cost to me and you would likely be considerably lower. Dealerships make their money on the markup and they are not interested in just closing up shop even if their entire business model is completely outdated. So the dealers have gone to the state governments in an effort to ban direct sales. Sadly for us they have been successful in some places.

Take for instance the regulations New Jersey just approved.

(From The Wall Street Journal)

The New Jersey Motor Vehicle Commission approved a rule change Tuesday that would require auto retailers to have a franchise agreement with an auto manufacturer to be granted a license to sell cars in the state.

Tesla owns its stores, selling directly to consumers, something that dealer groups in New Jersey and other states have fought, primarily through legislation.

A Tesla executive said the move amounts to a “death penalty” to its auto retail outlets in New Jersey and could encourage regulators in other states to follow suit.

The rule, which deals with the licensing of auto dealers, would require that a person have a franchise agreement with an auto manufacturer to be granted a license.

Tesla’s vice president of business development, Diarmuid O’Connell, said during a conference call Tuesday that New Jersey Gov. Chris Christie’s administration “abrogated” an agreement to hold off action on the proposal by the state’s Motor Vehicle Commission.

Click here for the article.

The Establishment Strikes Back (at social media)

For every revolution there is an effort at a counter revolution. We see examples of authorities pushing back against the digital revolution nearly everywhere.

 

From liberal San Francisco, where authorities recently turned off cell phone service to BART (transit rail) stations in an effort to thwart the coordinated efforts of protestors, to Conservative UK Prime Minister Cameron calling for increased restrictions on social media in the wake of last week’s riots, the gate keepers are doing their best to keep the gates locked.

In places such as Egypt where the first rays of sunlight have begun to shine in, the military is flexing it’s muscles again. Blogger, Asmaa Mahfuz, a leader in the spring revolts was recently detained because of a perceived insult to the Army that was posted on her Twitter account. She has been released on bail but the message has been sent.

Around the world the powers that be are growing increasingly worried that their positions of power are under threat from a digitally empowered group of (mostly) young people. The old rules are falling by the wayside and the establishment is unhappy about it. The peasants it seems now have too much power.

What is even more annoying for the establishment is that the peasants seem to be better at leveraging information for their causes than the establishment is. Propaganda is to be handed down from on high, information is not supposed to percolate, it is to be blessed. Too much information is dangerous we are told.

It is- for them.

We will continue to see more and more push back from authorities in the days, weeks, months, and years to come. The Church despised the printing press. It should not surprise us that today’s power brokers hold a similar contempt for the digital revolution.