Tesla and NJ Auto Dealers Still in a Fierce Battle
Тhe verbal battle between Tesla Motors and New Jersey auto dealers has never ceased ever since New Jersey passed a bill that prevents Tesla from selling vehicles directly from its stores.
Elon Musk, CEO of Tesla Motors, thinks this policy is hurting EV sales. Furthermore, he says that auto dealers feel threatened that the sale of Теsla vehicles means less business for them, due to less problems that require a dealership visit, but rather a software update.
Auto dealers, however, do not agree. Peter Welch, president of the National Automobile Dealers Association (NADA) believes selling through dealership promotes competition, and therefore, drives prices lower. Moreover, auto dealers provide an extra layer of security, because: “automakers have an economic disincentive to issue recalls or incur warranty expenses.” Dealerships, on the other hand, have financial incentives to do “safety and warranty work”, which ultimately is for the good of the consumer.
The debate is heated, because Tesla is currently facing similar bans in Ohio and New York.
Read the full story at Associations Now.
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