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CNCDA goes after Tesla's manufacturing license in CA

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A

AmpedRealtor

Well-Known Member
Jun 30, 2013
6,453
4,228
Phoenix, AZ
#1
Attention fellow owners and enthusiasts,

It has come to my attention that the California New Car Dealers Association has filed a "false advertising" complaint against Tesla with the California DMV on September 16, 2013. The 20 page complaint, which can be viewed in PDF form here, includes screen shots from Tesla's "true cost of ownership" page, its financing calculator, as well as various order and configuration screens. CNCDA claims that Tesla is "savings packing" in its representations, which CNCDA claims violates state and federal law. CNCDA is not asking for Tesla to change its advertising, instead it is asking the DMV to revoke Tesla's dealer and manufacturing license!

I would encourage my fellow owners and prospective customers to write letters directly to the DMV and let them know about your positive experience with Tesla. CNCDA is doing everything it can to cause problems for Tesla in California - where it is legal for Tesla to sell directly to the consumer. Please send your letters directly to:

Ms. Jean Shiomoto,
Acting Director
Department of Motor Vehicles
2415 First Ave.
Sacramento, CA 95814

I am just fuming after reading the above complaint, and even more upset after reading this article which purports that Tesla is now in a "in a race" against GM - a company who made a vague announcement that it has the technology to compete with Tesla, but did not actually announce any product or time frame for a product. I've never read more drivel in my life.

It appears that our media "friends" are no longer interested in bashing EVs, they are now just interested in bashing Tesla. Please, we have to do something!
 
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#2
Revoke their licenses? It will never happen.

I am just fuming after reading the above complaint, and even more upset after reading this article which purports that Tesla is now in a "in a race" against GM - a company who made a vague announcement that it has the technology to compete with Tesla, but did not actually announce any product or time frame for a product. I've never read more drivel in my life.
Click to expand...

They're stealing Microsoft's old strategy. Announce a vaporware product, which is never delivered, just to kill sales in another company's product. (I personally know someone whose company they did that to.) However, I somehow doubt that it will be effective this time. If they had something anywhere near ready for production everyone would know about it.
 
#3
Doug_G said:
Revoke their licenses? It will never happen.

They're stealing Microsoft's old strategy. Announce a vaporware product, which is never delivered, just to kill sales in another company's product. (I personally know someone whose company they did that to.) However, I somehow doubt that it will be effective this time. If they had something anywhere near ready for production everyone would know about it.
Click to expand...
It's good that you're not biased in your potshots. :rolleyes:
 
#4
Well are we really surprised? I'm sure other Dealer Associations will pile on as well.

Personally I find the whole calculator thing a bit hokey, and wish they would just pull it as it is confusing.

HOWEVER--CNCDA is running scared and really are a bunch of cry babies. Great news stock is up another $12 today Mr. Morrison.

Boo hoo, someone figured out a way to cut out the middleman dealers. Thank goodness.

Only winners in this are the attorneys bringing in their big fees.

It was nice of Mr. Morrison to leave his number should anyone want to contact him (916) 441-2599.

cry-baby-e1363483875229100x67_zps50fdeace.jpg
 
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#5
brianman said:
It's good that you're not biased in your potshots. :rolleyes:
Click to expand...

I'm not sure whether you are saying that you don't believe GM is doing this or you don't believe Microsoft used to do this or both. Really, it's hard to say that GM is doing this, because at this point Tesla's Gen III is as much vaporware as a GM car (both companies are basically saying the same thing, that they see a path to producing the car in the years ahead). If GM was saying this right before Tesla was going to release a car, that would be another thing. Obviously I have more confidence in Tesla's statement, based solely on the fact that they delivered on the Model S.
 
#6
gregincal said:
I'm not sure whether you are saying that you don't believe GM is doing this or you don't believe Microsoft used to do this or both.
Click to expand...
I'm growing weary of the potshots at various brands that we seem to take so casually on the forum. Especially when they are clearly biased. Nothing more. I'm sure I've made my share of mistakes in this regard too, but I'm trying to fix it moving forward.

In this case it was Microsoft. I'm sure in handful of posts it will be Apple, or Google, or Amazon, or whatever.

The topic is CNADA (and car dealer associations) not "anyone you happen to have an axe to grind with going back for infinity". At least that was my understanding.
 
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#7
On a side note:

I have first-hand experience with Microsoft announcing vaporware products that never ship just to screw with the competition. My first startup company was competition, for example. In 1995, Microsoft announced Blackbird, which was supposed to be Microsoft's big entry into web content authoring at a time when HTML was still new to people. Microsoft hoped that people would skip HTML and use Blackbird to create fancy, slick websites instead. My company had a complete client/server solution that worked on Mac and Windows and Microsoft started calling up prospective clients who were interested in our stuff, and flying them out to Seattle to show them Blackbird. Then they were invited to this gigantic 3000-person conference in Long Beach (I attended, to see this Blackbird crap first-hand) and it was remarkable. There was Bill Gates trotting out celebrities like a young Shaquille O'Neeal to talk about how great Blackbird was and how it was going to transform the web. Our clients dropped us and went with Microsoft. But Blackbird never shipped, and Microsoft turned out to be clueless with the web. (Arguably still are.)
 
#9
Yes, we should try to lasso this back on topic. Enough about Microsoft (if you want the sordid story brianman drop me a PM, it's very similar to brianstorms').

I'll just reiterate that I don't think this is much of a threat. They can ask for their license all they want, but even if a judge agreed with them, he wouldn't arbitrarily put a company out of business for something like that. He'd just force them to retract it.
 
#10
Frustrating, but nothing bad is gonna happen in California.

a) Present (and past) Governor is a fan.
b) Tesla is probably one very few manufacturing success stories in recent years.
c) People all over North America are talking about this new car made in California.
d) 2,000 employees.
e) Californians love Model S; it's something like 25-35% of all sales are in that state.
f) Elon Musk lives there.
f) Tesla linked via Elon to SpaceX who also have 3,000 employees.

I could go on and on. Any politician who takes the CNADA shilling on this one risks serious blowback.
 
#11
California New Car Dealers Association
Click to expand...
Somehow the "California" part of this acronym eluded me thus far.

I get the impression the Car Dealer folk see this as the place to make a stand. If they win in California, they can win anywhere.

The odds on them winning in California -- in an honest way -- is nigh impossible though, so they're kind of setting themselves up for failure. And that might have a trickle affect across the country. Interesting strategic choice.
 
#12
This is nothing more than CNCDA (that's correct abbreviation per their letterhead) showing their members that they are 'doing something about Tesla'.

Tesla may get a slap on the wrist and maybe change the website at worst (which is probably a good thing--too darn confusing).

Net/net all of the Auto Dealers should start coming up with ways to be more competitive.

But instead of getting creative themselves, these good 'ole boys rather b*tch and groan.


 
#13
Doug_G said:
They're stealing Microsoft's old strategy. Announce a vaporware product, which is never delivered, just to kill sales in another company's product. (I personally know someone whose company they did that to.) However, I somehow doubt that it will be effective this time. If they had something anywhere near ready for production everyone would know about it.
Click to expand...

That's what the Frankenplug was supposed to do to Nissan. So far, not too successful in slowing up Nissan, either.
 
#14
brianstorms said:
On a side note:

I have first-hand experience with Microsoft announcing vaporware products that never ship just to screw with the competition. My first startup company was competition, for example. In 1995, Microsoft announced Blackbird, which was supposed to be Microsoft's big entry into web content authoring at a time when HTML was still new to people. Microsoft hoped that people would skip HTML and use Blackbird to create fancy, slick websites instead. My company had a complete client/server solution that worked on Mac and Windows and Microsoft started calling up prospective clients who were interested in our stuff, and flying them out to Seattle to show them Blackbird. Then they were invited to this gigantic 3000-person conference in Long Beach (I attended, to see this Blackbird crap first-hand) and it was remarkable. There was Bill Gates trotting out celebrities like a young Shaquille O'Neeal to talk about how great Blackbird was and how it was going to transform the web. Our clients dropped us and went with Microsoft. But Blackbird never shipped, and Microsoft turned out to be clueless with the web. (Arguably still are.)
Click to expand...

to be fair, BB was real - I knew people working on it. It just wasn't very good. I recall one comment that went something like "10 times more complex than notepad with none of the power."
 
#17
Okay, if such an animal as the CNCDA does indeed exist - and I'm assuming it does - I will say that, misguided as I believe they and their actions are, I cannot blame them for attempting to protect their constituents. So, seeking to request the DMV to chastise TM for that "ad" that I also find a touch exasperating is, for me, arguably appropriate.BUT - asking the Dep't of Motor Vehicles to revoke a manufacturing license? That's rich. So far beyond the pale that words fail. By the way, you Californian bureaucracy wonkers: just who (what diviosn of gov't) is it that provides such licenses in the first place?
 
#19
I met a young man that works for a company that represents dealers here in California. He asked me lots of questions about my Tesla and then told me he figures he has about ten years before he needs to find a new career. He knows it is just a matter of time before the dealer model disappears.
 
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