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Great publicity for Tesla, bad for the auto dealer cartel. You can't get much more anti-competitive than filing suit to block Tesla from opening a store.
There's one detail in that article I find troubling:I think this was the original article in the local Richmond paper that broke the story. Not too much more detail.
(Emphasis mine.) Is that accurate? Is the settlement a matter of public record? I can't find anything in basic Google searches, other than news articles (from then and now) which, as noted, don't go into much detail.In September 2013, a settlement was reached between Tesla, the DMV and the state dealers group, under which Tesla was allowed to open one dealership in Northern Virginia, which it could operate until Aug. 25, 2017. After that, it would have to find an independent dealer.
There's one detail in that article I find troubling:
(Emphasis mine.) Is that accurate? Is the settlement a matter of public record? I can't find anything in basic Google searches, other than news articles (from then and now) which, as noted, don't go into much detail.
There's one detail in that article I find troubling:
(Emphasis mine.) Is that accurate? Is the settlement a matter of public record? I can't find anything in basic Google searches, other than news articles (from then and now) which, as noted, don't go into much detail.In September 2013, a settlement was reached between Tesla, the DMV and the state dealers group, under which Tesla was allowed to open one dealership in Northern Virginia, which it could operate until Aug. 25, 2017. After that, it would have to find an independent dealer.
Thanks for posting that, Bonnie. I was half expecting someone to just reply "file a FOIA request" (or the VA equivalent), but you clearly took it to the next level.
The article seems to be referencing #4 in the agreement, which specifies a 30-month time frame. I'm not a lawyer and the wording isn't 100% clear to me, but it looks like it's saying if someone files something stating they're willing and able to serve as an independent dealer for Tesla, then Tesla must stop operating its own location. But then it also says Tesla is allowed to oppose the filing, which to me means they can operate as long as they want, until they agree to work with an independent dealer. But that whole section can only affect the Tyco Road location; I agree it has nothing to do with opening a second location in Richmond. The whole "in the dark of the night" arguments quoted in the Reuters article is completely absurd.
One small point: nothing in the VA news I've seen so far mentions GM. I know they've been behind a lot of the shenanigans in other states, and I wouldn't rule out their involvement here, but so far they don't seem to be openly involved. Do you have evidence of their direct involvement? (And note I'm NOT by any means defending GM here.)
Unless GM also filed an open records request for this, their shopping it around in Indiana means someone in VADA violated the confidentiality agreement. Bonnie, would you be interested in following up your open records request with a request to see if there were any previous open records requests for this document?
This section shall not prohibit: ...
The ownership, operation, or control of a dealership by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof, if the manufacturer, factory branch, distributor, distributor branch, or subsidiary has been engaged in the retail sale of motor vehicles through the dealership for a continuous period of three years prior to July 1, 1972, and if the Commissioner determines, after a hearing on the matter at the request of any party, that there is no dealer independent of the manufacturer or distributor, factory branch or distributor branch, or subsidiary thereof available in the community to own and operate the franchise in a manner consistent with the public interest;
Bonnie,......
Please check out #9 when you read it. My reading of this says the dealership lobby has no standing regarding if Tesla can open more stores or not. The agreement is to allow them to open one -- but nothing in the agreement NOTHING has anything to do with any future facility Tesla may choose to open.
Also, GM's insistence that Tesla has only 30 months to operate? That set off my bs detector. And guess what? NOT TRUE. GM is playing fast and loose with the facts here. (Shocker, I know.)
View attachment 114620
Thanks for the additional clarification.It says this particular agreement applies to the one store at Tyson's Corner and nothing else. Only. When you read #9, it clarifies the agreement does not apply to any future property. The doc calls out the boundaries 'this store only (#4), nothing to do with the future (#9)'.