The Energy Racket

[Magda Hassan]

Tesla Owner: Chris Christie's Backroom Deals' are Making it Impossible to Sell Environmentally Friendly Cars

Posted by: Bob Cull in TEApublicans in Action March 17, 2014

In yet another example of his heavy handed brand of governance, Chris Christie has bypassed the state legislature and ordered the New Jersey Motor Vehicles Commission (NYMVC) to implement a rule change which will in effect put Tesla, the innovative electric car company, out of business in New Jersey.
Tesla CEO Elon Musk wrote in his blog after learning of the backroom deal last week:
"Since 2013, Tesla Motors has been working constructively with the New Jersey Motor Vehicle Commission (NJMVC) and members of Governor Christie's administration to defend against the New Jersey Coalition of Automotive Retailers' (NJ CAR) attacks on Tesla's business model and the rights of New Jersey consumers. Until yesterday, we were under the impression that all parties were working in good faith.
Unfortunately, Monday we received news that Governor Christie's administration has gone back on its word to delay a proposed anti-Tesla regulation so that the matter could be handled through a fair process in the Legislature. The Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey."


Under the new rules, Tesla, which currently has licenses for two company-owned outlets in the state, would no longer be allowed to sell their vehicles through company owned stores. They would be required to utilize third party dealerships, a business model which the company feels is not right for their product.
Tesla represents a new technology which is more difficult to sell than traditional gasoline powered vehicles. The company feels that it is better equipped and more motivated than their competitors to exert the extra effort required to sell this brand of car.
Traditional New Jersey car dealers do not see it that way. They claim that by not using third party dealers Tesla has an unfair advantage over other manufacturers who "must" use that business model.
Of course that cannot be true. Tesla was able to license two outlets in the state under the existing rules and therefore the option must have been available to the other manufacturers as well. They simply chose to use the standard model of third-party outlets. What the dealers are really objecting to is being shut out of the market. After all, the Tesla is a luxury automobile which would carry hefty commissions if they were allowed to sell it.
With this move by Christie, New Jersey joins Texas as the second state to intentionally make it difficult for the company to sell their cars. The case in Texas is different since the state already had a law on the books requiring auto makers to use the third party dealership model. But a law had been proposed which would have allowed an exemption for Tesla to sell their cars in the state, but was never brought up for a vote before the legislature adjourned.
The failure of these bills to make it to the floor means a long wait for another chance, since the legislature will not reconvene until 2015.
These two examples reveal that when Republicans say that they are the business friendly party, what they mean is they are friendly to the business that best greases their palms.
http://www.usatoday.com/story/money/cars...e/6427135/