NJ OKs new car dealer rule Tesla calls 'affront'

March 12, 2014 by Bruce Shipkowski

New Jersey motor vehicle officials have approved a regulation that would require all new car dealers to obtain franchise agreements to receive state licenses.

The regulation was adopted Tuesday. It effectively prohibits companies from using a direct sales model, which cuts out the middleman and takes vehicles directly to customers through smaller retail establishments.

Critics say the will hamper the electric-car industry's attempts to expand in New Jersey.

Palo Alto, Calif.-based Tesla Motors is one of the electric-car firms that would be affected by the new rule. It calls the rule "an affront to the very concept of a ."

Explore further: Tesla to launch electric sedan in US on June 22

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not rated yet Mar 12, 2014
Car dealers flexing their political muscle. Think I love them almost as much as politicians.
not rated yet Mar 12, 2014
Well, if you're a middle-man you're, when all is said and done, superfluous to the entire retail chain. That only requires a producer and a consumer.
No wonder car salespeople fear for their jobs.

I wonder when the same logic will be applied to 'managers' (or marketing people) to get rid of them.

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