NJ OKs new car dealer rule Tesla calls 'affront'

Mar 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 S electric car tops registrations in Norway

5 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Tesla shares fall further on Model S fire

Oct 03, 2013

Shares of Tesla Motors are down another 5 percent as investors in the high-flying company assess the fallout from a fire in one of its $70,000 electric cars. ...

Recommended for you

California bans paparazzi drones

11 hours ago

California on Tuesday approved a law which will prevent paparazzi from using drones to take photos of celebrities, among a series of measures aimed at tightening protection of privacy.

Remote healthcare for an aging population

Sep 30, 2014

An aging population and an increased incidence of debilitating illnesses such as Parkinson's and Alzheimer's disease means there is pressure on technology to offer assistance with healthcare - monitoring and treatment. Research ...

User comments : 2

Adjust slider to filter visible comments by rank

Display comments: newest first

alfie_null
not rated yet Mar 12, 2014
Car dealers flexing their political muscle. Think I love them almost as much as politicians.
antialias_physorg
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.