Thursday, February 25, 2016

Is GM trying to restrict entry?

http://www.bloomberg.com/news/articles/2016-02-24/tesla-battles-general-motors-over-right-to-sell-cars-in-indiana

1 comment:

  1. It seems to me that this rule was put in place a long time ago to protect small business that couldn’t compete with the large automakers of their day. GM is is using it’s large corporate arm to fight against the rising tide of Tesla. Now GM has one valid argument it states “We welcome competition from any manufacturer,” Wetzel said. “Competition in a fair market only works when the same set of rules are applied to all participants. That’s what our bill would do. What we’re asking is: If you’re a manufacturer, you can’t own a dealership. We can’t, Ford can’t, and we’re just saying that is the way the market is set up and that’s what works best.”
    This law might have been created to help mom and pop shops compete against the large automakers of the 70’s but now it seems to be doing the exact opposite. GM has new competition and it doesn’t know how to re act except use to money to thwart it’s competition instead of using wit and intelligence and the all great American ingenuity.
    This is lobbying at it’s best, this next statement makes no sense to me whatsoever. “This is about protecting my constituents. If someone wants to spend over $100,000 on a car, that’s one thing. But when you are talking about a car costing $30,000 or $40,000, consumers ought to be able to drive to their local dealer and have a face-to-face conversation.” Please think about this, what is the difference between buying your car from Tesla or buying it from a franchise of Tesla? I would think you would get better service from the actual company Tesla than you would from a franchise.
    Our government needs to be allowing and encouraging people to start new businesses and promote competition, not protecting the big guys on already on the playing field.

    ReplyDelete