Massachusetts Judge Sides With Tesla in Initial Ruling
BOSTON — The Los Angeles Times reports that a Massachusetts judge sided with Tesla Motors in its initial ruling on a lawsuit initiated by dealers across that state. Dealers in Massachusetts and New York are suing Tesla Motors for operating showrooms under its franchise.
According to the Times, Massachusetts dealers were denied a temporary restraining order and injunction in the lawsuit in the Norfolk County Superior Court.
In an Oct. 22 blog post, Tesla Chairman and CEO Elon Musk defended his stores and gallery locations, explaining that they create an advantage for dealers by educating the customer and then direct the shopper to go online. He also referred to the lawsuits as “starkly contrary to the spirit and the letter of the law.”
Charles Cyrill, the National Automobile Dealers Association's spokesperson, said the association is still reviewing the decision.
In a statement e-mailed on Nov. 12, NADA Chairman Bill Underriner said, “NADA has serious concerns about Tesla's intentions. We are seeking a meeting with Tesla executives, including its CEO Elon Musk, to discuss these concerns … NADA supports the franchised new-car dealer system, which has done a remarkable job for more than 100 years serving the needs of both manufacturers and consumers. Tesla may not yet recognize the value of the independent, franchised dealer system, but as its sale increase, NADA is confident it will re-examine its business model.”
More Industry

Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →