Missouri Debates Barring Direct Car Sales in Challenge to Tesla
Via Reuters
Missouri legislators are considering banning car makers selling direct to the public, in another challenge to Tesla Motors Inc's push to bypass car dealers.
A ban would make Missouri the fourth state after Texas, Arizona and New Jersey to stop Tesla selling its electric sports cars directly to drivers.
Missouri auto dealers have proposed new language in an existing bill that would force consumers to buy new vehicles only through franchised dealers, Tesla wrote on its blog.
"Trouble in Missouri. Auto dealers trying to sneak in a monopoly creation bill today," Tesla Chief Executive Elon Musk tweeted late on Thursday.
The bill with the new language, passed by the Senate on Wednesday, will go back to the House for a final vote," the blog said.
Musk has long argued that car dealers are a bad fit for 11-year-old Tesla because they make more money from selling traditional cars than selling the company's Model S.
Dealers say the franchise system, in which automakers rely on a network of independent dealers to sell cars, offers an extra layer of accountability for consumers. They argue that competition between dealers also lowers car prices.
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 →