Dealerships

[Mark Tomlinson]

Here's an interesting thing. Tesla Motors wants to open it's own dealerships - or rather 'stores' - because of the unique nature of their vehicle. Part of it is because conventional dealership staff come from the internal combustion engine world and can't speak to or service BEVs or PHEVs. But it's obviously more about conventional dealerships being, well, car dealers and all the trust issues and baggage that comes with it.

The reason I post it here is because Ian and VV have indicated they want to sell through their own channels as well. But Tesla has run into snags as many states have regulations that won't let auto manufacturers own the dealership. So they are going to have to broker deals with a third party, and existing dealerships are the most likely candidates.

So will VV be able to open their own stores because they are three wheeled vehicles, much like Harley-Davidson does with motorcycles? Or will some states try to put them in the automobile arena and force them to lose control over the "sales experience" (I hate that term) and service departments?

[Bladerunner]

Mark where did you get that Harley owners their own dealerships. Each dealership is independently owned and operated.... at least all the ones I have ever come across and I can't find any reference to buying direct. And most laws that I know about are for vehicles dealerships not broken down to autos and motorcycles but since it is almost different in every state I can't say that for a fact.

My take on what Ian had said about selling their vehicle was much like a Saturn dealership where the price is pretty much a shopping list and you don't haggle. The other method was to buy from a web page (shopping list method) and then the local dealer would have the V1 equipped and ready for you. (If this portal is paid for by the dealers it seems that this is a way around the states that have laws regulating manufacture vs dealers selling)
Don't know if there is a loophole for the initial build or time frame for dealerships getting thrown in the mix in CA. There may be an exception with the initial 4000 or what ... Howard better be swimming with the sharks to find out I guess.

[RAN]

Unfortunately, vehicles (and companies) like Tesla, VV and Aptera don't fit neatly into the conventional cubbyholes of current product/manufacturing/design. This means new regulatory thought is necessary, and regulators aren't exactly known for their resourcefulness.
Take the diesel genset as an example: because diesel emissions are determined by the *gallon* instead of by the *mile*, they won't qualify as clean enough. This rating system doesn't begin to cover the real-world realities of the V-1 and Aptera, where the genset only needs to run half the time, and will run at one constant speed, both of which will bring emissions way down.
VV should be able to open their own dealerships. A possible way around current state laws would be to do all the actual ordering/purchasing online, and the "store" locations could then be defined as something different.
Also, though it's too early to tell, Malcolm Bricklin's idea of multi-brand EV/hybrid dealerships may be a good way to go.

[jmeineck]

Yes I agree RAN, It is going to be interesting to see if Malcolm Bricklin will get his idea going or not??? I think that would be very cool if it works out.

[Mark Tomlinson]

I probably made some bad assumptions regarding Harley. My comments about VV are based on Ian's comments in the audio interview and illustrations of what the VV stores will look like.

The point of my question is that the VV is a different type of vehicle and will require a fairly high level of management from VV in sales and service. If VV wants to franchise the stores, they may run into difficulty because many states require a separation between the manufacturer and the dealership. Or will the manufacturer classification as a motorcycle exempt them since the regulations were put in place to protect automobile dealerships? (Note that is a manufacturer classification, and does not imply that the vehicle will be sold or insured as a motorcycle).

I forgot about Bricklin. Son of a gun, his idea is starting to make sense. Not only does it provide economic relief to the start-ups, it provides a path to navigate the confusing mess of individual state regulations.