The reason I love Tesla Motors current business model
The auto industry needs change and I love the current Telsa Motors business model. The world is changing and it’s about time the auto industry changes with it. Personally I’m tired of my country getting pushed around by these oil producing countries, not only that I’m tired of my country men getting squeezed out for the little money they do have from what I like to call unnecessary up-sells.
For those of you that don’t know as of March 2014 you can purchase an electric Telsa Automobile online without having to go to any Auto dealership. At the moment in Electric car maker Tesla is fighting several dealerships in several states in America who want the rights to sell Telsa cars to their customers.
Dealers are privately owned and being that Telsa is an unconventional company in my opinion I think they’re trying to avoid the Up-sells that dealerships are going to want to add to the selling of their cars. As many of you know when it comes to auto manufacturing many auto manufacturers create cars that often need frequent repairs. The reason most auto manufactures do this is to help keep dealerships in business. Think about this for a second The GM recall for the Ignition Switch was not just for 1 year. All 2005-2007 Chevrolet Cobalts were involved in the recall That’s 3 YEARS.
How long did it take GM dealerships to find this out? Now if GM was selling their automobiles from their warehouse chances are customers would have let them know about this immediately. However being that Dealerships were probably making money from this they probably saw no need to tell the public that “hey your car might suddenly shut off while your driving on the highway if have additional items on your car key ring.
American auto manufacturing needs to make a comeback in a major way and the old model of doing things need to change in fact instead of all these car salesmen running I would like the American entrepreneurial spirit to come alive and if necessary create some need competition in the electric car manufacturing. I would prefer the electric auto sector to look more like the cellular phone sector where competition is driving prices down not up.
What these car salesmen do is they drive prices up with their added fees and unnecessary warranties. If there was real competition in the auto sector especially now prices for automobiles would have to come down and not only would the have to come down but cars would retain their value a lot better.
How this would happen in my opinion is auto manufactures reputation. Example if Tesla motors continuously made top quality electric auto mobiles and they provided excellent customer support while doing an excellent job doing repairs and maintenance etc. Their cars would retain their value based off their reputation, potential buyers could simple read consumer reviews about Telsa cars which would justify their retained value.
When independent dealerships start getting involved things start to become complicated for the manufacturer. The thing to remember with dealerships is there end goal is to get people coming through those doors. Being that Telsa is currently ranked number one Independent dealerships need a way yo bring customers to their cars and even if a customer comes to the dealership looking for a Telsa the dealership will more than likely talk the customer into purchasing a gas guzzling car or a car that uses both electricity and gas.
It’s simple Car dealerships are in it for the free promotion, if dealerships know that they’re not going to make residual income from the Telsa Motors they’ll use the Telsa for marketing purposes and when customers come into their dealerships looking for the Telsa salesmen will work their behinds off trying to get those customers into another vehicle that will help the dealerships bottom line.
I think if Telsa can hold off the car dealerships and continue to make quality cars they will in about 5 – 7 years change how cars are manufactured and sold in North America. The old way of doing things in the auto sector has proven to be disastrous people are looking for quality and competition in Auto sector. Also I’m tired of going to war over oil, oil has enough control over our lives as it is at the very least I’m hoping electric and other cars that don’t use gas will lead us into the future. Good job Telsa Motors I hope you don’t give in to the corporate pressure.