Delaware Supreme Court ruling is a kick in the nuts for automotive dealers

[BOHICA]

more states franchise laws will fall…

 

https://news.yahoo.com/state-supreme-court-overturns-judges-222523106.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACPGyHh1fMbLrq4nS6I3w9rWXsEG6QALKlunHbVorLjCzHovCc8LwpUl2oseUnQZu8YQM9uFlHRs-1YHHHtvdUyrZaoS_dtz0pVwKknooDduAn98iCMNPMl5gFE_G4HCJBhpKSkiEfArtqoRMVNyc0qtAvWNbS6SD1Je33dGUBtF

The Supreme Court reversed that decision and sent the case back to Superior Court, noting that the franchise act was enacted to address the disparity in bargaining power that permitted automobile manufacturers to exert economic pressure over their franchises. The justices said the law’s definitions exclude Tesla because the company sells its vehicles directly to consumers without using independent franchise dealers.

“It bears repeating that the Franchise Act regulates the business relationship between a manufacturer and a dealer,” wrote Chief Justice Collins Seitz Jr., adding that nothing in the law or its legislative history supports DMV’s interpretation that the Franchise Act is intended to prohibit the direct sales model.
 

 

[BOHICA]

$910 million in profits is what Tesla, Rivian and Lucid cost California auto dealers in 2022 by direct sales without the middle man.

https://insideevs.com/news/667712/tesla-lucid-rivian-direct-sales-takes-profit-traditional-dealers/

[Snake]

[Voodoo]

If people are happy buying direct and getting no service, have at 'er.

Nobody forces the dealer to sign the contract.

Once the network of repair shops collapse, buyers will maybe think twice about what and where they buy.

Anything I can't afford to throw away or fix myself, the number one concern is where do I go when I need parts and service,  and shop accordingly.

Sucks to be you if you don't.