GM says it will make massive profits by using Tesla's direct model

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GM says it will make massive profits by using Tesla's direct model

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I totally dislike dealers. My next car will be bought from a manufacturer that doesn't use dealers.

sebastian.tristan
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A hundred years ago dealerships were originally chartered to do just warranty and other maintenance. Dealerships could and did sell new cars but had trouble competing with manufacturers who were selling direct. But warranty and maintenance were not enough, they saw the future and wanted in on lucrative new car sales. They also saw how having exclusive rights to sell automobiles would allow them the liberty to markup the product as they saw fit and make them significant profits. But manufacturers didn't necessarily want to give up selling their vehicles Direct-to-Consumer. Dealers needed to get clever so they organized their own mouthpiece called the National Automobile Dealers Association (NADA) which quickly became one of the wealthiest and most powerful lobbies in DC. It took many years and millions in "lobbying expenditures" but the NADA in collusion with state governors worked to create automotive franchise legislation. These automotive franchise laws laws now regulated the business in such a way that it created an exclusive and permanent middleman position for the sale of all new cars. The right for auto manufacturers to sell their own products was taken away from them and given solely to franchised new car dealerships. The NADA and dealers will tell you that this was necessary in order to provide the consumer with "Consumer Protection". They will say they're a necessary part of the sales equation in order to protect consumers from those unscrupulous manufactures that might rip you off. The "in-your face" irony of that comment is so risible.

Tron-Jockey
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I hope this is successful. I would order a GM EV now if I didn't have to deal with a dealer.

thewolfdoctor
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Hey my car is now part of the official B-reel for your full charged live promo. That’s my Plaid with the color shift purple to blue (Stek Dynoprism) and you can see Marty and Wil’s car’s from Tesla Club SoCal (Lightning wrap and palm trees) See ya next year viking.

legacytesla
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Mary you did it!
Tesla once again just follows GMs lead.

toughlove
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If so many people in the USA hate car dealerships and the antiquated laws mandating the requirement for manufacturers to have them, there may be one option to be rid of them, and that is through Ballot initiatives that is an avenue to change laws existing in 27 States.

MyIncarnation
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They will be systematically eliminated because there is no real maintenance to deal with and most people hate going to dealerships for any reason in the US. I used to sell cars, new and used.

tonyrome
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Some of the early sellers of their New Car Dealerships have already invested in drive thru burger places. I tried one and it went like this - Can I take your order? Yes, burger, small fries and medium coke. OK drive to the pick up window. Hi, do you want to upgrade to a cheeseburger? OK, I'll ask my manager how much. Oh will you also make it large fries? OK, let's see what kind of deal we can offer you. Your burger is ready, but until we can finalize your order, just pull forward into the waiting lot. It shouldn't be long...

r.a.monigold
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I’m for anything that cuts out car salesmen … too often they are expert con artists well versed in tricking customers into buying the wrong vehicle/options for the worst price.

douginorlando
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Tesla is having so many impacts in the car industry, yet still a lot people in denial....

vancity
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Probably need only 10% of current dealership to support sales and maintenance. This 10% could be bought up by GM?? Do dealers really add value at the moment???

simonpannett
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I had a very pleasant experience when I bought my new Subaru! I can't say the same with any GM dealers I previously bought cars from. I have friends and family who bought Tecla's and loved their sales methods! I plan on getting a new Tesla in the future!

johnreese
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I really like your content, but I found the editing less than perfect this episode. There were many instances where voice cut abruptly, or video looked like frames were dropping.. These may be my fault, but I don't think so... Hopefully you can resolve this if it was an issue on your side.

paul
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Dealer footprints will be reduced as far as land and inventory.

gilrose
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I think dealership groups know they have to roll with some amount of changes because they know full well people HATE, and I'm not being hyperbolic here, HATE dealerships and car salesman.

This situation also sucks for the few car salespeople who aren't garbage humans, but they've got to roll with it.

godofdun
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Here is how the Mercedes dealer made me rage quit, stop at the Tesla showroom 12 blocks away and order a Model X.

Went in for the driver window button not working. Which requires the entire windows and window heater switch block to be replaced at $400. Which happened every 4 years.

Got the car back. The heater was on. It was 97F out, a heat wave. It was stuck on heating with max fan. So replacing the switch block located in the console between the seats ... broke the AC controls in the dashboard. Coincidentally while in their care. They wanted $2k to fix it.

I know its fraud, they know its fraud and I fixed the problem permanently.

dirkbester
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I can hear the dealers saying “ ok anything, but just don’t force us to spend a million dollars or two to continue to sell GM EVs.”

richardgoldsmith
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With direct sales, salesperson commission won't have to be paid. So for the dealership owner it's a wash. The dealership may also get to save on real estate.

samboni
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The 2CV Citroen used to be shipped to customers as a flat pack. You bolted it together yourself.

jimgraham
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Dealerships should save a lot of money on insurance and taxes on inventory. They also don't need to rent space to store inventory. Sales staff? Those have to be expensive.

frankcoffey