Pub. 12 2013-2014 Issue 4

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s 15 new jersey auto retailer w w w . n j c a r . o r g build “bandwidth” in its sales and service network. Themost efficient way todo that would be to appoint franchisees. TheTesla factory-store model is unlawful inNewJersey because the statute, on the books for more than a decade, clearly prohibits an automaker from owning a dealership, being licensed as a new car dealer or directly retailing cars in the State. The law requires Tesla to appoint franchisees. This law was enacted long before Tesla came along and it serves the public interest in competitive pricing, convenient warranty and safety r ecall service andhigh way safety. The franchise systemof independent n ew car dealership s promotes aggressive price competition, while the factory-store model advocated by Tesla creates a vertical monopoly and limits competition. The franchise systemalso ensures ready access towarranty and safety recall service andpromotes the public interest inhighway safety. Tesla’s factory-storemodel places the “fox in charge of the chicken coop” and li mits consumer access to a qua lified, independent source forwarranty and safety recall service. If Tesla is unhappy with the regulation a dopted by the NJMVC or with the State law that prohibits factory-owned new car dealerships i n New Jersey, they h ave three options: • conform the Tesla business model to State law and appoint fran- chisees to operate their retail stores in the State (which would be a good idea); • workwithLegislators on changing the lawto conformto theTesla business model (which would be bad public policy); or • challenge the regulations and/or the existing statute in a court of law (which is probably inevitable). The current lawinNewJersey—and the regulationadoptedonMarch 11, 2014 by the NJMVC to implement that law — is pro-consumer, because it encourages inv estment by independent franchisees in an extensive network of more than 500 dealerships across the State. All of you engage in vigorous price competition and offer con- sumers ready access to warranty and safety recall service. The industry is critical to New Jersey’s economy, generating $29.1 BILLION in sales and $1.4 BILLION in State and lo- cal taxes, while also employing more than 35,000 residents. This fight will likely continue in the Courts and/or Legisla- ture and NJ CAR will continue to defend the franchise sys- tem and the many benefits it brings to consumers. President’s MESSAGE  continued from page 5 N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S F A L L 2 0 1 1 28 new jersey auto retailer Management Training &Resource Center Offering On-Demand Access to Great Training, Great Trainers and Great NJ CAR Discounts Extending its partnership with DealersEdge ® - NJ CAR now supports an online store stocked with over 80 DealersEdge Training Programs and Print Resources at special, highly-discounted prices. Available to NJ CAR Members, this store is stocked with over 80 past webinar training sessions, featuring some of the best- known and most-respected trainers in the automotive arena. Explore this informative new NJ CAR-provided resource on your own: http://NJCAR.DealersEdge.com NJ CAR Members Get Special and Deep Discounts on all training and resources listed in the store ( both live and pre-recorded ) . Everything is discounted by 50% for NJ CAR Members! accounting Bruno, DiBello & Co., LLC ........................................................ Page 27 www.brunodibello.com Mironov, Sloan & Parziale, LLC ............................ Outside Back Cover www.mspcpa.net attorneys McElroy, Deuts h, Mulvan y & Carpenter, LLP ..................... Page 16 www.mdmc-law.com Wilentz, Goldman & Spitzer, P.A. ...........................Inside Front Cover www.wilentz.com automotive supply Wholesale Auto Supply Co. ..................................................... Page 18 www.wascoonline.com banki g/  nance Key Bank .................................................................................... Page 10 www.key.com Valley National Bank .................................................Inside Back cover www.valleynationalbank.com credit card processing Novera Payment Solutions ......................................................... Page 7 www.noverapaymentsolutions.com/njcar dealership brokerage/appraisals D.T. Murphy & Company, LLC ................................................... Page 21 www.dtmurphy.com advertiser INDEX F&I Training/Products Vanguard Dealer Services .......................................................... Page 3 www.vanguarddealerservices.com  nancial planning Wealth Preservation Solutions, LLC ......................................... Page 9 www.wpsllc.net insurance Creative Agency Group ............................................................... Page 5 www.creativeagency.com NJ CAR/Fotek Business Solutions .......................................... Page 24 NJ CAR/Workers’ Compensation Safety Group Dividend Program ................................................ Page 11 online training DealersEdge ® ............................................................................. Page 28 http://njcar.dealersedge.com online vehicle reg stration CVR ............................................................................................. Page 13 www.cvreg.com telecommunications NJ CAR Telecommunications Program .................................... Page 2 utilities MetroMedia Energy, Inc. ......................................................... Page 19 www.mmenergy.com