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 5 new jersey auto retailer w w w . n j c a r . o r g President’s MESSAGE | BY JAMES B. APPLETON The very existence and validity of the dealership franchise system is under attack. On March 11, 2014, the New Jersey Motor Vehicle Commission adopted a regulation that brings the agency’s processes in linewithexistingState law. This simple act of enforcing an existing law set off a firestorm for several days. NJ CAR responded to dozens of print, radio and television me- dia requests and put forward a strong defense of the traditional dealership franchise system. We told everyone who would listen that the dealerships were not attacking Tesla or trying to put the company out of business in New Jersey. TESLA is making this is- sue about Tesla and the company seems to relish its role as victim. The media has done a thorough job of conflating a variety of unrelated issues. There are quotes accusing the dealers of killing innovation or working against the electric car, ignoring the thou- sands of hybrids, electric and alternative fuel vehicles currently being sold by dealers at a far higher rate than Tesla. There are ac- cusations of dealers cutting a “back-room deal” to actually enforce the law, which the Administration and Commission are consti- tutionally obligated to do, while ignoring Tesla’s own admissions that they felt they had an agreement NOT to enforce the law. The dealership community supports theCommission’s ruling because we feel, rightfully so, that Tesla should be held to the same regulatory and legislative standards that every dealership must abide by in order to operate in New Jersey. Tesla builds an innovative automobile, but they have adopted an un- wise and, in New Jersey, unlawful distribution method. The Tesla factory-storemodel is unwise because, for Tesla to sellmore than a few hundred cars a year in New Jersey, the automaker is going to have to Tesla Distribution Method Is Unwise AND Unlawful President’s MESSAGE  continued on page 15