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A judge in Massachusetts denies a request by auto dealers to grant a preliminary injunction...

A judge in Massachusetts denies a request by auto dealers to grant a preliminary injunction against the ability of Tesla Motors (TSLA -0.3%) to operate a store in the Boston area. The bigger issue: If Tesla keeps winning the right to operate its own stores and delivers even a modicum of success is the symbiotic auto dealer-manufacturer relationship at risk?
Comments (19)
  • thank goodness. im sick of unions.
    20 Nov 2012, 01:37 PM Reply Like
  • Forty-eight states have banned or restricted factory ownership of dealerships. Mass looks like its getting out front on this one, but why? This is not a union issue. It's a franchise/manufacturer issue.
    20 Nov 2012, 01:42 PM Reply Like
  • "Massachusetts State Automobile Dealers Association (MSADA) represents the interests of 465 franchised auto and truck dealers. Our primary focus is to be the dealers’ voice before state government in the legislature and various administrative agencies."


    excuse my ignorance if i'm wrong, but that text led me to believe it was a union.
    20 Nov 2012, 01:47 PM Reply Like
  • I would say "militant association" is the better way to characterize these entities, in pretty much any state
    20 Nov 2012, 01:57 PM Reply Like
  • How were the Saturn auto stores run?
    20 Nov 2012, 01:37 PM Reply Like
  • The same way Tesla stores will be, by the factory owners. I say, go Tesla!
    20 Nov 2012, 01:45 PM Reply Like
  • Unions killed Twinkies.
    20 Nov 2012, 01:40 PM Reply Like
  • Hostess Twinkies’ former CEO tripled his salary earlier this year to $2.55 million while the company knew it was heading towards bankruptcy, according to a statement by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.


    And a number of top executives reportedly saw massive pay raises, some nearly doubling their salary. And now the new CEO is blaming the unions for the company’s demise.


    Ah, another CEO who courageously blames the union for his company’s failure, while omitting the part about the company tripling his immediate predecessor’s pay, and reportedly doubling the salaries of other top executives, while knowing that the company was on life support. Damn unions, indeed.


    Is this what they teach in business school these days? As popular as “peer group compensation benchmarking” is in the corporate world, there’s a distinct lack of evidence that higher compensation delivers results. (Case in point: Hostess. Second case in point: Wall Street.)
    20 Nov 2012, 02:21 PM Reply Like
  • while i have no idea about compensation in bakeries, i can tell you that performance on wall street was absolutely tied to higher compensation. investors demanded any MBS instrument or derivative of the former they could get their hands on. bulge bracket firms obliged, and whoever sold the most to investors made a larger bonus. this was all facilitated by bill clinton's "National Homeownership Strategy" in 1994.


    case in point: higher bonus incentive drove bankers to securitize, structure, and sell more instruments to "qualified" investors, i.e hedge funds, sell side firms, insurance companies, governments, mutual funds, fannie/freddie, pensions, endowments, etc.


    do your research, my friend.
    20 Nov 2012, 02:28 PM Reply Like
  • Bakers’ Union has 8 Vice Presidents and 2 Million in Executive Salaries


    The Bakers’ Union (BCTGM) has 58 employees. 29 of them make more than $100,000 a year.
    The Bakery, Confectionery, Tobacco Workers and Grain Millers’ International Union has 8 Vice Presidents. (One is an Executive Vice-President).
    These 8 Vice Presidents make anywhere from $218,989.00 to $161,789.00 for a combined total of over 2 million dollars. Additionally there’s a Secretary Treasurer who makes $244,396.00


    "Stand fast boys, we're behind you all the way!"
    20 Nov 2012, 02:39 PM Reply Like
  • Sorry, the consumer killed Twinkies. Twinkies have lossed market to a consumer conscious awareness of health issues. Hostess should have been developing new product to meet an evolving consumer demand.
    21 Nov 2012, 05:08 AM Reply Like
  • Wise judge. Hopefully this will deter other dearlership groups from attacking Tesla, but I doubt it.
    Tesla seems pretty confident it's in the right on this...not sure what arguements the dealers use? How does Tesla's sales model hurt consumers?
    20 Nov 2012, 01:56 PM Reply Like
  • I have purchased 19 Toyotas since 1978. My greatest anxiety is when I have to visit a dealer showroom and become involved in the price bargaining adventure with the salesman, manager, district manager and now that I am an old hand in this process, finally the owner of the dealership. Last year I visited the Tesla showroom and placed an order for two S sedans. It took less than 30 minutes and it was a totally enjoyable experience being treated by the knowledgeable showroom staff.
    Every step of the way in dealing with Tesla has been professional and satisfying. I have no doubt that delivery of my two sedans will be a cake walk.
    If it sounds to good to be true, then try it for yourself.
    My physical fitness program to get in shape to enjoy my Tesla's is on schedule to be completed before my 80th birthday in March.
    You will recognize me as I drive by you and wave, while you wait on line for gas at $4....$5.....$6 per gallon ad infinitum.
    Stay well naysayers and stay in shape.
    Vico Confino
    20 Nov 2012, 01:57 PM Reply Like
  • That's the spirit. You're awesome. Hopefully this people will soon wake up.
    20 Nov 2012, 04:22 PM Reply Like
  • I like it, Vico. I wish I could join you in that arena but, until they come out with a Tesla 4x4 truck, I'll wave back admiringly.
    21 Nov 2012, 09:27 AM Reply Like
  • "... If Tesla keeps winning the right to operate its own stores and delivers even a modicum of success is the symbiotic auto dealer-manufacturer relationship at risk?"
    Yes, and THANK GOD!!!!
    20 Nov 2012, 04:21 PM Reply Like
  • The symbiotic one between manufacturer and dealership might not be, but the parasitic one between customer and dealership definitely is.
    21 Nov 2012, 03:22 AM Reply Like
  • Way to go Nico!


    I'm for TESLA all the way! We must break the dealership monopoly and the oil monoply and the banks monoply on the middleclass working stiff! We have found that government laws work!
    20 Nov 2012, 05:40 PM Reply Like
  • There are two company owned automobile showrooms on Park avenue in Manhattan. One is owned by Ferrari and the other by Mercedes Benz. No one seems to be complaining about these company owned dealerships. While the Ferrari store is recent, the Mercedes one has been there for decades.
    21 Nov 2012, 04:52 AM Reply Like
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