Dealer chum concedes eventual defeat

Jim Ziegler TeslaMondoLongtime auto dealer consultant and speaker Jim Ziegler says Tesla will eventually sell legally in all 50 US states. But beyond that, Ziegler predicts other automakers will follow Tesla’s lead — just as dealers fear. Remember, Tesla never intended to dismantle the century-old franchise business model. It simply didn’t want to participate in it. So the Tesla battle is all about a precedent and nothing more. The nightmare scenario for dealers is that Tesla is cracking a dam and will soon allow a flood of similar factory-direct efforts. TeslaMondo readers already know the recent history on the subject and remember that Ford and GM made overtures in 1999 but had to retreat in defeat.

TeslaMondo has long predicted:

1. Another retail invasion by big OEMs.
2. Better profit margins as a result.
3. No improvement in typically lousy customer experience. A cattle house is a cattle house regardless of who pays the workers.

 

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