Tesla Bigot: IADA’s Bruce Anderson

Bruce Anderson, president of the Iowa Automobile Dealers Association (IADA), recently forced the shutdown of a planned day of Model S test drives being offered by Tesla Motors in Des Moines. I’ve written before about Tesla and how auto dealerships—and their political allies—oppose the all-electric car manufacturer’s direct-to-consumer sales model.

But what car dealers, dealership trade groups, and self-serving Luddites like Anderson really oppose isn’t a particular sales model or how Tesla works with its customers. Rather, they fear fair competition. Compared to Tesla’s next-gen vehicles, their products suck. And they know it.

IADA Bruce Anderson - RESIZEAs reported in the Des Moines Register on September 25, “The Iowa Department of Transportation asked Tesla to stop its West Des Moines test drives after being alerted to the event by the [IADA].” One local resident, who had scheduled a test drive on the final day that was cancelled, lamented, “I hope they get [the laws] changed, because it’s just ridiculous.” Of course, are any of us really surprised that Iowa’s car dealers—in the form of Anderson—went crying to mommy because of a little competition?

And the logic behind the shutdown? In Iowa, “state law requires auto dealers to be licensed, and by offering test drives, Tesla was acting as a dealer,” wrote the Register. And who drew this conclusion? Paul Steier, Director of the Department of Transportation’s Bureau of Investigation and Identity Protection. More proof of the lack of intelligence and spirit of fair play in both government and old boy networks like car dealer associations.

To add insult to injury, Iowa lawmakers have little interest in changing the archaic laws currently prohibiting Tesla from conducting something as simple as a test drive of one of its efficient, zero emission cars. The blatant kowtowing of Iowa politicians to big business flies in the face of the desires of Iowa consumers.

Iowa Senator Matt McCoy, chairman of the Senate Commerce Committee, is, ironically, a fan of Tesla’s cars, having test driven a Model S (in another state, natch) and publicly stated that he plans to purchase the less-expensive Model 3 after its release in 2017. However, McCoy is about as clueless and lacking in foresight as Anderson. “I have mixed feelings about it because I really like the car and I really like what the car stands for,” he said. “But in Iowa, we tend to respect our system and the way it was set up, and I don’t see any appetite to change that.”

Apparently McCoy’s “mixed feelings” are caused by his affinity for the Model S paired with his desire for corporate campaign contributions. By the Senator’s logic, his state would never have evolved beyond horse and buggy, because the Iowa Buggy Dealers Association would have called on its political friends and bureaucratic allies to block sales of the Model T—rationalized by antiquated laws passed before automobiles even came into existence.

Even West Des Moines State Rep. Peter Cownie, chairman of the House Commerce Committee, is in on the game. “You can’t have two sets of rules. That would create an unfair playing field for the small business owners and small car dealers,” he said. By Cownie’s logic, don’t the outdated laws preventing Tesla from offering simple test drives unfairly limit it from doing business and marketing itself in the state of Iowa? Tesla is, after all, a “small business” compared to Ford, Toyota, and GM (each of which, individually, produces more vehicles per day than Tesla has since its inception in 2003).

More important, aren’t these politicians, who were elected to serve their constituents, unfairly limiting the car buying options of those who voted them into office (many of whom have proven they wish to test drive and purchase all-electric cars, like those offered by Tesla)?

According to Anderson (a former attorney), auto dealership licensing “is a matter of consumer protection.” “You can’t just set up in a hotel parking lot and sell cars,” he said. Anderson denies targeting Tesla, saying “it’s not a Tesla issue. This is a regulated industry.” Meaning that it’s not only Anderson and dealerships that are the problem, but also state and federal politicians and bureaucrats. Do Anderson and the dealerships he represents really consider denying residents of their state the opportunity to test drive—let alone purchase—an all-electric vehicle to be “protecting” them?

model s and solar panelsCar dealers nationwide have been freaking out over Tesla’s entry into the crowded auto market. And for good reason. Tesla makes and sells sexy cars that are nearly silent, fast as a Porsche, and do zero damage to the local environment. But what really begins to sway consumers: Tesla’s all-electric vehicles are far cheaper to operate and maintain than their gas-guzzling siblings from Detroit and Tokyo. In comparison, the products from every other automaker—with the exception of Nissan’s all-electric Leaf—are more expensive to operate, damaging to human health, and contribute to climate change. (You can’t commit a Hollywood-style suicide in a Tesla with an open window in a closed garage.)

Because Tesla’s models are currently too expensive for the average joe, call the recent dealership shenanigans a pre-emptive strike. But pre-emptive or not, dealerships, their political allies, and shortsighted dopes like Anderson and his cronies are pulling out all the stops in their desperate efforts to stop Tesla in its tracks. Fortunately, Iowans can purchase Tesla vehicles online—like the rest of the country (helpful for residents of Arizona, New Jersey, Maryland, Texas, and Virginia, where sales of Tesla vehicles are either banned or restricted).

If you think auto dealers are panicking now, wait until Tesla introduces its much-anticipated Model 3 in about three years. Slated to start at roughly $35K, the “everyman’s Tesla” will bring the fight between old-school car dealers and Tesla’s superior alternative to a head. Both dealership owners and auto manufacturers will be frantically spinning their 1988 Rolodexes to reach out to any politician owing them a favor.

But fear not, tree huggers and lovers of future-tech. Tesla will probably get the last laugh. Legacy Luddites like Anderson, Steier, Cownie, and McCoy are a dying breed. Their protectionist attitudes and policies, sustained at the expense of their fellow state citizens, will soon lie in the dinosaur boneyard, just like those 12 mile-per-gallon Hummers that are no longer for sale.

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Curt Robbins

[Also see my response to blog post commenter “bob” and my original Time for Tesla post. If you agree with any of the above, send Bruce Anderson a Tweet at @IADA_Bruce and let him know your feelings.]


Curt Robbins is author of the following books from Amazon Kindle:

You can follow him on Twitter at @CurtRobbins, read his AV-related blog posts at rAVe Publications, and view his photos on Flickr.

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Electric Car Adoption: Not Why You Think

In the past, I’ve written about both the lack of innovation in the auto industry and Tesla Motors. Researching Tesla revealed many things. The physical, technical, and practical advantages of electric versus internal combustion cars are plentiful and amazing.

Yes, I’m convinced that the transition to fully electric cars is indeed inevitable. But it won’t happen for the reasons most people think—and it has nothing to do with helping the environment, running out of oil, or making the world a better place. While those are valid arguments that are well-and-good for the media and proponents of such voltage-based transport tech, they will have little to do with the inevitable success of all-electric personal transportation in the United States.

nissan leaf for linkedinMuscle cars are among the least efficient, loudest, and most smog-producing vehicles on the road. Despite this, they remain the most popular and revered of all cars ever made. I’d kill for a 1963 C2 Corvette or a 1967 Camaro. I watch Supernatural with my daughters just so I can hear the hunky 1967 Chevy Impala’s modified engine through my home theater’s subwoofer.

I can understand muscle car fans wincing at the prospect of driving across town in a nearly silent all-electric vehicle. On the surface, it doesn’t sound tough or cool—which runs counter to the 20th century-spawned notion that cars help define our personalities and, ironically, individuality (think James Dean, Steve McQueen, and Vin Diesel).

Let Me Count the Reasons

Advocates of electric vehicles, often tree-hugging environmentalists, new age hippies, and science geeks, give us countless reasons why electric cars will replace their fossil fuel-guzzling predecessors (not the least of which is the inevitable disappearance of oil). Melting ice caps, serious long-term health ramifications, and the prosperity of our children and our children’s children are all used to make us feel guilty about driving our noisy, sluggish, gas-guzzling sedans and SUVs.

But let’s not fool ourselves. Consumers will decide if electric cars replace internal combustion models, not governments, advocacy groups, or even the media. Because for consumers, it’s all about cost. We might be concerned about rising carbon dioxide levels and climate change, but if an exhaust-emitting internal combustion car is less expensive than a clean all-electric model, consumers—especially middle class consumers—will almost always opt for the cheaper model. At least if we want to take a vacation now and again or send our kids to college.

When Tesla Motors releases its much-anticipated Model 3 in 2017 or 2018—assuming they can actually sell it for $35,000—Americas will do some basic math and realize that they can have a car with decent range (200-250 miles per charge), significantly more storage, zero internally produced noise, Porsche performance (the current Model S sedan is literally faster than a Porsche 911), and the satisfaction of knowing they aren’t creating greenhouse gasses in their own back yard. For about the cost of a nicely optioned Ford Taurus or Nissan Altima, folks will realize they can have so much more.

Huge Savings on Consumables

But that’s the hedonistic car lover’s side of the equation. It’s after they do the consumables math, i.e., add up the costs of fuel and maintenance, that Americans will flock to electric cars in droves. This is primarily because, by selling a $35,000 high-performance all-electric car, Tesla (and any other manufacturer) doesn’t simply match the price of a gasoline-powered vehicle in the short term. It beats it in the long term—by a wide margin. Unlike fossil fuel-powered vehicles, the more you drive an electric car, the cheaper it is to own.

No oil changes, only a few bucks to charge the batteries (instead of the $50-120 required to fill the tanks of conventional piston-pumping vehicles), and no more standing in 10 degree F weather to fill their tanks at gas stations will convince consumers that electric cars aren’t only cheaper, but that they’re also more convenient. And convenience is what Americans are all about. There’s a McDonald’s on every corner and even Pizza Hut has a drive-thru window for a reason.

tesla model s replacement for blogA Tesla Model S owner in Wisconsin reported that he “barely even noticed” any increase in his electric bill when analyzing it to calculate how much it was costing him on a monthly basis to recharge his sleek all-electric sedan. I realize that’s a somewhat ambiguous statement, but the next time you “barely notice” the monthly accumulated gasoline bills for your car, let me know. Significantly less expensive fuel, combined with almost non-existent maintenance costs, dramatically change the overall cost of ownership of an all-electric car like the Nissan Leaf or any of Tesla’s models.

As one Model S owner commented, you simply charge it at night and replace the tires.

Car Dealerships Suck

Despite America’s love of cars, for the average consumer, a visit to a car dealership is like a trip to the dentist or an IRS audit. We don’t like it, and for good reason. It’s a smarmy, hawksterish zone where contention runs high and trust runs low. It’s populated by clueless salespeople, gaudy signage, and loud, obnoxious commercials. Most car dealers are a cheesy exercise in financial obfuscation, cheap and predatory sales tactics, and—all too often—a gross lack of professionalism and honesty. Yes, Lexus, BMW, and others luxury brands have done a lot to counter the mostly skanky state of the dealership industry, especially those representing the big middle class brands like Chevy, Ford, Toyota, Honda, Nissan, Chrysler, and Hyundai. But conventional car dealerships still suck.

During the next few years, two things will happen in the auto industry. First, a company like Tesla will produce an affordable, attractive, and performance-oriented all-electric vehicle with an acceptable range. Obviously, others will follow. Second, Americans will begin to perceive that they can save money by owning an all-electric vehicle.

Dramatically reduced fuel and maintenance costs will motivate consumers to jump on the electric bandwagon—sports car-like performance and gee-whiz technology will simply be the icing on the cake. Once consumers are buying electric cars as fast as they’ve been purchasing iPhones and iPads for the past few years, all auto manufacturers will embrace the approach. Electric sales will soon after outpace those of old school piston bangers with tail pipes.

In the end, it will be the savings and convenience that will convince Americans to get in bed with electric vehicles, not rescuing the environment or even the amazing performance. And if we get to avoid a trip to the dentist in the form of negotiating with sleazy dealership dorks who we despise—and don’t trust—all the better.

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Curt Robbins


Curt Robbins is author of the following books from Amazon Kindle:

You can follow him on Twitter at @CurtARobbins, read his AV-related blog posts at rAVe Publications, and view his photos on Flickr.