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Why dealerships should embrace Tesla's direct sales competition

National and regional dealership associations have it in for Tesla Motors. For the past few years the organizations have been pushing lawmakers – to whom, it bears mentioning, they have made generous financial contributions – for legislation that would make it difficult for the Californian automaker to continue with its direct-to-consumer, company-store sales model. This is, of course, in addition to laws already on the books which make it illegal for manufacturers engaged with existing independent dealership networks to operate their own retail locations. As you may have heard, the dealers have recently had success in New Jersey and, previously, in Texas. Arizona passed a law in 2000 that forbids manufacturers from obtaining a dealer's license, completing the triad of states which now restrict sales from Tesla stores. Meanwhile, the company has had some amount of success pushing back against these efforts in Massachusetts, Ohio, New York and North Carolina. It is a constant battle, though, even in most of those locales. Direct sales are key to Tesla's success. Direct sales are key to Tesla's success. It's a big part of how the company managed to move from a simple start up to something of an American automotive phenomenon. While CEO Elon Musk likes to say that it uses this method because selling an electric car would somehow be a conflict of interest for dealerships that also sell conventionally- powered vehicles, there is really a lot more to it than that, and it's wrapped around the customer experience. You can sit at home in your pajamas and configure exactly which color and options you want for your Model S over the Internet, send an electronic payment and have that exact car arrive at your door some weeks later. The company stores are an outgrowth of that concept, but allow you to see physical samples of the colors and materials involved, take a test drive and interface with a friendly human who can immediately answer any questions you might have, as well as facilitate financial transactions. You still get the exact car that you order. Having company-owned stores lets Tesla keep complete control of its entire retail network and therefore, the buying experience. Staff aren't paid by commission and are encouraged to be truly customer-focused.

Recharge Wrap-up: Smart Fortwo engine fires, Tesla finalist for Extole Advocacy and Customer Experience award

NHTSA has launched a preliminary investigation into complaints of Smart Fortwo engine fires. So far, the agency has received eight complaints about the rear engine compartment catching fire in model year 2008 and 2009 Fortwos and quickly engulfing the car. Six of the fires occurred while driving and were preceded by a check engine light. "The safety of our customers is our primary concern, and we are cooperating with NHTSA in its inquiry," says parent company Mercedes-Benz. "We are not aware of any injuries related to this inquiry." Read more from Automotive News. Volkswagen will pay $1.6 billion (US) in Canada as part of a settlement of its diesel emissions scandal. The funds will be used to fix or buy back some 105,000 affected cars, compensate owners between $3,815 and $4,451 above the buyback price, and pay a $11.2 million civil fine. So far, VW has agreed to spend over $18 billion in North America in connection with its diesel emissions cheating, and is expected to settle on a resolution of its 3.0-liter diesel vehicles in the US soon. Read more at Hybrid Cars, or from Automotive News. Tesla is one of three finalists for the Extole Advocacy and Customer Experience Award. The award recognizes companies that turn customers into brand advocates through referral programs. In Tesla's current program, customers who buy a car using a referral link get $1,000 off the price of their car, while referring owners are awarded prizes including a signed Powerwall 2 and invitations to unveiling events. Referring owners are also entered into a drawing to win a Model S or Model X. "With a disdain for paid advertising, Tesla Motors is leading the trend of reaching new customers through existing ones," says Extole. The other finalists are Hanna Andersson and Ulta Beauty. Read more at Teslarati. Related Gallery Review: 2009 Smart ForTwo View 20 Photos News Source: Automotive News, Hybrid Cars, Automotive News, TeslaratiImage Credit: Copyright 2016 Sebastian Blanco / AOL Government/Legal Green smart Tesla Volkswagen Green Automakers Safety Diesel Vehicles Electric recharge wrapup

Consumer Reports says Toyota, Ford, Honda and Chevy are big winners in brand perception survey

According to Consumer Reports, the automotive brands that stand out in the minds of car buyers are, in order: Toyota, Ford, Honda and Chevrolet. This news comes after the magazine polled its readers, asking them to take into account vehicle quality, safety, performance, value, fuel economy, design/style, and technology/innovation - which are the factors that car shoppers are most influenced by.
It's important to note that this award is only about perception. In other words, it's perceived quality, not actual quality. "Often, perception can be a trailing indicator, reflecting years of good or bad performance in a category, and it can also be influenced by headlines in the media," said Jeff Bartlett, Consumer Reports deputy automotive editor.
The brand that made the biggest jump in perception amongst Consumer Reports readers is Tesla, which posted an impressive 47-point gain to finish in fifth place. Subaru is also notable for finishing in the top 10, despite being one of the smaller manufacturers doing business in the US. Scroll down below for all the details from Consumer Reports, if you're so inclined.