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FTC staff comes out in favor of Tesla, direct vehicle sales

On the subject of Tesla Motors and its efforts to legally sell its electric vehicles directly to consumers without franchised dealerships, the FTC has taken aim at Missouri and New Jersey. The Commission hasn't made any nationwide decision on the subject quite yet, but in a May 16 statement it encouraged the two states to reconsider policies that would further prohibit automakers from selling directly to consumers. And the FTC didn't mince words, calling such laws an example of "protection that is likely harming both competition and consumers." This is much further than the FTC has ever gone before in support of direct vehicle sales. FTC didn't mince words, saying such laws were "likely harming both competition and consumers." The statement follows an April blog post from three FTC officials, who wrote that the anti-direct sales mandates were "protectionist" and "bad policy." Tesla has been doing battle with a number of states as well as lobbying efforts from the National Automobile Dealers Association (NADA), which represents 16,000 new car and truck dealerships representing about 32,000 domestic and international franchises. The NADA has been supporting dealers who oppose Tesla's direct sales for years. In fact, Jonathan Collegio, vice president of public affairs for the National Automobile Dealers Association (NADA), maintained that the states need to retain the right to regulate the automobile sales distribution channel. "These arguments ignore the fact that fierce competition between local dealers drives down prices both within and across brands. When three Ford dealers compete for the same customer, the customer wins, period," Collegio wrote in an e-mail to AutoblogGreen. "Finally, it's a major fallacy to compare buying cars with buying other goods, like books or computers. New cars are major purchases that require licensing, insurance, complex financing involving trade-ins, contain hazardous materials, and if operated incorrectly can cause serious bodily injury." Tesla representatives didn't immediately respond to a request for comment from AutoblogGreen. New Jersey and Missouri have both been in the news lately. Garden State politicos have created a bit of a grey area, first voting in mid-March to stop Tesla stores from selling cars starting April 1, then extending the deadline to April 15.

Tesla halts production to prep for Model X

That darling of the electric car world, Tesla, is idling production at its factory in Fremont, CA, for the first time in order to expand the factory in preparation for its future Model X crossover. The $100-million renovation will add 25 robots and upgrades to the body shop and assembly line to support the new vehicle.
Since it will be offering two models simultaneously, Tesla will need to be able to keep up with the pace of demand. "This represents the single biggest investment in the plant since we really started operations and enables us for higher volumes," said Tesla spokesperson Simon Sproule to Bloomberg. The new robots will be able to boost production by 25 percent and will allow the automaker to build the Model S and Model X on the same assembly line. There won't be too much downtime at the California plant, though. The upgrades will be finished within the next two weeks.
With these factory updates, the Model X may finally get its electrically powered wheels on the road. The CUV has been delayed multiple times since its announcement. It was originally supposed to be on sale in early 2014, then later in the year, but now the latest news from Elon Musk places the crossover's launch in the second quarter of 2015.

Recharge Wrap-up: Child Tesla driver hits baby in Chinese mall, Ram adds new CNG offering

A five-year-old child in a China shopping mall started a Tesla Model S at a display and hit a baby in a stroller. The baby fell out of the stroller and was unhurt, according to the report. A reporter from a local newspaper arrived at the scene to find the other Model S on display still powered on, this one with another child in the driver's seat. The cars had wooden blocks under the brake pedals and stickers warning the public not to touch the touchscreen. Police have opened an investigation into the incident. Read more and see all the photos at Car News China. Ram will add a new compressed natural gas pickup truck to its lineup. The new offering, which is smaller and less expensive than the current CNG pickup (pictured), will be available as a regular cab two-door with two-wheel drive and a long bed. Ram has sold 1,000 of the current 2500 CNG four-door 4x4 offering since going on sale in 2012. Ram believes the new offering will expand sales to fleet operators looking for a less-expensive truck. Read more at Automotive News. New methods of harvesting energy are being explored for automobiles. By now we're all familiar with regenerative braking, but thermoelectric harvesting from the motor, range extender or possibly even the exhaust could come to cars soon. Energy harvesting shock absorbers and exhaust turbines are also viable. Wind turbines could generate electricity while the car is parked, and piezoelectric energy harvesting could run minor electrical systems while the car is in motion. Enough energy harvesting could allow cars to use much smaller engines, and could extend the range of electric vehicles. Read more at Energy Harvesting Journal.