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EV buyers not exactly happy with dealership experience

If Tesla Motors chief Elon Musk was an I-told-you-so type of guy, here's his chance to do so. It turns out that plug-in vehicle buyers are generally less satisfied with their dealership experience than conventional-vehicle buyers. And the dealers themselves don't like the process much, either. So says a study from the University of California, Davis. The report cited 43 interviews with automakers and dealers that sell in California as well as the JD Power 2013 Sales Satisfaction Index. The study found customer-satisfaction scores to be "much lower" for plug-in vehicle buyers than others. Maybe that's because the dealers themselves are less patient and find that selling plug-ins are more time-consuming, labor-intensive and stressful. And that's just getting the car out the door. More complications arise when dealing with the federal tax incentives issue. Of course, Tesla scored well, relative to the other dealerships. And all that gives more credence to the company's insistence on selling its vehicles directly to customers and without a third-party dealership network. Representatives of some of these dealership groups have been lobbying against the prospect of Tesla getting direct-sales rights. Michigan is the latest battleground between Tesla and pro-dealership entities. See below for an abstract on the UC Davis report and then read more here. New Car Dealers and Retail Innovation in California's Plug-In Electric Vehicle Market Abstract: Innovative new products like plug-in electric vehicles may need new approaches to market and sell them. We conducted 43 interviews with automakers and dealers selling plug-in vehicles in California's major metro markets and analyzed data on customer satisfaction with new car dealers and Tesla stores. Initial findings revealed: • Plug-in vehicle buyers rated the dealer purchase experience much lower than conventional vehicle buyers while Tesla earned industry-high scores; • Plug-in vehicles returned higher gross profits but place greater demands on dealers, including the provision of support services beyond traditional offerings; • New retail approaches undertaken by 'dealer innovators', including new methods for building and scaling dealer competence, could improve the PEV buying experience; an • Public incentives could better align with established dealer practices and business drivers to improve program effectiveness.

New Jersey votes to allow direct Tesla sales

It's not quite the law that Tesla Motors can sell its car directly to customers in New Jersey, but the state has taken one step closer to that reality. Yesterday, New Jersey's Assembly Consumer Affairs Committee voted 4-0 to approve bill A3216, which would "Permits certain zero emission vehicle manufacturers to directly sell motor vehicles to consumers and requires them to operate service facilities." The EV automaker's ongoing dealer fight took a turn for the worse in New Jersey a few months ago, when the state legislature voted in mid-March to prevent Tesla stores from conducting their business. Tesla had been selling cars in the sate, but Governor Chris Christie said the ban was just an enforcement of a law that had been on the books for years, something Tesla said was an "affront to the very concept of a free market." If A3216 becomes law, then electric vehicle makers would be able to operate "no more than four places of business in the State" as well as one service center. The bill will let Tesla "conduct the business of educating the public about electric vehicles" – Diarmuid O'Connell Speaking to the committee, Tesla's vice president of business development, Diarmuid O'Connell, said, "This is a super important issue for us in New Jersey, and as some of you would know, nationally as well. ... [The bill would] allow us to in a modest way and a reasonable way conduct the business of educating the public about electric vehicles and getting as many of those vehicles on the road as quickly as possible." Speaking for the New Jersey Coalition of Automotive Retailers, president Jim Appleton said that this solution is fine for start-up EV automakers, but that the franchise model should still be the goal for anyone selling cars. This fight isn't nationwide yet, but the FTC has come out against what it called "protectionist" anti-direct sales mandates, so we expect to be hearing more as time goes by.

Tesla talking about first European factory, but it won't happen soon

Tesla Motors is, as always, thinking big. The company already has a factory in California with a lot of empty space. But with Model S deliveries happening in Europe and a right-hand drive version just launched in the UK, CEO Elon Musk is already talking about building EVs in Europe. We did some math and let's just say we think any such facility is likely a long way off. The California-based company plans on eventually building a factory in Europe, Automotive News Europe says, citing an interview with Musk. But Musk says Tesla would have to sell 160,000 vehicles a year in Europe to justify such a factory. Musk sees that many sales as a given, eventually, and is planning on building an R&D center in the UK within the next two years while expanding its assembly factory in the Netherlands. "It will take Tesla a bit longer to ramp up in Western Europe than in the US" – Ed Kim But just how long might it take to get to that 160,000 figure across the Pond? Well, through the first four months of the year, Tesla sold 3,467 units of its Model S electric sedans in Europe, Automotive News says, citing research firm JATO Dynamics. Extrapolating from Tesla's first-quarter 2014 delivery numbers (the company doesn't publish monthly sales totals), Tesla sold about 8,600 Model S sedans worldwide through April. Even if Tesla speeds things up in Europe this year and approaches, say, 15,000 units, that's still less than 10 percent of Musk's goal. Even with new models, 15,000 is a long way from 160,000, and it appears that Tesla will grow slower in Europe than it has in the US. "It will take Tesla a bit longer to ramp up in Western Europe than in the US," Ed Kim, vice president of industry analysis at AutoPacific, told AutoblogGreen. "This is partially due to infrastructure issues. In the US, most potential Tesla customers live in detached single family homes, making installation of a personal charging infrastructure at home a snap. In Western Europe, many potential customers – even affluent ones – live in communal living situations like condos and apartments. And even having assigned parking does not guarantee that they would be able to install chargers there." Earlier this year, Tesla dropped the prices of its Model S in Europe because of the strengthening of the Euro. The company initially priced the Model S in the UK at almost $20,000 above the US base price.