In the supposedly free-market capitalist haven known as
Virginia, free competition is supposed to be alive and well, except if you run
up against powerful
and embedded special interests. Such is the case with Tesla Motors, the
automobile manufacturer and dealer who has quietly (or not so quietly for car
enthusiasts) revolutionized electrically motorized vehicles.
In April, Tesla Motors’ request to open a dealership in
Virginia was turned down by the state Department of Motor Vehicles (DMV).
According to Virginia law, auto makers are prohibited from being auto dealers
in the state. However, 14 exceptions have been made to the law for
manufacturers of specialty trailers, trucks, and motorcycles since 1998. A Tesla
automobile could certainly be categorized as a “specialty” vehicle.
The DMV’s ruling against Tesla Motors was also made despite
two recommendations that Tesla be allowed to open a dealership in Virginia
under a legal exception when no dealers are available to sell its product. So much
for the legal argument made for keeping Telsa Motors from selling its
automobiles in Virginia.
A more insidious argument has been made by the Virginia Automobile Dealers Association (VADA),
a special interest group for “franchised new car and truck dealers in the
Commonwealth of Virginia,” or car and truck dealers who stand to lose business
if Tesla Motors gains a foothold in the state.
According to VADA’s president, Don Hall, the association
doesn’t oppose Tesla’s entry into Virginia’s family of dealerships, "I
just want to make sure we don't overlook protections because of the excitement
of something new." In polita-speak, VADA wants to put up clever barriers
to Tesla’s entry into Virginia’s automobile market.
While VADA’s president claims that it is open to the idea of
allowing Tesla Motor’s sell its automobiles in Virginia, it would seem
counterintuitive since some, if not all, of VADA’s members stand to lose due to
Tesla’s entry. Put another way, Mr. Hall is, in all likelihood, lying through
his teeth.
Tesla Motors represents more than just a dealer and
manufacturer of “high performance” electric vehicles, Tesla represents the
lingering spirit of revolutionizing automobile innovation that auto manufacturers in the
U.S. have long since abandoned. If Virginia fails to embrace companies like
Tesla, either now or in the future, the state will undermine its image as a
haven of free market capitalism. Instead, Virginia may well become a special
interest manhole where the concept of innovation is just another chapter in
Virginia’s history books.
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