Tesla not welcome in North Carolina?

Hi folks -- thanks to former student Jesse Grewal for calling this article to my attention.


From the state that brought you the nation’s first ban on climate science comes another legislative gem: a bill that would prohibit automakers from selling their cars in the state.

The proposal, which the Raleigh News & Observer reports was unanimously approved by the state’s Senate Commerce Committee on Thursday, would apply to all car manufacturers, but the intended target is clear. It’s aimed at Tesla, the only U.S. automaker whose business model relies on selling cars directly to consumers, rather than through a network of third-party dealerships.

The bill is being pushed by the North Carolina Automobile Dealers Association, a trade group representing the state’s franchised dealerships. Its sponsor is state Sen. Tom Apodaca, a Republican from Henderson, who has said the goal is to prevent unfair competition between manufacturers and dealers. What makes it “unfair competition” as opposed to plain-old “competition”—something Republicans are typically inclined to favor—is not entirely clear. After all, North Carolina doesn’t seem to have a problem with Apple selling its computers online or via its own Apple Stores.

Still, it’s easy to understand why some car dealers might feel a little threatened: Tesla’s Model S outsold the Mercedes S-Class, BMW 7 Series, and Audi A8 last quarter without any help from them. If its business model were to catch on, consumers might find that they don’t need the middle-men as much as they thought.

Incidentally—not that he would be in any way swayed by this—I couldn’t help but notice that Apodaca received $8,000 in campaign contributions from the North Carolina Automobile Dealers Association last year, the maximum amount allowed by state law. I’ve reached out to the senator for further comment and will update this post if he replies.

Tesla’s vice president of corporate and business development, Diarmuid O'Connell, told me he’s hopeful that the state legislature will amend the bill so that it doesn’t prohibit Tesla from doing business there. He said the company has already sold 80 cars in North Carolina, mostly through the Web, and has about 60 more orders in the works. It also has plans to build its first showroom in the state next year. The Raleigh-Durham Research Triangle in particular appears to be a hotbed of Tesla interest, O'Connell said, which makes sense given its similarities to Silicon Valley.

In its current form, North Carolina’s bill would be the harshest of a handful of anti-Tesla regulations around the country. In Texas, the company is fighting a law under which the employees of its “showroom” in Austin are not allowed to sell any vehicles, offer test drives, or even tell customers how much the car costs. But at least Texas still lets people buy the car online, which North Carolina’s law would prohibit.

Tesla’s O’Connell rejects the idea that laws prohibiting automakers from selling their cars are designed to protect consumers, as trade groups like the North Carolina dealers’ association claim. He says the franchise-dealer model might work fine for giant automakers, but not for a startup like Tesla—especially since Tesla’s products represent a challenge to the traditional auto industry on which dealerships rely. “How do you sell the future if your business depends on the present?” he asked.

Robert Glaser, president of the dealers association, told the News & Observer that the law prohibiting Tesla sales isn’t just about his industry’s self-interest. Pointing to the Tesla representatives at a recent hearing, he said, “You tell me they’re gonna support the little leagues and the YMCA?”

If that’s the real issue, then I may have some good news for all concerned: I asked O’Connell, and he assured me Tesla would be happy to support the little leagues and the YMCA if that’s what North Carolina requires in order to do business there. Problem solved! Right, Mr. Glaser?

H/T Techdirt.

Moms and Cars -- Happy Mother's Day!

Hi folks -- Above are a few images that reflect mothers and the auto today.  With all the technologies to assist in household work, what has really happened is now there is more work for mother. Yet, the car or minivan is the only lace in which she can be alone at times, a private space for quiet time after dropping off the kids at soccer or dance.

My mother never did drive a car.  She did try to learn to drive during the early 1950s, but gave up after failing a driver's test in which she wedged the car between a tree and fire hydrant (true story). With the exasperated examiner next to hear in the front seat, she ended up pulling the shift knob off the stalk and handed to the tester, saying "now here you drive!"

Cars and Golden Retrievers

OK, how could I do a blog post on cats and forget about my two favorite grand-dogs, Ralph and Ed. Especially Ralph, who is one of the only living things on the planet that loves me! He will sit in my lap, stay by the door of the bedroom when I sleep at Lisa's house in Escondido, CA, and follow me endlessly. He and Ed have such big hearts (as well as big bodies), and I do miss them.  So here, for Ralph and Ed, are a few golden retriever and car photos!

Cats and Cars

Hi folks -- enjoying our cat "Blackie" the other day got me thinking about cats and cars. There was the time we took our evil black cat Dixie for a ride and trip to a waterfall where she promptly clawed the hell out of  Kaye. Then there was our cat Yellowbole who pissed on the floor of my 1969 Karmann Ghia repeatedly because I left the window open at night, undoubtedly causing the floorboard to rot out, which I found out while driving through a rain storm on I-10 in New Orleans. In New Orleans we had a litter of kittens that went by the name Eeny, Meeney, Moe, Jack and Bingo. One of the black ones- we'll call him Moe -- hid in the wheel well of our Ford Pinto, traveled with Kaye across the Mississippi River Bridge to Tulane Med School, waited for her all day, then was run over after she left. A few years ago my prize cat Bonnie sneaked into grandma's garage and crapped in the seat of my Porsche!  Here are a few cat photos for your enjoyment.

Hybrid Cars -- recent news reflects a mixed message right now

Hi folks -- Right before exams I received an interesting forwarded article from one of my students.  Written by Paul A. Eisenstein from NBC's Detroit Bureau, a number of important issues emerged.

For example:
1) there is an issue of consumer loyalty related to hybrid vehicles.  Only about 1 in 3 hybrid owners by another gas electric model when they trade in.

2) "Pricing and range limitations remain critical factors."  Expectations are high, demand is far lower.

3) Manufacturer's claims do not match what owners are actually getting! The EPA is now getting involved in revising rating processes.

For those interested, consumers who financed these cars purchased them in the following order:

1. Toyota prius -- 37.2%
2. Toyota Camry -- 8.9%
3. Toyota Prius V -- 8.6%
4. Toyota Prius C -- 8.1 %
5. Chevy Volt -- 6.3%
6. Hyundai Sonata -- 4.8%
7. Lexus CT 200h -- 4.2%
8. Kia Optima -- 2.7%
9. Nissan Leaf -- 2.7%
Lexus RX450h -- 2.3 %

So far the Asians are leading the race, it seems.

Cars that are the focus of films: "Iron Man 3," "The Wolverine," and "Fast and Furious 6."

 Audi R8 spyder

Ducati Diavel

When Tony Stark isn't suited up in metal saving the world, the self-described genius billionaire playboy philanthropist zips around town in the all-electric Audi e-tron.

At least he does on screen, in "Iron Man 3," in an early kickoff to a summer blockbuster season that will see hundreds of speeding, squealing, exploding, airborne, rolling and smoking vehicles in dozens of high-adrenaline films.

Chloe Moretz's Hit-Girl won't just don a purple cape in "Kick-Ass 2," she'll do so on a color-matched Ducati Panigale. When Hugh Jackman's Wolverine travels to Japan for some superhero soul searching, he's whisked through the streets of Tokyo in an Audi A8 Spyder. Then there's Roman, played by Tyrese Gibson, who jumps from a Ford Mustang moments before it's crushed by the tracks of a tank in the sixth installment of the supercharged franchise "Fast & Furious."

"Every one of these movies, the action gets bigger, the story gets better and we wreck a lot more stuff," said Dennis McCarthy, car coordinator for "Fast & Furious 6," which alone features more than 300 vehicles.

Yes, that's a three with two zeros — including 10 Dodge Charger SRT8s, nine Ford Mustangs and a smattering of Aston Martin DB9s and Range Rovers, few of which survived filming.

Most of the vintage muscle cars favored by Dom (Vin Diesel) were sourced "like everyone else," McCarthy said, through Craigslist, eBay, AutoTrader and swap meets. The Dodge SRT8s and Ram trucks were provided courtesy of the manufacturer, as was the Ducati Monster 1100 ridden by Gisele (Gal Gadot) and the Harley-Davidson XR1200X that was customized into a flat tracker and flogged by Han (Sung Kang) on camera. The Harley now sits in director Justin Lin's office.

As summer films become more explosive and action-oriented, so too are the cars and bikes that are featured. But as much as vehicles add a level of excitement and engagement to filmgoers' experience, viewers are increasingly sophisticated. It's no longer acceptable just to place the most current or desirable product. The cars have to be true to character.

"For me, the biggest focus with putting vehicles in the movie is to make them work for the movie and not seem like product placement," said James Mangold, director of the upcoming Marvel film "The Wolverine," starring Hugh Jackman and, briefly, a Ducati Diavel and Audi R8 Spyder.

Most of the riding and driving is done by a female character named Yukio who nicks vehicles from her wealthy boss and uses them to perform "hard stops, hard pull-ins, and pulling in to tiny spaces at high speed," said Mangold. "But we're the movie about a guy with claws, so the real action in our film is more hand-to-hand and physical."

Despite the limited screen time, the Ducati Diavel and "The Wolverine" are a "perfect fit," said Stefano Sbettega, marketing and communications director for Ducati North America in Cupertino, Calif. "It's a fantastic combination of what the motorcycle represents and the Wolverine, who is somehow devilish and has a huge following all over the world."

The devil, or Diavel, has been on the market two years but is getting the film treatment for the first time through "The Wolverine," in which it will be ridden by Hugh Jackman (a motorcyclist in real life) as well as the Yukio character, Sbettega said. The other two films in which Ducati bikes will race across the big screen this summer also feature women riders — in "Fast & Furious 6" and "Kick-Ass 2."

"It's not something we planned," Sbettega said. "But we're certainly happy it's coming up. It's good to let the female audience see and understand that motorcycles are not just toys for boys."

Just as the films are fantasies, so too is the idea of ownership. Placing vehicles in a high-profile movie promotes a fantasy that marketers hope will translate into sales.

"Three percent of the population has a license to motorcycle in this country, so the upside is significant to put motorcycling on the map," said Dino Bernacchi, current marketing director of Harley-Davidson Motor Co. in Milwaukee, Wis., and former branded entertainment director for General Motors. "When you see a cool scene with a cool person riding a motorcycle, it starts to seed that desire."

From The Detroit News: http://www.detroitnews.com/article/20130505/AUTO01/305050304#ixzz2SQ2CHNLK

Friday Night Cruise-In I: Beavercreek, Ohio, May 2, 2013

 I got there early and didn't stay long. First one I have gone to this year and it seemed sort of dead. Plenty of old men wearing baseball caps around, and a number of shrivel-faced wives.  The occasional nice looking younger chick, but not many of them. A number of small groups sitting around in lawn chairs, but little energy. I drove the 380Sl and parked behind a 560 SL that Larry Dobbins had recently purchased sight unseen from the internet and a buyer in Dallas. He got a great deal, but we will see how it turns out in the longer run. Just before I left some old guy and his pudgy wife parked next to me in a brand new Mercedes biturbo AMG. Why bring that car to this gathering?

 Maybe the best car at the cruise-in, but tucked away around a corner of th old Eastgate Ford.

 A 1967 Corvette -- nice, but there are so many of these cars.

A Ford rod in flat black.