September 2021 Southeast Edition

Page 12

Tesla’s War Against Direct Sales Continues with Big Win in Virginia by Joey Klender, Teslarati

Tesla’s war with laws that prohibit the direct sale of cars to consumers continues, but the automaker is making progress across the U.S. The Virginia Department of Motor Vehicles has approved Tesla to sell its cars and will open three new locations in the state. July 27, Virginia DMV Commissioner Richard Holcomb stated Tesla is now eligible to open the three sales locations in the state. This decision goes against the wishes of the Virginia Automobiles Dealers Association (VADA), which will not plan a legal challenge. Holcomb decided to grant Tesla permission to open the stores based on public opinion. Prominent officials and members of the general public expressed support for Tesla stores in the regions of Charlottesville, Arlington and Norfolk. “Much of that support revolves around the fact that Tesla’s business model is unique and outside the traditional model of motor vehicle dealerships in Virginia,” he said in the decision.

However, the CEO of the VADA, Don Hall, said the decision was an “easy way out,” according to the Richmond Times-Dispatch.

Tesla showroom in Century City mall, Los Angeles. Credit: Teslarati

“The decision frankly was not in compliance with the laws of Virginia,” Hall stated. “It was an easy way out. I don’t believe the DMV in any way, shape or form carried out its responsibility.” Tesla will still need to obtain a license issued by the Motor Vehicle Dealer Board to have permission to operate as a car sales entity. The three stores have not had their locations finalized, the company said. State laws in Virginia indicate automobile manufacturers must sell their vehicles through independent franchised dealerships, except when there is no dealership available in a

Hyundai Motor Manufacturing Alabama Builds its 5 Millionth Vehicle Hyundai Motor Manufacturing Alabama (HMMA) leadership, team members and special guests on Aug. 12 celebrated the 5 millionth vehicle built at Hyundai’s U.S. assembly plant. HMMA reached the 5 million mark in less than 17 years, starting production in May 2005.

The 5 millionth vehicle was a Hyundai Santa Cruz Sport Adventure Vehicle built July 27. To reach this achievement, HMMA has produced 2,562,880 Sonatas, 1,489,568 Elantras, 908,779 Santa Fes, 36,989 Tucsons and 1,784 Santa Cruzes. “The 5 millionth vehicle represents a tremendous achievement for Hyundai Motor North America,” said José Muñoz, global COO of

Hyundai Motor Company and president and CEO of Hyundai Motor North America. “We could not have achieved this success without the strong leadership and commitment of our team members in Alabama. Hyundai will continue to invest and grow throughout the region.” “Reaching today’s milestone in HMMA’s storied history in Alabama would not have been possible without the energy and enthusiasm of our valued team members, the dependability of our supplier network and unwavering support of state and local governments,” said HMMA President and CEO Ernie Kim. HMMA recently completed a plant expansion to support the addition of its fourth and fifth models, the Tucson and Santa Cruz, that joined Sonata, Elantra and Santa Fe. The addition of these models further enhances HMMA’s ability to adjust its vehicle production with market demand. Source: Hyundai Motor North America

10 SEPTEMBER 2021 AUTOBODY NEWS / autobodynews.com

community to offer a company’s vehicles “in a matter consistent with the public interest,” the report said. However, with the emergence of EV manufacturers that have opted to veer away from the traditional dealership and car sales model, which is highly unfavorable and disliked by car buyers, states are turning to support the potential of direct-to-consumer sales. Tesla currently operates three stores in Virginia: two in the state’s northern portion and one in eastern Virginia near Richmond. The Tyson’s Corner showroom, one of the northern locations, was granted a license in 2016. Holcomb also granted Tesla this license. In 2016, Tesla opened the Richmond store under the pretense the automaker had the same prices in-store as it did online. Tesla has worked toward legal direct sales in states like New Mexico, Arizona, Louisiana, Connecticut, Wyoming and Indiana in recent memory. The direction the company is moving in with this issue brings additional confidence to other automakers like Lucid and Rivian, which are also battling the sales ban in various states.

Continued from Cover

Drug Dealer-Owned Hellcat tion and drug abuse. It may seem a little ridiculous to think of a Hellcat as a cop car, especially since they are usually used for the exact opposite. However, the sheriff still makes regular patrols and even takes it out for community outreach. Unfortunately, the red key, which unlocks the 707 horsepower, is in a secret location known only by the sheriff and a select few others. However, the 500 horsepower is surely enough for the department’s uses.

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