Coming off the recent ruling by the New Jersey Motor Vehicle Commission to deny Tesla Motors the right to sell factory-direct autos in the state, GoMoto has announced its plan to open a center in Cherry Hill, NJ. This will be GoMoto’s second vehicle test driving center, both inside shopping malls in New Jersey. The opening of this new center has sparked some resistance from various manufacturers who claim that GoMoto is violating franchise agreements. Todd Marcell, GoMoto’s CEO, however, chose New Jersey as the start up site based on the belief that the Motor Vehicle Commission’s recent ruling will provide some protection for his company.
Marcell argues that GoMoto is interested in working with and helping the dealer franchises, not competing with them. The overall business plan of GoMoto is to entice potential customers to try out and drive new vehicles from competing dealers at a more comfortable and convenient place than car showrooms, the malls. GoMoto would then send these potential customers to the respective partnered dealers. While manufacturers, are arguing that GoMoto resembles a vehicle sales outlet, Marcell clarifies that GoMoto is not selling cars, rather they are linking interested customers with the correct dealer.
Is there room in the market for GoMoto to help, rather than hurt the dealer franchises? Will the change of location make customers more willing to try out new vehicles? The ten dealer groups and eighteen brands that have partnered with GoMoto at their new Cherry Hill center seem to think so. We shall see if GoMoto will soon be able to make the leap out of New Jersey to spread across the country.