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Tesla Motors is facing quite a storm this month. The legitimacy of its factory outlets (mostly in shopping malls) came into question, and now dealer associations in Massachusetts and New York are suing the electric car manufacturer for operating illegal stores.

According to the National Automobile Dealers Association, 48 states prohibit or restrict factory ownership of dealerships. Tesla argues that its locations serve only as showrooms and that shoppers must still go to its website to purchase a car.

Dealer associations don't agree, claiming that Tesla is bypassing the dealer system to save money and sell vehicles at a lower price.

"They claim they're operating under the guise of a non-sales showroom, and we call that out as an outright scam," said Robert O'Koniewski, executive vice president of the Massachusetts association.

He believes that the Massachusetts store, which opened on September 28th, violates the state's licensing, consumer protection and franchise laws. In his opinion, Tesla's business model could leave consumers unprotected by the state's lemon law, which forces automakers to buy back or replace a vehicle that can't be repaired.

We'll keep you updated as new developments arise.

Source: Automotive News

Photo: Sébastien D'Amour

Dale Earnhardt Jr. will be back in his #88 Chevrolet for this weekend's NASCAR Sprint Cup race according to his Hendrick Motorsports team.

The son of the late, seven-time, NASCAR champion suffered a concussion while testing the newly repaved track at Kansas City on August 29th.

At the time there was no medical restriction on racing so he continued to race. But, after a 25-car crash at Talladega when the symptoms of the concussion became more severe he went to see NASCAR's leading doctor, Jerry Punch.

Dale Earnhardt Jr.'s car after the crash at Talladega. (Photo: NASCAR)

After seeing the doctor Earnhardt, diagnosed with a serious concussion, missed the following two races, at Charlotte and Kansas Speedway. Regan Smith substituted for him.

According to his team “Earnhardt has participated in a rehabilitation program directed by Charlotte neurosurgeon Dr. Jerry Petty. Throughout the process, Petty consulted with Dr. Micky Collins, director of the University of Pittsburgh Medical Center Sports Medicine Concussion Program.”


“Dale Jr. has done everything asked of him,” Petty said. “He hasn't had a headache since Oct. 12, and we have not been able to provoke any symptoms since that time. I have informed NASCAR and Hendrick Motorsports that he is medically cleared for all NASCAR-related activity.”


“Earnhardt was evaluated by Collins on Oct. 16 in Pittsburgh. On Monday, Earnhardt ran 123 laps in a Sprint Cup car during a test session monitored by Petty at the half-mile Gresham Motorsports Park in Jefferson, Ga. Petty cleared the driver Tuesday morning following a final neuropsychological evaluation in Charlotte.”

On Monday Earnhardt's crew chief, Steve Letarte, tweeted "Back in Concord [N.C.] after a great day of testing with Dale Jr. Looks great and ran some awesome laps.''

Although the driver had made the Sprint Cup Chase; he was not in contention for the Championship by the end of Talledega.

We told you last week about Nissan's mysterious, genre-defining concept that was specifically designed for the Brazilian market. Today, the automaker released a couple of pictures along with a name -- Nissan Extrem.

With ultra-sporty looks and a unique Solar Cortex paint treatment, the Nissan Extrem aims to embody the vibrancy, colour and excitement of Brazil.

Available in FWD and AWD configurations, this 2+2 vehicle rides on 19'' six-spoke alloy wheels and exploits a 1.6L gasoline engine that shares its technology with the innovative Nissan DeltaWing Le Mans race car. Performance figures and other specifications remain unknown.

The Nissan Extrem will be officially introduced at the Sao Paulo Auto Show, which kicks off on Wednesday, October 24th.

Photo: Nissan

From GMM

Prodrive boss David Richards has admitted he is interested in buying F1 engine supplier Cosworth.

It emerged last week that HRT and Marussia supplier Cosworth, currently owned by well-known US racing names Gerry Forsythe and Kevin Kalkhoven, is for sale.

And former BAR and Benetton boss Richards, the majority owner of Prodrive, told the Daily Mail: "We've just started to take a look at Cosworth although I think they have rather over-priced themselves as I understand they don't own the brand and they will be out of the formula one business within 12 months.

"Nonetheless, worth a look," he added.

David Richards. (Photo: Prodrive)

Paddock rumours persist that Cosworth, having entered the aerospace and defense sectors after losing premier F1 customers Williams and Caterham, will bow out of F1 when the current V8 rules end next year.

Cosworth declined to comment on the Daily Mail report.

SiriusXM, which has equipped 50 million cars and light trucks with satellite radio service, said CEO Mel Karmazin is stepping down on February 1.

Lower supplies of BMWs pinched average new-vehicle gross profits for Sonic Automotive during the third quarter, but inventory levels are returning to normal.

Asbury Automotive Group is ready to pursue major store acquisitions with the expectation annual U.S. auto sales will recover to 16 million vehicles in 2015.

The chairman of the National Automobile Dealers Association today criticized manufacturers for "intrusion" into dealers' operations by requiring facility renovations and creating two tiers of pricing for retailers.

If youand#8217;ve ever wanted to get your hands on a World War II-era Daimler-Benz DB10 12-ton Prime mover, the Auctions America event on Dec. 8 may be your only chance.

Also in this episode: GM will roll out the new Chevy Silverado and GMC Sierra on Dec. 13, drag-racer Antron Bron

Hyundai and Kia plan to add more turbocharged gasoline engines and new transmissions to their powertrain lineups in the United States and elsewhere, Hyundai Motor Group said today.

Lotus is adding its Intelligent Precision Shift automatic transmission to the supercharged version of the Evora for the 2013 model year.

GM engineers and scientists believe they have made a big step toward the expanded use of magnesium in vehicles by heating the lightweight metal so it can be formed into precise, rigid shapes needed for auto parts.

More than half of consumers who use smartphones to research a vehicle before buying do so while at a dealership, J.D. Power's 2012 Automotive Mobile Site Study found.

Driven: 2013 Lincoln MKS

Better living through technology?

With the departure, finally, of the Town Car, the vehicle that has defined Lincoln for years, Ford's luxury brand is now in the process of building a new identity. It won't be that of a European-style luxury carmaker, as Ford won't devote the necessary resources to develop a rear-wheel-drive chassis. Instead, Lincoln will continue to adapt front-wheel-drive/all-wheel-drive Ford platforms. Other than styling -- which also is in flux, at least until the arrival of the new MKZ -- Lincoln is relying on technology to give it the premium imprimatur the brand too often has lacked.

Photo Gallery: Driven: 2013 Lincoln MKS - Automobile Magazine

Photo Gallery: Driven: 2013 Lincoln MKS - Automobile Magazine

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Former Chrysler chairman and CEO Lee Iacocca, saying 'America is in deep trouble,' is endorsing Republican presidential candidate Mitt Romney.

Valeo presented a number of major innovations at the Paris Motor Show recently. Ian Henry spoke with Patrick Sega, Transversal Projects Director for Group R&D at Valeo about some of these innovations. Here, we report on Valeo's new BiLED full LED headlamps which had their European launch in Paris.

Major Belgian trade union, ABVV Metaal, says Ford is creating a climate of "fear" ahead of tomorrow's (24 October) crunch meeting at the automaker's Genk site with the labour body bracing itself for a major restructuring announcement.

The 2012 Ford C-Max Energi plug-in hybrid will cost as little as $28,495 in California after $5,250 in tax credits available for buyers.

Ford is adding three wild pickup trucks to its SEMA lineup.