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Tesla has been fighting in various states to allow for direct sales of their vehicles. The most contentious being the state of Michigan which enacted a law in October 2014 banning automakers from selling vehicles directly to consumers. Tesla has been working hard to try and change the law by offering test drives and education to legislators, to no avail. Even the Federal Trade Commission has called on the state to rethink this law. But Michigan is sticking to its guns. So Tesla decided to do the unexpected, apply for a Michigan dealer license. The Detroit News reports the California electric vehicle builder submitted applications in November to the Michigan Secretary of State Office for a dealer license. Recently, Tesla sent in follow-up information to the office. Secretary of State spokesman Fred Woodham tells the News that Tesla is applying for a 'Class A' dealership license, which allows it to sell new and used vehicles. The license requires the dealer to have a “repair facility as part of their business or have an established relationship with a licensed repair facility.” Woodham went on to explain the office is currently reviewing the paperwork and will have a decision in the next month or so. It is unclear who submitted the documents to the Secretary of State. Michigan Information & Research Service Inc., a news service based in Michigan's capital - Lansing - first reported the story. The service said Tesla could contract anyone - aside from itself - to set up a dealer. Tesla could even send a former employee to open a dealer where “in which it mandates the dealership look, act and do business exactly as the Tesla-run stores.” A Tesla spokesman tells AutoblogGreen, "As recently amended, current Michigan law prohibits Tesla from being able to license its own sales and service operations in the state. Submission of the application is intended to seek the Secretary of State's confirmation of this prohibition. Once confirmed, Tesla will review any options available to the Company to overturn this anti-consumer law." Along with Tesla's application, a 22-year old graduate of the University of Michigan has launched a petition to repeal the direct sales ban. Mick Yuille has formed a ballot committee called Eliminate (i) to force the Michigan legislature to act. If they don't, his proposal will go on the ballot for the people to decide. Yuille needs 252,000 signatures by June 1st for this happen. Source: The Detroit News, AutoblogGreen, Crain's Detroit Business View full article -
Tesla Decides Its Time To Apply For A Dealer License In Michigan
William Maley posted an article in Tesla
Tesla has been fighting in various states to allow for direct sales of their vehicles. The most contentious being the state of Michigan which enacted a law in October 2014 banning automakers from selling vehicles directly to consumers. Tesla has been working hard to try and change the law by offering test drives and education to legislators, to no avail. Even the Federal Trade Commission has called on the state to rethink this law. But Michigan is sticking to its guns. So Tesla decided to do the unexpected, apply for a Michigan dealer license. The Detroit News reports the California electric vehicle builder submitted applications in November to the Michigan Secretary of State Office for a dealer license. Recently, Tesla sent in follow-up information to the office. Secretary of State spokesman Fred Woodham tells the News that Tesla is applying for a 'Class A' dealership license, which allows it to sell new and used vehicles. The license requires the dealer to have a “repair facility as part of their business or have an established relationship with a licensed repair facility.” Woodham went on to explain the office is currently reviewing the paperwork and will have a decision in the next month or so. It is unclear who submitted the documents to the Secretary of State. Michigan Information & Research Service Inc., a news service based in Michigan's capital - Lansing - first reported the story. The service said Tesla could contract anyone - aside from itself - to set up a dealer. Tesla could even send a former employee to open a dealer where “in which it mandates the dealership look, act and do business exactly as the Tesla-run stores.” A Tesla spokesman tells AutoblogGreen, "As recently amended, current Michigan law prohibits Tesla from being able to license its own sales and service operations in the state. Submission of the application is intended to seek the Secretary of State's confirmation of this prohibition. Once confirmed, Tesla will review any options available to the Company to overturn this anti-consumer law." Along with Tesla's application, a 22-year old graduate of the University of Michigan has launched a petition to repeal the direct sales ban. Mick Yuille has formed a ballot committee called Eliminate (i) to force the Michigan legislature to act. If they don't, his proposal will go on the ballot for the people to decide. Yuille needs 252,000 signatures by June 1st for this happen. Source: The Detroit News, AutoblogGreen, Crain's Detroit Business -
Lone Star State lawmakers have reined in Tesla's hopes of selling to Texans. Two bills allowing the Palo Alto-based electric carmaker to open Tesla Store's have died in the state legislature, in the face of dealership opposition. Tesla's direct-sales approach has raised the ire of dealership associations nationwide, who worry this jeopardizes their decades-old sales model based on franchise laws. Similar laws are on the books in states such as Michigan, Arizona, West Virginia, and until recently, New Jersey. Tesla founder and CEO Elon Musk reportedly hired up to 20 lobbyists in Texas and made $150,000 in campaign contributions. Despite support from former governor Rick Perry, the bills were unable to overcome Texas' powerful dealership lobby, whose support of franchise laws in a state priding itself as a bastion of free-maket economics and limited red tape was deemed "very un-Texan" by Musk in a 2014 interview. The Texas Auto Dealers Association has spent over $278,000 lobbying against Tesla, with some individual dealership owners and groups contributing hundreds of thousands more. Texas is home to the country's second largest high-tech workforce and is the U.S.' largest technology manufacturing exporter. Tesla's absence among the likes of industry pioneers such as Dell and Texas Instruments is notable. The state competed for the brand's 'Gigafactory' but lost to Nevada. The state's legislature holds bi-yearly sessions, meaning Tesla will need to wait until 2017 for similar bills to be introduced, just in time for the Model 3's debut. Source: The Verge View attachment: Model_S_Press_WEB.jpg View full article
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Lone Star State lawmakers have reined in Tesla's hopes of selling to Texans. Two bills allowing the Palo Alto-based electric carmaker to open Tesla Store's have died in the state legislature, in the face of dealership opposition. Tesla's direct-sales approach has raised the ire of dealership associations nationwide, who worry this jeopardizes their decades-old sales model based on franchise laws. Similar laws are on the books in states such as Michigan, Arizona, West Virginia, and until recently, New Jersey. Tesla founder and CEO Elon Musk reportedly hired up to 20 lobbyists in Texas and made $150,000 in campaign contributions. Despite support from former governor Rick Perry, the bills were unable to overcome Texas' powerful dealership lobby, whose support of franchise laws in a state priding itself as a bastion of free-maket economics and limited red tape was deemed "very un-Texan" by Musk in a 2014 interview. The Texas Auto Dealers Association has spent over $278,000 lobbying against Tesla, with some individual dealership owners and groups contributing hundreds of thousands more. Texas is home to the country's second largest high-tech workforce and is the U.S.' largest technology manufacturing exporter. Tesla's absence among the likes of industry pioneers such as Dell and Texas Instruments is notable. The state competed for the brand's 'Gigafactory' but lost to Nevada. The state's legislature holds bi-yearly sessions, meaning Tesla will need to wait until 2017 for similar bills to be introduced, just in time for the Model 3's debut. Source: The Verge View attachment: Model_S_Press_WEB.jpg -
Three FTC Officials Call For End To The Anti-Tesla Store Laws
William Maley posted an article in Tesla
In a surprising move today, three top officials from the Federal Trade Commission have come out against the laws that ban automakers like Tesla from selling their vehicles directly to consumers. Andrew Gavil, director of the FTC's Office of Policy Planning; Deborah Feinstein, director of the Bureau of Competition; and Martin Gaynor, director of the Bureau of Economics wrote in a blog piece on the FTC site that states the dealer franchise laws are a 'bad idea' since it doesn't allow consumers to shop in new ways. "For decades, local laws in many states have required consumers to purchase their cars solely from local, independent auto dealers," the three said in the post. "Removing these regulatory impediments may be essential to allow consumers access to new ways of shopping that have become available in many other industries." Dealers argue the franchise model works because they compete on price and offer long-term service. However, direct sales offer a threat and could cause other manufacturers to go down the same road. Dealers have turned to lobbyists to sue Tesla in court and urge state representatives to tighten dealer laws. This has only angered the public and legislators from both parties. "How manufacturers choose to supply their products and services to consumers is just as much a function of competition as what they sell--and competition ultimately provides the best protections for consumers and the best chances for new businesses to develop and succeed," the three stated in the piece. "Our point has not been that new methods of sale are necessarily superior to the traditional methods--just that the determination should be made through the competitive process." Now it should be noted that the posting is of the authors and not the FTC. Source: Reuters, FTC William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
In a surprising move today, three top officials from the Federal Trade Commission have come out against the laws that ban automakers like Tesla from selling their vehicles directly to consumers. Andrew Gavil, director of the FTC's Office of Policy Planning; Deborah Feinstein, director of the Bureau of Competition; and Martin Gaynor, director of the Bureau of Economics wrote in a blog piece on the FTC site that states the dealer franchise laws are a 'bad idea' since it doesn't allow consumers to shop in new ways. "For decades, local laws in many states have required consumers to purchase their cars solely from local, independent auto dealers," the three said in the post. "Removing these regulatory impediments may be essential to allow consumers access to new ways of shopping that have become available in many other industries." Dealers argue the franchise model works because they compete on price and offer long-term service. However, direct sales offer a threat and could cause other manufacturers to go down the same road. Dealers have turned to lobbyists to sue Tesla in court and urge state representatives to tighten dealer laws. This has only angered the public and legislators from both parties. "How manufacturers choose to supply their products and services to consumers is just as much a function of competition as what they sell--and competition ultimately provides the best protections for consumers and the best chances for new businesses to develop and succeed," the three stated in the piece. "Our point has not been that new methods of sale are necessarily superior to the traditional methods--just that the determination should be made through the competitive process." Now it should be noted that the posting is of the authors and not the FTC. Source: Reuters, FTC William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
