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The latest state to ban direct sales of vehicles is Michigan. Today, Governor Rick Synder signed a bill into law that would ban such automakers as Tesla from directly selling vehicles to consumers. This bill also allows dealers to make the decision whether or not to charge the transaction fee. "This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at realign in Michigan. That is because this is already prohibited under Michigan law. The current law states that a manufacturer shall not "ell new motor vehicle directly to a retail customer other than through its franchised dealers…" the Governor wrote in a letter to legislators. The bill updates a current Michigan law by removing the word 'its'. This elimination causes Tesla and any other OEM who decides to do direct sales in the state not to be able to do it. Instead they would have to sell through a network of franchised dealers. Supporters of this bill includes the Michigan Automobile Dealers Association and General Motors. "We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor Snyder to sign it," GM said in a statement. Tesla on their part isn't happy with this law and blasted GM for its support of the law. "What's good for GM's customers is not necessarily good for Tesla's customers. What's good for gasoline cars is not necessarily good for electric cars. Tesla is selling a new product with a new technology,” the automaker said in a statement. “The evidence is overwhelming that a traditional dealer-based approach does not work for electric cars. Moreover, GM distorts the purpose of the franchise laws (including in Michigan), which are in place not to cement a monopoly for franchised dealers but rather to prevent companies with existing franchises from unfairly competing against them. Tesla has never used franchised dealers, so these concerns are simply irrelevant." Source: The Detroit News 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. -
The latest state to ban direct sales of vehicles is Michigan. Today, Governor Rick Synder signed a bill into law that would ban such automakers as Tesla from directly selling vehicles to consumers. This bill also allows dealers to make the decision whether or not to charge the transaction fee. "This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at realign in Michigan. That is because this is already prohibited under Michigan law. The current law states that a manufacturer shall not "ell new motor vehicle directly to a retail customer other than through its franchised dealers…" the Governor wrote in a letter to legislators. The bill updates a current Michigan law by removing the word 'its'. This elimination causes Tesla and any other OEM who decides to do direct sales in the state not to be able to do it. Instead they would have to sell through a network of franchised dealers. Supporters of this bill includes the Michigan Automobile Dealers Association and General Motors. "We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor Snyder to sign it," GM said in a statement. Tesla on their part isn't happy with this law and blasted GM for its support of the law. "What's good for GM's customers is not necessarily good for Tesla's customers. What's good for gasoline cars is not necessarily good for electric cars. Tesla is selling a new product with a new technology,” the automaker said in a statement. “The evidence is overwhelming that a traditional dealer-based approach does not work for electric cars. Moreover, GM distorts the purpose of the franchise laws (including in Michigan), which are in place not to cement a monopoly for franchised dealers but rather to prevent companies with existing franchises from unfairly competing against them. Tesla has never used franchised dealers, so these concerns are simply irrelevant." Source: The Detroit News 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
