Tesla blocked from MI with law by dealers and GM

Tesla Motors' long-running fight to sell its electric vehicles through factory stores rather than franchised dealers had been something of a draw recently, with victories in New York and Ohio offset by a ban in New Jersey. Today, that tide turned against Tesla after Michigan Gov. Rick Snyder signed a bill — backed by the state's auto dealers and General Motors — that Tesla says not only bars its stores, but even a place where Tesla could tell customers about its vehicle.

The bill signed by Snyder, a Republican, had originally been offered by the Michigan Auto Dealers Association as a way to allow dealers more power to levee fees on buyers. It passed both houses of the Michigan legislature with a sole vote in opposition — and, according to Tesla, a single wording change that took place just before its final vote, without debate.

Tesla said last week the bill was "an effective prohibition against Tesla opening a store in Michigan," and "also seeks to prevent Tesla from operating a gallery in Michigan that simply provides information without conducting sales. We could even be barred from telling people about our car."

But Snyder released a statement upon signing the bill saying it did not change existing state law that he said required automakers to sell through franchised dealers. Not citing Tesla by name, Snyder said "I would be open and encourage discussion...to make sure Michigan was open to products and services from all over the globe."

In the states where Tesla has been banned outright, the company has still set up storefronts where it can advertise its vehicles. Before Snyder signed, General Motors also weighed in, as it has in other states, contending that the bill would "help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan."

Given the state-by-state battles underway, Tesla and co-founder/CEO Elon Musk have three choices going forward. It can keep battling in state legislatures, where car dealers hold all the political advantages. It can partner with dealers — although Tesla's corporate promise to not make money off vehicle service, it's build-to-order business and its strategy of setting up stand-alone stores would make such negotiations tough.

Or Tesla could push forward in the courts; it's already won a couple of rounds, and you can hear the echoes of its legal argument when it claims such rules force it "into a body of law solely intended to govern the relationship between a manufacturer and its associated dealers." The battle is over; the war rolls on.


https://autos.yahoo.com/blogs/motoramic/tesla-blocked-from-michigan-with-law-backed-by-dealers--automakers-220137284.html

If you cant beat 'em pay politicians to make them go away.

I wonder what the legality of this is?

Tesla hasn't broken any laws? Phone Post 3.0

lol @ anyone who still believes we live in a free country with a free market economy. 

what tripe.

fuck lobbyists and the bought off politicians.

Protectionist oligarchy

These guys have been preventing electric and alternative fueled cars for decades.  My dad test drove one of Chrysler's first prototype electric cars in 1992 in Thompson Manitoba.  He told me it had an 8 hour battery life, could go about 120 km/h and ran off 12 batteries that took about 10 hours to charge.  Basically the issue then was the charge time, but that has long since been fixed.  The oil companies and car companies have been working together to keep electrics down.

Mushroom Slap - what tripe.

fuck lobbyists and the bought off politicians.
This Phone Post 3.0

Republicans always talk about no government interventions, but when it comes to something they do not like, they go ahead and legislate the shit out of it.

Thank you, Rick Snyder, for being a complete pussy and not shooting this one down. And thank you, law makers, for putting in a stupid fucking law because your corporate masters requested it.

Dick Snyder is to worried about future reelection to do the right thing. THIS is what is wrong with our political system.

I really know nothing of Tesla and their struggles except what I just read. I think the decision is stupid, but are the representatives and governor of the state going against what the majority of the people want? It seems that it's being left up to state governments to decide how this is decided.

Anybody from Michigan that knows a little more about this? Phone Post 3.0

Hope I'm around in 40 years to see Musk: The Man and His Dream

TSMontana - Given that approximately 1 million domestic jobs rely on the big 3 American automakers keeping their market share, I'm not surprised, but I am disappointed. You would have thought he would have learned to not put all the eggs in one basket again.

It would have minimal impact on any jobs in Michigan. I do not expect a ton of Tesla cars to sell here. They are quite expensive and we in Michigan are kinda poor as fuck.

How is it that republicans can do stupid shit like this, yet still be known as a republican? This is the exact opposite of what a Republican should want, by definition. They should all be known as corporationists. Phone Post 3.0

HeHitsMeBecauseHeLovesMe - How is it that republicans can do stupid shit like this, yet still be known as a republican? This is the exact opposite of what a Republican should want, by definition. They should all be known as corporationists. Phone Post 3.0


facists is a better description.

Crony corporatism at its finest. Phone Post 3.0

HeHitsMeBecauseHeLovesMe - How is it that republicans can do stupid shit like this, yet still be known as a republican? This is the exact opposite of what a Republican should want, by definition. They should all be known as corporationists. Phone Post 3.0

because libtards, something or other, and some more stupid shit i hear om the OG when certain members feel their side is the better one.
this is the shit we get when we let them do whatever while we fight over who's team is the right one.

angryinch -

lol @ anyone who still believes we live in a free country with a free market economy. 

These are sad times Phone Post

Tucker part 2. Phone Post 3.0

Democracy!

Capitalism!

Fuck!

HeHitsMeBecauseHeLovesMe - How is it that republicans can do stupid shit like this, yet still be known as a republican? This is the exact opposite of what a Republican should want, by definition. They should all be known as corporationists. Phone Post 3.0
Because republicans are not pro free markets. The are "business friendly" ; they get massive hard ons to give incentives to business and pass laws protecting business.

This wouldn't be bad but they only do it for big business so it distorts the free markets and stifles innovation and small businesses. It keeps entrenched interest propped up. Phone Post 3.0