Michigan House Wants To Ban All Direct EV Sales EXCEPT Tesla - How Is This Fair?

Michigan politicians are trying to block new electric vehicle manufacturers from doing business in the state. Although carefully worded to include any type of auto manufacturing company, the Michigan “Motor Vehicle Franchise Act” was created specifically to block Tesla from doing business there, an obvious favor to the dealerships. The law already includes certain restrictions on auto manufacturers, restrictions that limit their ability to sell and service their vehicles in the state.

The upside to this bill is that the language leaves room for creative solutions — such as the 2016 settlement brought by Tesla against the state. The Michigan Attorney General interpreted existing law to allow Tesla and other manufacturers certain sales-type activities at gallery locations. These include consumer education about products (such as EVs), discussions about the price, offering test drives, and discussing financing in order to facilitate online orders and delivery. The only restriction was that the transfer of the title of the vehicle had to take place out of state, to comply with existing law.

CANADIANCOMMENTS - 9/25/2020 10:33:38 AM

+3 Boost

Vote out the GOP. Protectionism has clearly replaced open trade, commerce and a pro business stance in this party. You should be able to sell vehicles any way you want. Your company will reap the spoils or suffer the consequences based on your business model.. that's Capitalism (in case people have forgotten).

Agent009 - 9/25/2020 11:22:10 AM

+1 Boost

They are protecting an industry that historically bring outdated design to market year behind schedule. The new upstarts are far more nimble and the house knows this.

Section_31_JTK - 9/25/2020 3:23:16 PM

-3 Boost

Yes, let's install fascist leftists instead. Let's put in more politicians who encourage BLMS/Antifa terrorists to murder cops and citizens who don't agree with them. Canadians need to mind their own damned business. It's not like their own country is some paradise.

Hauerg - 9/25/2020 3:39:28 PM

+5 Boost

Another American idiot using words without having any idea what they mean.
And compared to the USA (rapidly reaching shithole country status) Canada IS a paradise.

Hauerg - 9/25/2020 3:40:18 PM

+2 Boost

The new EV companies will have to do the same work Tesla did: SUE until they reach a compromise.

Section_31_JTK - 9/25/2020 4:33:21 PM

-1 Boost

LOL I've spent a lot of time in Canada. It's nothing like a paradise, with your HST and other onerous taxation, the long long waits to see a specialist if you get sick, the waits for MRI and CT scans, the way it treats minorities, the runaway drug problems, the inability for the Crown to prosecute drug dealers, the idiot you have for a prime minister, etc etc etc. Oh gee, it's just like any other country.

Canadians are so full of smugness but their own country wouldn't even exist if not for the help of America. If America didn't provide for your defense your onerous taxes would even be higher. If America were not such a good customer, you'd have no one to sell to. I'd rather live in the USA than shithole Canada.

SanJoseDriver - 9/25/2020 7:41:37 PM

+2 Boost

It's not fair. I think Tesla will even come out and say it's not fair even though it obviously benefits them.

MDarringer - 9/25/2020 8:45:58 PM

-2 Boost

Direct sales is anti-consumer.

CANADIANCOMMENTS - 9/25/2020 9:13:23 PM

+2 Boost

You may feel that way, but it would take a gun to my head to buy from anyone but our local Toyota dealer. Nor would I drive out of my way to be serviced by another dealer or have to drive to the other side of the city to go to a "certified" repair or service centre from a brand that sells direct. Car dealers have such a huge advantage here with the customer relationships that they have built I would not bother fighting this myself.

MBguy - 9/25/2020 9:17:17 PM

+3 Boost

Passing legislation that specifically deprives citizens the ability to buy from a dealer - OR directly from the source - is anti-consumer.

MDarringer - 9/25/2020 9:22:22 PM

-1 Boost

So the two socialist pigs have farted.

Direct sales equals price fixing.

Direct sales benefits the seller NOT the buyer.

Direct sales is anti-consumer because they cannot get the best price.

SanJoseDriver - 9/26/2020 7:46:45 PM

+3 Boost

You can get the best price as there still is supply and demand. If the price is too high sales will drop. What's missing is the middleman markup, which gives more flexibility to drop the price lower.

Is there anything you buy directly today where you would say... I wish I bought that from a middleman instead? Seriously, would you pay 5%-10% more for Amazon products to get the same thing through a local dealer?

MDarringer - 9/26/2020 8:37:46 PM

0 Boost

This "You can get the best price as there still is supply and demand" isn't true when you have a fixed list price, no dickering.