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.
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