Published

Michigan Bans Factory-Direct Selling by Tesla

Michigan Gov. Rick Snyder has signed into law a measure that blocks carmakers such as Tesla Motors Inc. from selling vehicles directly to consumers.
#hybrid

Share

Michigan Gov. Rick Snyder has signed into law a measure that blocks carmakers such as Tesla Motors Inc. from selling vehicles directly to consumers.

The bill began in May as an unrelated proposal to standardize how dealers charge customers for new-car paperwork and block carmakers from dictating such terms.

Language about prohibiting non-dealer sales appeared in the bill on Oct. 2. The bill then zipped through the Michigan legislature in record time and without the public discussion Tesla sought.

Snyder describes the measure as clarifying a state law that already requires carmakers to sell through franchised dealers. Tesla contends that such laws were designed to prevent carmakers from competing with their own dealers. It argues that franchise laws are not intended to prevent a new carmaker such as Tesla, which has no dealer network, from selling direct.

RELATED CONTENT

  • What the VW ID. BUGGY Indicates

    Volkswagen will be presenting a concept, the ID. BUGGY, a contemporary take on a dune buggy, based on the MEB electric platform that the company will be using for a wide array of production vehicles, at the International Geneva Motor Show.

  • FCA Opens the Door to The Future

    FCA introduced a high-tech concept vehicle today, the Chrysler Portal, at the event previously known as the “Consumer Electronics Show,” now simply CES.

  • Tesla Owners in Germany Ordered to Return Subsidy

    Germany has ordered about 800 Tesla Model S electric cars owners to pay back a €4,000 ($4,700) government subsidy they received.

Gardner Business Media - Strategic Business Solutions