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Michigan Turns Down Tesla Dealer License
The state of Michigan has rejected a bid by Tesla Motors Inc. to open a factory-owned retail store in the state.
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The state of Michigan has rejected a bid by Tesla Motors Inc. to open a factory-owned retail store in the state.
The electric-car company filed the request in November. In denying the application, Michigan’s secretary of state notes that state law requires all vehicle manufacturers to sell their cars to consumers “through franchised dealers.”
Michigan’s strong franchise law, which applies only to retail car sales, went into effect 35 years ago. The measure was adopted in large part to prevent carmakers from competing directly with their own franchisees by opening up factory-owned outlets.
Two years ago the law was amended to close a loophole that would have permitted Tesla, a new carmaker with no independent dealers anywhere, to sell directly to consumers.
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