Mexican Media Brands
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.
#legal
Share
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.
RELATED CONTENT
-
U.S. Lawsuit Says Bosch Conspired with VW on Cheater Diesels
A U.S. lawsuit claims Robert Bosch GmbH conspired with Volkswagen AG to equip diesel-powered vehicles with software to cheat emission tests.
-
Takata Opens $850 Million Fund to Pay Carmakers for Airbag Woes
Takata Corp. has launched an $850 million fund in the U.S. to repay carmakers for a portion of their costs to recall Takata airbag inflators that can explode when triggered by a crash.
-
Ex-FCA Official Pleads Guilty in Labor Training Fund Scandal
Alphons Iacobelli, a former head of labor relations for Fiat Chrysler Automobiles NV in the U.S., has pleaded guilty of stealing millions of dollars from an employee training fund.