Michigan to Tesla Motors: You're Not Welcome

Forbes ^ | October 21, 2014 | Micheline Maynard

[LogicDesigner]

Michigan’s Republican governor signed legislation on Tuesday that officially bans Tesla Motors and any other carmaker from selling directly to consumers in the state.

But Rick Snyder, who is seeking re-election next month, maintained in a letter to lawmakers that the bill simply clarified the state’s existing law and that such direct sales already were not legal in Michigan, home to Detroit’s big auto companies.

Now, state law requires that Tesla, or other car companies, must sell vehicles through networks of franchised dealers. If the company doesn’t have its own network, the state requires it to sell vehicles through another car company’s dealership network.

[LogicDesigner]

“Before removing ‘its’ motor vehicle producers had to sell through a franchise and after removing ‘its’ motor vehicle manufacturers have to sell through a franchise.”

So why did they bother to change it?

[Salvation]

Not a smart political move — or am I wrong?

[cripplecreek]

They didn’t really do anything. This is just the usual sleazy Tesla attention grabbing self promotion with an eye on helping the democrats.

[EternalVigilance]

“Now, legal plunder can be committed in an infinite number of ways. Thus we have an infinite number of plans for organizing it: tariffs, protection, benefits, subsidies, encouragements, progressive taxation, public schools, guaranteed jobs, guaranteed profits, minimum wages, a right to relief, a right to the tools of labor, free credit, and so on, and so on. All these plans as a whole — with their common aim of legal plunder — constitute socialism.

Now, since under this definition socialism is a body of doctrine, what attack can be made against it other than a war of doctrine? If you find this socialistic doctrine to be false, absurd, and evil, then refute it. And the more false, the more absurd, and the more evil it is, the easier it will be to refute. Above all, if you wish to be strong, begin by rooting out every particle of socialism that may have crept into your legislation. This will be no light task.”

— Frederic Bastiat, the Law, 1850

[absolootezer0]

so does that open up more places to send cars? like ford could only sell to its ford franchises, can they now sell to chevy and chrysler franchises?

if so, then wouldn’t that give the manufacturers back as many places to sell their cars as they all dropped a couple years ago?

also, it would add convenience to shoppers though, they could compare multiple brands at one dealership, not drive all over town.

[cripplecreek]

so does that open up more places to send cars? like ford could only sell to its ford franchises, can they now sell to chevy and chrysler franchises?

Seems to me that it does exactly that. Rather than a manufacturer selling through "its" franchise, it can sell though any franchise. None have been able to sell without a franchise. (I don't like that but its the same for all) Personally I think anyone buying a car without a dealership is asking for trouble. How do you get a Tesla fixed? You can't simply take it to a local garage and there are no dealerships.

This current legislature has done more deregulating than any I remember in Michigan doing before.

[Mr. Lucky]

Well, yeah; but, it’s hard to generate much pity for a company whose product is so heavily subsidized by tax credits.

[LogicDesigner]

“How do you get a Tesla fixed? You can't simply take it to a local garage and there are no dealerships.”

The whole point is for Tesla to be allowed to run their own, manufacturer owned, non-franchised dealerships.

Here is a map of their current locations (red is current, gray is “coming soon”):

http://www.teslamotors.com/findus#/bounds/55,-70,15,-115,d?search=service,

Unfortunately, Michigan's part of the map will remain blank for now.

[SunkenCiv]

> the bill simply clarified the state’s existing law and that such direct sales already were not legal in Michigan... Tesla, or other car companies, must sell vehicles through networks of franchised dealers...

Wow, can someone who buys $100K autos cope with this inconvenience?

[Teacher317]

If Tesla were honest, they would go to the other manufacturers and say “Let’s work together to change this bad law”

Work with their competitors, to change the bad law that directly benefits those competitors? Did you really mean to suggest that without a sarcasm tag?

[cripplecreek]

They do it all the time.

[NavVet]

I’m sure most Tesla owners charge from home and the “Free Supercharger stations” along the interstate may appear free, but the cost is included in the price of the car. With regard to road maintenance costs, I’m sure more states will do what Oregon already does and charge EV owners an annual fee in lieu of gas taxes.

I agree, that what the government is doing to coal will inevitably make electricity rates “Skyrocket” But they would have to go up several 100 percent to make gasoline cars more economical on a per mile basis (Not factoring in the purchase price of the vehicle.)

[palmer]

But they would have to go up several 100 percent to make gasoline cars more economical on a per mile basis

No. The Tesla goes about 270 miles on the 85kWh battery and takes 100kWh to charge it. That's $14 for 270 miles or 5.2 cents a mile. A gas car getting 58 mpg would have the same cost at $3 per gallon.

Do not add your ratepayer subsidized electricity costs because other ratepayers do not appreciate paying for your ride when they can barely afford their own gas. Do not put up Tesla propaganda numbers. A realistic comparable gas car would get at least 30mpg if not 40 and the Tesla is 58 mpg with 14 cent electricity and $3 gas.