Tesla Claims Michigan Legal System Is Rigged To Protect Dealer Network

Tesla Claims Michigan Legal System Is Rigged To Protect Dealer Network
A Tesla Motors Inc. executive lashed out at against the state of Michigan and Gov. Rick Snyder Thursday after the electric-car maker filed a federal lawsuit last week against the state challenging the prohibition against selling cars because Michigan law says news cars must be sold through franchised dealers.

Diarmuid O’Connell, Tesla’s executive vice president of business development, told the World Mobility Leadership Forum here that Tesla filed the lawsuit because “of the frustration we couldn’t get a fair hearing in this state.”


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TomMTomM - 9/30/2016 9:58:12 AM
+1 Boost
Actually -the Michigan system is designed to protect COMPETITION between sellers of the same automobile. A single owner of ALL outlets of a vehicle - and that being owned by the producer of the vehicle - means NO competition - which fails to protect the state car buyers.


HenryNHenryN - 9/30/2016 3:51:14 PM
-1 Boost
There is only ONE SELLER of the Tesla cars unlike the case with other makes, so there is NO COMPETITION WITHIN THE SAME BRAND - the basis for the law is invalid.

If Tesla selling cars directly to consumer is anti-competitive, then why do other 46 states allow it ? Would some auto dealers in those states file law suits against Tesla for selling something they don't ?

Once the case goes to federal court, the Michigan's anti-Tesla law will be overturned.



TheSteveTheSteve - 9/30/2016 12:40:22 PM
+1 Boost
20 years ago, if you wanted to buy a megayacht, you had no choice buy to buy it through a reseller. When the recession hit around 2008, even the super wealthy tightened up their purse strings and yacht sales slowed to a trickle. Rather than going bankrupt, yacht manufacturers got creative and decided to sell their multi-million dollar products directly to their clients, at a considerably reduced price. This stimulated yacht sales considerably, even during a recession. It kept the manufacturers, and the many thousands of people they employed, in business.

Private aircraft (think small, privately owned single-engine pistons or piston twins) used to be sold exclusively through resellers. Cirrus Aircraft, of Duluth Michigan, decided to do things differently by selling directly to customers. Their aircraft are comparatively priced, but you tend to get more aircraft for your buck from Cirrus than from the competition like Cessna or Piper. The Cirrus SR series is the most popular piston single, and has been for many years.

Preservation of the status quo is always a vote for stifling innovation and change. It's a vote for preserving what is, "the way we've always done it," rather than exploring new and potentially better ways. Many of today's laws were created as job-protection measures in a time before the Internet was invented.

If you believe politicians and lawmakers always and only act in The People's interests, think again. The auto manufacturers' lobby is very powerful, as is its influence in US government, as is its interest in keeping US auto manufacturing limited to The Big Three, and keeping Tesla down so they can get a better chance at selling their own EVs by eliminating the competition.

I say let Tesla sell directly to customers, providing ALL their distribution is done either (a) by Tesla or (b) by franchised resellers, but not a combination of both (which would give Tesla an advantage over its resellers). Also, let Tesla sink or swim based on its own merits, and not stifled by protectionist legislative restrictions from a bygone era.


vdivvdiv - 9/30/2016 3:51:33 PM
+1 Boost
Amen!


7msynthetic7msynthetic - 9/30/2016 3:09:39 PM
+2 Boost
And guess what, he is using the money from all those Model 3 deposits towards lawyers, etc.


MDarringerMDarringer - 9/30/2016 8:29:03 PM
+1 Boost
Michigan is "rigged" to protect consumers.


nguyenvuminhnguyenvuminh - 10/1/2016 2:19:44 AM
+2 Boost
I have purchased cars (no lease) for more than 25 years and have yet to see the benefits of the auto dealers. Their regular service can be done by reliable neighborhood auto shops and after the warranty expires, I've gone to the auto shops any way. The buying experience is painful, at best, especially dealing with assholes like MDarringer and his ilks. The financing can be done somewhere else. Test drive is the only thing worthy of my time at the dealer and if Tesla, Apple, XYZ can give curious buyers test driving opportunities without going through dealership, I don't see why dealers must be the only distribution channel.


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