Topic: Michigan Gov. Snyder Signs GM-Supported Anti-Tesla Law

[Autos_Editor]

Factory direct sales now (more) illegal in Michigan

Read More...

[Fobroader]

I still don't get the reasoning behind this.....

[tooscoops]

it's a case of the old dealership system being so involved and expensive right now, that gm/chrysler/toyota/whomever just can't stop it... the job losses, the lawsuits, and all the rest that would come with manufacturers switching to "factory" stores is just too big a hit to take...

so rather than take that big hit, gm et al just want to prevent tesla from being able to start their marketing properly and in a smarter fashion...

not really fair. why should tesla be penalized for someone else's poor business plan and lack of long term strategy. being able to find ways to make a product less expensive for the final buying public should be rewarded, not penalized.

[Fobroader]

it's a case of the old dealership system being so involved and expensive right now, that gm/chrysler/toyota/whomever just can't stop it... the job losses, the lawsuits, and all the rest that would come with manufacturers switching to "factory" stores is just too big a hit to take...

so rather than take that big hit, gm et al just want to prevent tesla from being able to start their marketing properly and in a smarter fashion...

not really fair. why should tesla be penalized for someone else's poor business plan and lack of long term strategy. being able to find ways to make a product less expensive for the final buying public should be rewarded, not penalized.

Thats what my whole problem is. Tesla is a small, specialized manufacturer making high end cars, does GM think someone dropping $10K on a little Geo Metro thing is going to want to travel across the country for it?!?!?! No, will not affect them at all.

[tooscoops]

they are trying to make cadillac have a comparable vehicle... so they see a direct competitor having an advantage that they can't possibly match...

i understand their worry... but why is that anyone else's problem?

it's another case of them being so big they are trying to pull the whole, "but if we can't do what they are doing, it shouldn't be allowed... we're the big guys!".

i did a paper back in college pushing for factory stores for the existing brands. would have been ruinous to my family, but it is for the greater good... in the long run.

[redman]

tooscoops hit it right on the head. GM is damned if they do and damned if they don't. After all is Michigan not a G.M. state ?

[dkaz]

I think Mercedes Benz also only has corporate stores? I could be wrong.

I also interpret it as manufacturers cannot compete with their franchisees, then absolutely correct Tesla does not have franchisees to deal with. The sooner I can order a car on the internet and have it delivered to my house, the better. It seems Elio is doing just this.

[tpl]

So.  What happens if you live in Michigan and want to buy a Tesla? 

Do you buy it via  a proxy in a state which permits buying direct?  Drive to that state and call Tesla , collect the car there and trailer it back to Mich to register and pay sales tax?

Doesn't the ICC have something to say here on interstate trade in goods?

[EV-Light]

Factory direct sales now (more) illegal in Michigan

Read More...

stupid...! if I was Tesla's CEO I'd open a tiny little *franchise* and deliver all vehicles through it...I mean, there's nothing really stopping any of Tesla's employees to open a franchise in the state.

[Sir Osis of Liver]

These dealership restrictions were put in place when there were only a few major manufacturers and most dealers were pretty much mom and pop shops with little clout.
Those days are long gone. Dealerships are now huge franchised chains that cross state lines and exert enormous power in local and state politics. They don't want the status quo to change. GM doesn't want to be stuck with the disadvantage of dealing with these groups while Tesla doesn't.

Frankly, GM shouldn't have gotten involved, but they have a sort of an inverse Teflon thing going for them when it comes to publicity. Any kind of wrong-doing sticks.

[mmret]

America. Land of free markets.

[Sir Osis of Liver]

America. Land of free markets.

With a lack of regulation, you end up with oligarchs pushing self-serving laws.

[rrocket]

America. Land of free markets.

With a lack of regulation, you end up with oligarchs pushing self-serving laws.

What's the difference? You don't have oligarchs pushing laws, you have corporations pushing laws in the USA.

[mmret]

America. Land of free markets.

With a lack of regulation, you end up with oligarchs pushing self-serving laws.

So are you saying that the ban on direct factory sales is a good thing or a bad thing?

[Sir Osis of Liver]

America. Land of free markets.

With a lack of regulation, you end up with oligarchs pushing self-serving laws.

What's the difference? You don't have oligarchs pushing laws, you have corporations pushing laws in the USA.

Chieftains sit on each other's boards. The difference between what's going on in the US and Russia is down pretty much to scale.

[rrocket]

America. Land of free markets.

With a lack of regulation, you end up with oligarchs pushing self-serving laws.

What's the difference? You don't have oligarchs pushing laws, you have corporations pushing laws in the USA.

Chieftains sit on each other's boards. The difference between what's going on in the US and Russia is down pretty much to scale.

You should see all the people who work in the FDA that have ties with Monsanto.....Don't eat any food while in the USA!!   

[Sir Osis of Liver]

America. Land of free markets.

With a lack of regulation, you end up with oligarchs pushing self-serving laws.

So are you saying that the ban on direct factory sales is a good thing or a bad thing?

At this point, I think it's a bad thing. There are enough car companies competing, and the franchise companies have gotten so big and can control so much of local markets, that the need for the auto franchise protection laws has pretty much passed.

[jaari]

Well no GM or affiliates for me, goes for any that follow suit..

[OliverD]

I think Mercedes Benz also only has corporate stores? I could be wrong.

Mercedes has some corporate stores, mainly in large metropolitan areas like Toronto and I think NYC. Most stores are franchises though.

[dkaz]

I believe all Vancouver Mercedes Benz stores are corporate as well. I've never seen a franchise location which is why I asked. Good to know.