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Michigan About To Ban Tesla Sales

cartechboy writes It's a story we've come to see quite often: a state trying to ban Tesla's direct sales model. It seems something sneaky just happened in Michigan where Tesla sales are about to be banned. Bill HB 5606 originally intended to offer added protection to franchised dealers and consumers from price gouging by carmakers, and was passed by the Michigan House in September without any anti-Tesla language. However, once it hit the Senate wording was changed that might imply the legality of a manufacturer-owned dealership was removed. The modified bill was passed unanimously by the Senate on October 2, and then sent back to the House that day where it passed with only a single dissenting vote. The bill was modified without any opportunity for public comment. Michigan Governor Rick Snyder has less than a week to sign the bill into law. Of course, Tesla's already fighting this legislation.

20 of 294 comments (clear)

  1. Re:Telsa's lobbiest crashes by aristotle-dude · · Score: 5, Insightful

    Telsa... you're being banned state by state, what's wrong?

    They are not giving out big fat bribes to the right people.

    --
    Jesus was a compassionate social conservative who called individuals to sin no more.
  2. Wonder How Much? by Forgefather · · Score: 5, Insightful

    Wonder how much the dealer franchises had to pay in bribes for a unanimous vote. Seems a bit overkill when you only need a majority.

    --
    "There are lies, there are damn lies, and there are statistics"
    1. Re:Wonder How Much? by lister+king+of+smeg · · Score: 4, Insightful

      Wonder how much the dealer franchises had to pay in bribes for a unanimous vote. Seems a bit overkill when you only need a majority.

      They didn't have to Michigan is the home of Detroit the "Motor City". Any one voting against it would have been shooting themselves in the foot come time for election funding.

      --
      ---Saying gnome 3 is better than windows 8 not so much a compliment as it is damning with light praise.
  3. Let me FTFY by pr0t0 · · Score: 4, Insightful

    We live in an Oligarchy.

    If the majority of wealthy car dealers don't want Tesla ruining their state-sponsored, protectionist, big-government, corporate-welfare free ride; they'll send an army of lobbyists to make sure none of them have to compete against one.

    --
    I'm sorry, but your opinion seems to be wrong.
    1. Re:Let me FTFY by Anonymous Coward · · Score: 4, Insightful

      People can't have it both ways: Either money is speech and this is perfectly legitimate, or money isn't speech and it's not. If money is speech, then the auto manufacturers are simply using their freedom of speech to petition their government for a redress of grievances. If Tesla is losing this battle it means they aren't exercising enough free speech, or the public doesn't like what they have to say. It doesn't get much more American than that.

      On the other hand, if you don't believe money is equivalent to speech because then you can be born with more free speech than someone else, this is totally fucked up.

  4. Re:Telsa's lobbiest crashes by tlhIngan · · Score: 5, Insightful

    Telsa... you're being banned state by state, what's wrong?

    They're too successful, that's what. Mess with the Big Three and you're bound to run into trouble.

    Sorta kinda like Tucker.

  5. so im sure the pitch for this one was great. by nimbius · · Score: 3, Insightful

    auto exec:: you have to do something!!! Tesla will RUIN us with their online sales tactics and futuristic car designs they probably stole from us!! hard working people from michigan will lose their jobs!
    governor: what about flint, saginaw, pontiac, and detroit...theyre all completely bankrupt from 40 years of your bullshit.
    auto exec: yeah but that was just the hand of the free market and the customers werent buying and stocks too, those were bad.
    governor:so you're telling me you cant compete against another american car maker...but you already have an electric car called the volt...and you could just revive the 2 or 3 GM electric vehicles you designed in the past...those worked and were cheap.
    auto exec: yeah, we could, but thats all way more expensive than our 2015 strategy: Fucking do what we say or you're ass is out of office.
    Governor: Tesla?! why didnt you tell me about these flaming terrorist shariah abortion clinics on wheels sooner!

    --
    Good people go to bed earlier.
  6. Republicans Control Michigan by Anonymous Coward · · Score: 5, Insightful

    Here is where the logic fails

    1) Republicans control the House, Senate, and Governorship of Michigan.
    2) Republicans are "pro-business".
    3) Republicans believe in "minimal government".
    4) Republicans believe in "minimal regulation"

    It would stand to reason that people holding this philosophy would let the "market forces" take their course without government interference. However, this is not how they behave. Hmmm.

    1. Re:Republicans Control Michigan by asylumx · · Score: 4, Insightful

      Republicans believe in states rights, which means minimal federal government. They do NOT believe in "minimal government" as you called it. Republicans in state positions are VERY heavy-handed.

      And yes, Republicans control Michigan which is not likely to change anytime soon. That said, even if they didn't, auto mfg is the big industry here and most politicians R or D are not likely to do anything that would harm that industry, especially right now after they have just recently "recovered."

  7. Re:Telsa's lobbiest crashes by poetmatt · · Score: 4, Insightful

    Look at the existing franchise laws and how they are being used. It's not really a question that bribes are occurring, it's what lobbying is by it's very definition.

  8. Re:Telsa's lobbiest crashes by NotDrWho · · Score: 4, Insightful

    No. Lobbying involves talking and bribery involves illegal money.

    Oh, to be so young and naive again. Yes, little Jimmy, lobbying just involves talking--and Santa Claus is real too.

    --
    SJW's don't eliminate discrimination. They just expropriate it for themselves.
  9. Gaming the legislature by Anonymous Coward · · Score: 2, Insightful

    Anyone else slightly concerned that we can bait-and-switch bills like this? You can't just push a process past all the reviews and then modify the document at the last second in the hope no-one will notice. If it could be proven that the change was in support of a specific goal (as this one looks to be) then this is horribly dishonest. ...oh wait, we're talking about politics, sorry I forgot.

  10. Exclusivity is a great marketing ploy. by namhash · · Score: 4, Insightful

    I think this works in Teslas' favour. Nothing better than making something illegal to get the attention of everyone and make them want it more.

  11. Re:It's a Republican Thing by tomhath · · Score: 3, Insightful

    And for the irony, aren't the Republicans usually all for the free market and against restrictions?

    No. In general they don't like big government, but that's not the same as no regulation.

    In this case it's not clear if the driving force is dealers or the UAW, probably both. Odd bedfellows and all that.

  12. Re:Telsa's lobbiest crashes by LordLimecat · · Score: 2, Insightful

    So he asks for evidence, you dont provide any, and you get a +5 mod.

    Good work, guys.

  13. Re:Telsa's lobbiest crashes by msauve · · Score: 4, Insightful

    They don't have to bribe all 50 states. They only have to convince Congress to exercise its authority over Interstate Commerce to prohibit these anti-competitive state laws.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
  14. Re:Telsa's lobbiest crashes by Ralph+Wiggam · · Score: 3, Insightful

    I was saying that "lobbying" and "bribery" have actual definitions as words.

    So do you just ignore all facts that conflict with your narrative and make up word definitions as needed?

  15. Re:Telsa's lobbiest crashes by msauve · · Score: 4, Insightful
    You've never read the Constitution, have you? Fact is, this would be one of the increasingly rare legitimate uses for Article 1, Section 8, Clause 3, which gives Congress the power

    To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

    If SCOTUS can claim that growing a garden for personal use is Interstate Commerce, then so to is an automobile company in one state selling cars in another.

    --
    "National Security is the chief cause of national insecurity." - Celine's First Law
  16. Re:Telsa's lobbiest crashes by Ritz_Just_Ritz · · Score: 4, Insightful

    I love all the chatter about how Tesla is "harming the industry" by selling direct. **rolling eyes**

    Directly selling cars to the public is only harmful to the middlemen in the dealerships that ARE indeed greasing their state legislators with fat political contributions. Why should auto manufacturers be forced to deal with middlemen to sell to the public? How in the world does direct sales "harm the industry"? Are large home builders forbidden to sell houses directly to consumers? The whole concept of protecting a parasitic middleman is just ridiculous. It results in inefficiency and higher prices.

  17. Re:Telsa's lobbiest crashes by shilly · · Score: 3, Insightful

    You don't need legislation to deal with this.

    The hassle of a repair will figure into people's purchasing decisions. Other businesses will spring up, who make money from facilitating the repair process. Etc