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.

Comments

Re:Telsa's lobbiest crashes

[aristotle-dude]

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

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

Wonder How Much?

[Forgefather]

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.

Re:Wonder How Much?

[lister king of smeg]

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.

Let me FTFY

[pr0t0]

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.

Re:Let me FTFY

[Anonymous Coward]

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.

Re:Telsa's lobbiest crashes

[tlhIngan]

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.

Republicans Control Michigan

[Anonymous Coward]

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.

Re:Republicans Control Michigan

[asylumx]

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."

Re:Telsa's lobbiest crashes

[poetmatt]

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.

Re:Telsa's lobbiest crashes

[NotDrWho]

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.

Exclusivity is a great marketing ploy.

[namhash]

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.

Re:Telsa's lobbiest crashes

[msauve]

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.

Re:Telsa's lobbiest crashes

[msauve]

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.

Re:Telsa's lobbiest crashes

[Ritz_Just_Ritz]

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.