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.

You could at least tell us when TFA is paywalled

[tepples]

From the featured article:

Get the Full Story: Digital + Print $12 for 12 Weeks. [ Subscribe Now ]

Editors: You could at least warn us that we won't be able to participate in constructive discussion of the featured article without paying.

Re:You could at least tell us when TFA is paywalle

[jae471]

They probably just assume no one reads TFA anyway....

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:Let me FTFY

[alexander_686]

Partly it is the American ethos, however romanticized, about the individual over society. A bigger factor, in my opinion, is that America's unions are pretty bad.

But here is the main reason. In business, contributions are split pretty evenly between Democrats and Republicans. It drifts from year to year, from industry to industry, but rarely do you find more than 70% coming from a single industry to a single party. I am not saying that Americans like corporate lobbing, but corporate lobbing does not discriminate.

Unions, on the other hand, give over 95% of their donations to Democrats. Than factor in that the majority of union members work for government. In effect, union members are hiring the managers who will be negotiating their salary. School board elections are notorious for this.

Re:You could at least tell us when TFA is paywalle

[OhPlz]

They probably didn't read it either.

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.

It's a Republican Thing

[Jodka]

According to this map, state bans on Tesla sales are a Republican thing.

The Governor of Michigan, Rick Snyder, is a Republican. The Michigan State Senate has a 26-to-12 Republican majority and in the House a 59-to-50 Republican majority. With control of both the executive and legislative branches of government, it is certainly Republicans who are accountable for revoking the freedom to purchase a Tesla in Michigan.

By the way, it is election season, and I have noticed signs in my neighborhood stating, "For freedom, vote Republican."

Re:It's a Republican Thing

[CoderJoe]

And for the irony, aren't the Republicans usually all for the free market and against restrictions? But here they're pushing for the opposite: restrict the market to block out competition and support the entrenched.

Re:It's a Republican Thing

[JeffOwl]

The Michigan State Senate has a 26-to-12 Republican majority and in the House a 59-to-50 Republican majority. With control of both the executive and legislative branches of government, it is certainly Republicans who are accountable for revoking the freedom to purchase a Tesla in Michigan.

So wait, 49 of the 50 democrat reps vote for this and all 12 democrat senators vote for this and it's a Republican thing?

you must be trolling.

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:You could at least tell us when TFA is paywalle

[XxtraLarGe]

Here, this one's free.

Re:2 Questions

[Anonymous Coward]

1) So the manufacturer cannot give their own dealership an unfair advantage over franchised dealerships. This is what happened back in the early 20th century when Ford and others were trying to strong-arm their franchisees.

2) So they can sell direct to consumers. They feel that existing franchised auto-dealerships will not give them a fair shake. They'll steer customers unfairly to buy the Ford, Chevy, Nissan, whatever else they're selling if Tesla doesn't give them a bigger commission. Think of the last time you visit a commission based electronics store (ABC Warehouse as an example), the salesmen will push a consumer to purchase the goods which give them the biggest commission. It doesn't matter what the consumer needs, they want a bigger payday, and honestly with that model it's hard to blame them.

Using the electronics example, Tesla is taking the Apple approach, where they want to control the presentation of their goods and who sells them. Apple might not get the greatest shake from the salesman at ABC Warehouse if Samsung is offering a higher commission. However when you go to an Apple Store, you get a salesman who is not paid on commission and their job is to solely educate you about Apple products. Tesla wants the same experience, come to a store where the salesman knows everything about a Tesla and can sell it to you in an environment catered to it. These are niche products that won't get a fair shake from the existing dealerships without a good bribe, just like our Congress in Michigan has shown.

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.

You want evidence? Here it is:

[Chas]

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

Good work, guys.

https://www.opensecrets.org/lo...

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.