Michigan Latest State To Ban Direct Tesla Sales
An anonymous reader writes As many expected, Michigan Governor Michigan Governor Rick Snyder signed a bill that bans Tesla Motors from selling cars directly to buyers online in the state. When asked what Tesla's next step will be, Diarmuid O'Connell, vice president of business development, said it was unclear if the company would file a lawsuit. "We do take at their word the representations from the governor that he supports a robust debate in the upcoming session," O'Connell said. "We've entered an era where you can buy products and services with much greater value than a car by going online."
Reinforcing an already existing ban was to make sure foreign markets don't try to muscle in and sell direct.
Direct sales, when no franchise has been offered, is no business of the state to regulate. Great Job everyone on voting for idiots who like to control everything.
Vote Libertarian in two weeks.
Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
OR NOT!
America always talks about how the Free Market help keep prices down and innovation high. It's clear from this that we have not had a free market in a long time. New business models come along to compete with old ones, and people pass stupid laws to prevent innovation. Sigh.
the old way of doing things is the only way to do things, right?
It would seem to me that Tesla could re-write their warranty to cover cars after they are re-sold. And if you have a neighboring state that decides to allow flexible temporary titling policies for a modest fee you could buy the car in a neighboring state, pay the neighboring state off and then title the car in Michigan. Traditional car dealerships provide almost no added value in the current market -- everybody builds their virtual car online and then hunts something close. About all a dealer is worth is allowing you to physically check the fit of the seats and the sightlines from the command module.
"It's not bigger government! It was already banned, we're just making sure!"
Time to ban Michigan from any sort of innovation based business.
Except direct sales of new vehicles was already banned before this was enacted.
If some law passed that allowed direct manufacturer to consumer sales, it would be labeled by politicians as a job killing measure that would kill small businesses. Typical election politics.
http://www.nissanusa.com/elect...
It's awesome.
There will be one state, or three, which will allow the sales of Tesla products. These states will reap the tax benefits. And I laugh heartedly at the Governor of Michigan, with broke-ass Detroit, turning away from what could be a spigot full of tax income.
Remember kids, if you're not paying for the service, YOU ARE THE PRODUCT THAT IS BEING SOLD.
I don't know... the idea of buying a car from a company with a reputation for high quality seems awfully scary compared with going in to chat with a high school dropout who knows how to schmooze and is on commission. Personally, I'm grateful for the government's protection.
Could somebody please draw a map showing where Telsa's direct sales model has been banned? Seems like this story is on its way to running 50 times...
The US has 'socialized' markets; most everything innovative is state subsidized (i.e. socialized: paid with your tax money) and state-protected (aerospace, oil, pharma, bio). Everything that's truly innovative, as in the "High Praise the US of A Land of Opportunity" (sure...), --achieved by personal struggle and personal enterprise--, that's who that famous Free Market is for.
Tesla should just wait and be embraced by GM, so they, GM, could either obtain heavy subsidies for it, or kill it off, whichever suits them best. Or, Tesla might move elsewhere, where the market operates similarly, but they don't lie about it calling it 'Free'.
Tesla can't form its own dealerships in a growing number of states, and existing dealerships don't want to sell Teslas because the market is too narrow for them to reasonably make a profit (case in point: every Tesla ever manufactured is already sold).
File under 'M' for 'Manic ranting'
http://www.mojomotors.com/blog...
http://www.autonews.com/articl...
So buy the car and have it delivered to you in another state. Then move it to Michigan. Standard Operating Procedure. People buy cars all the time and then move from one state to another. People go to another state and buy cars. This Michigan law is merely fanfare, not a real issue.
"Mr. Musk is a brilliant man, and Tesla is an innovative company. We can all respect that," says Jim Appleton, the president of the New Jersey Coalition of Automobile Retails. "But he doesnâ(TM)t get what it takes to do business in New Jersey."
Translation: Musk won't pay off all the useless parasites represented by Jim Appleton and all the corrupt government officials like Governor Rick Snyder the required under-the-table money to do business in their state.
Tesla, open a dealership, complete with a repair and body shop. You can even finance your own vehicles. This can be done in every state. Your prices will go up a little bit.
Politics; n. : A religion whereby man is god.
Yeah... starting sometime after the 1940's
This issue is a bit more complicated than you think.
These outdated statues were originally designed to protect little dealerships from the threat of big auto opening their own dealerships if one of their indirect dealers refused to carry their lemons. So dealers under pressure from Detroit were forced to sell the crappy next to the good cars.
Today, prohibiting direct sales protects only the dealerships and harms the consumer. There’s no reason to prohibit a consumer from buying directly from the manufacturer.
To my knowledge (and I'm sure you'll "correct" me), no one is forced to pay anything over minimum wage, which clearly does not fall into "more than I'm worth". Any other idea you may have about being forced, say by a Union, is no force at all. The company came to an agreement with the Union on pay rates of their own volition. If you want to trot out government pay scales, those are budgeted by our own Congress (or a subcommittee) and therefore cannot be counted as forced either. Who's being forced to pay "more than someone is worth" hmmm?
It was my understanding that many states will not allow you to title a vehicle in the state if you do not have a physical address. If that is the case, any of the banned states could refuse to title one that does not already have an existing title which makes your end run scenario ineffective. By the time I get around to buying one, they'll be antiques anyway, so it probably won't matter :(
For instance, in Tennessee, from the DMV website:
In the case of an individual, Tenn. Code Ann. Sections 55-3-103(a) and 55-4-101(c) require a person seeking to register a vehicle in Tennessee to have a bona fide residence in Tennessee. The use of the term "bona fide residence" simply means that a person is living at a physical location in the state of Tennessee.
How the hell can a state tell a consumer what they can buy online?
Land of the free, as long as you stay home watching television.
Thanks for coming to see me today, Mr Musk. Have a seat. That's a fine lookin automobeel you have there. It'd be a shame if sumthin happened to it, what with the lack of dealerships in this state. Perhaps you should think about opening a few here just in case, ya know for hail or falling pianos. You wanna cannoli?
Actually if that is the reason for doing it then the hypocrisy has more to do with free trade and innovation than big government. The US keeps wanting to setup free trade agreements which export its IP laws "to protect US innovations" and (allegedly) promote free trade. At the same it is passing internal laws to exclude foreign competition and is so hell bent to do so it doesn't care if it damages some highly innovative US companies in the process. Mind you I'm not sure whether this is a case of double hypocrisy or just shooting yourself in the foot, twice.
I don't understand why this silliness isn't being slapped down by the feds.
I mean virtual "physical home" addresses that you can rent, along with the suitable internet proxy server to make you appear to be from that state. Combine this with a "we will deliver your purchased goods to your real address for a nominal fee" service, wrap that all up in a bow, and voila: shiny new car !
Where are we going and why are we in a handbasket?
What is meant by "direct sales". Is it like in NJ where they can have a rep tell you about it but cant discuss price? In order to buy you have to go to Teslamotors.com and order it yourself? Or do they mean you can't even do the latter and get it delivered to your house or won't give you tags in that state?
1. 21 stops * 0.5 hours / stop != 17 hours /hour == 2.6 hours; 0.5 hours / 2.6 hours ~= 20% additional road time for the electric car, not 50%
2. 170 miles * 21 == 3570 miles. 3570 miles / 65 miles / hour ~= 55 hours (which is > 2days even if you drove straight).
3. 170 miles / 65 miles
The problem is that you now have the big players writing the laws to stifle competition. In this case, it's not the auto manufacturers, but the dealerships. The dealerships are not the mom and pop dealerships but the huge conglomerates. For example, the 5th largest which Warren Buffet just bought, the Van Tuyl Group does $8 billion in annual revenue. In my area there are a huge number of dealerships under the Del Grande Dealer Group. These are the guys who are paying off the politicians.
To get an idea of why car dealerships are generally so unpleasant to deal with This American Life has a good podcast showing why car salesmen are the lying scum they are. Some of the auto manufacturers would like to ditch the dealerships but they can't due to the laws. Most states have laws that prevent manufacturers from competing against dealerships but those don't apply if there are no dealerships as in Tesla's case.
The dealerships like to make the argument that they add protection to the consumer. This is pure BS. I know someone who bought a Fisker Karma. When Fisker went bankrupt, so did the warranty even for those who paid for it. Most dealerships dropped all support for the car like a hot potato leaving the owners in a lurch or get support from a couple of ex-Fisker employees who do the support on their own and paying for all service and repairs out of pocket.
This post is encrypted twice with ROT-13. Documenting or attempting to crack this encryption is illegal.
You Americans have the best politicians money can buy.
I have a funny feeling Tesla will try in every single state before bringing any counter legal action.
This story looks similar to TUCKER adventure in the past century where Ford and other wone at shutting down the company.
Hopefully, this Tesla story will not end in the same way.
In France we're happy that Tesla is boosting this technology. Eventhough France is far from being perfect at hosting companies, Tesla is welcome to move here ;-)
USA prides itself on it's free market economy, and freedom to buy anything legal ... Execpt if it's a car apparently ...
Albeit they have a GOP governor, Michigan is the bluest of blue states. Let's all watch the fucking ship sink beneath the waves together.
Msg to Tesla, pay more in 'political' donations ..
Socialized does not mean paid with by tax money. Socialized means that the workers or public collectively own the means of production.
You're talking about fascism, which Mussolini was fond of describing as "the union of the Corporation with the State."
Those who advocate genocide deserve every protection afforded by law, and none afforded by common human decency.
It simply requires a business presence and that the seller of a new vehicle also provide warranty service at the point of sale.
Tesla is perfectly free to sell cars direct to consumers in Michigan provided they also provide service and repair for those vehicles at the point of sale.
This law is a violation of the interstate commerce clause of the US constitution. Its hard to imagine a more flagrant and direct violation than businesses in one state blocking competition from a business in another state from doing business in that state.
Because our federal government is hopelessly corrupt, and has been giving inferior auto manufacturers preferential treatment for decades in the form of subsidies and bailouts. This is caused by:
A) Trusting a small group of people to make nationwide decisions
B) It's cheaper to bribe a small group than everyone, and
C) There is no effective way to prevent or catch even overt bribes, let alone campaign contributions and favors.
It's a real dilly of a pickle because the people in power now have no incentive to fix it, and the public will never be as rational as the market for bribes. I fear this may be a fatal flaw in representative democracy, and will force us to either pure democracy or market anarchism.
N/T
Driving 105 miles an hour and counting an extra 15-20 minutes for each stop to get to the charging station (you are right, it should be an extra 20-30 at least, as even if they are on the interstate there will be a wait for one of the high speed chargers, plus time to get everything hooked up/unhooked each time) then the match checks out fine.
Drop the speed to 80 miles/hour and estimate an hour for each full charge (30 minute charge, average 10 minutes wait, and 10 minutes each way from the interstate to the charging station) and we are looking at exactly 50% extra time.
It was ALREADY illegal. The bill just made the legal language clearer supposedly in an attempt to circumvent frivolous legal challenges, thereby costing the state money.
Personally, I wouldn't mind being able to just order a Jeep, GMC, Ford online but that's not gonna happen even if it were legal probably for a VERY long time if ever given the existing mfgs incestuous relationships with their dealers. Not to mention even IF it did happen dealers would probably make life hell trying to get service on a vehicle.
Don't give rat's behind about tesla as they're simply not practical in any way shape or form, and even worse here in the north with further degraded batt perf during winter(or about half the year).
After wasting tax dollars passing such nonsense into law the people of Michigan can now look forward to a huge waste of tax dollars as they have these laws struck down in Federal courts. What Tesla has done is designed a car that does not need dealerships at all. The Teslas can be repaired in any small garage and the parts are handled through parts store chains. The car dealers are freaking out as they can not compete. But they need to get the real message of capitalism. If you can not compete close down. You do not restrain trade of competitors to keep your company floating. That is illegal. Why is it that Ford, GM and Chrysler did not field an even better electric car than Tesla? The meat heads in these companies did not want to change and now they face oblivion. They earned their down fall.
1981 version
2014 version
Difference in clause (i):
@@ -1,7 +1,8 @@
(i) Sell any new motor vehicle directly to a retail customer other than
-through its franchised dealers, unless the retail customer is a nonprofit
+through franchised dealers, unless the retail customer is a nonprofit
organization or a federal, state, or local government or agency. This
-subdivision does not prohibit a manufacturer from providing information to
-a consumer for the purpose of marketing or facilitating the sale of new
-motor vehicles or from establishing a program to sell or offer to sell
-new motor vehicles through the manufacturer's new motor vehicle dealers.
+subdivision does not prohibit a manufacturer from providing information
+to a consumer for the purpose of marketing or facilitating the sale of
+new motor vehicles or from establishing a program to sell or offer to
+sell new motor vehicles through franchised new motor vehicle dealers
+that sell and service new motor vehicles produced by the manufacturer.
. . . but I find it funny that they can't seem to get voted into office. Howzat work?
This ban has always existed, the bill only updates a few terms and had nearly full support from both parties in the state congress; which explains why he signed it.
I thought it was Fred Flintstone
Look, there is no justification for this law whatsoever. The governor is pretty clueless here.
This law cannot stand up in a court. This is an unconstitutional ban and it won't last. You cannot prevent a person from buying a product online if that product is legal to buy.
Also, what determines "online from Michigan?" What if I remote desktop to a machine in a different state and open the browser on that system and buy. Did I just break the law? Or since the system that did the ordering was in a remote state, wouldn't it be legal.
Can I buy it and have it shipped to my brother who lives in a different state and pick it up there?
Can I choose it online, and then fax or call in or is faxing and calling considered "On line". What if I get a downloaded PDF that I mail in? That definitely is not an order online.
Tesla should sue, but so should the state where Tesla has its headquarters.
The fact that shit can even still be banned in America, corporate or public, is fucking absurd.
Really? Banning a business from doing online business with an entire state? How is that even legal?
It's a bit ironic, actually. Dick DeVos Yes, that Dick DeVos, the Republican gubernatorial candidate before Snyder was elected.
Maybe it's precisely because he's got a Tesla, but there are no public J1772 charging stations in Ada, MI, in case anyone was wondering.
Some people believe the planet is already over its long-term carrying capacity and some humans will end up starving anyway.
This ban on the sale of cars by the manufacturers serves no legitimate purpose. From this it may be inferred that no honest politician would support a ban on the direct sale of cars by the manufacturers. Therefore the politicians who voted in favour of this ban are crooks.