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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."
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.
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.
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.
To be fair, dealers provide maintenance, repair, and recall services.
Those services are also provided by independent garages, usually at much lower prices.
That's a bigger factor in the history of these laws than the sales part.
No it wasn't. These laws were never, even in theory, about protecting the customer. They were about protecting existing dealer networks. Since Tesla never had a dealer network, these laws shouldn't apply to them.
Bans on direct sales of vehicles are nonsense, regardless!
The idea that forcing a "middleman" to exist, by the sake of legislation requiring it (because you know.... creates jobs!), is utterly flawed.
Manufacturers would, most likely, encourage (to the point of helping fund) local distributors/dealers regardless of any laws demanding it. When you sell enough volume of a product - it starts making sense to get other entities to help sell it for you.
Tesla Motors helps illustrate the need to REPEAL any existing law preventing them from doing direct sales!
They don't (yet) do enough volume to find it beneficial to sell through a dealer network. So why not accept that at face value, and let them do business the way they believe is most beneficial? Chances are, if they sell enough vehicles, they'll eventually WANT to work with established dealers to carry their brand. Teslas will eventually start showing up in appreciable numbers on the used car lots of existing dealerships anyway.
It's more like "is there anything else we can try to save Detroit from the evil non-Detroit manufacturers". Sadly, there's no saving Detroit.
Socialism: a lie told by totalitarians and believed by fools.
http://www.mojomotors.com/blog...
http://www.autonews.com/articl...
"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.
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.
I'm certainly no fan of the Republican Party, but the PATRIOT Act and all its progeny were bipartisan.
And the surveillance state got out of hand under the Republicans, but it didn't get any better under the Democrats, so I'm not seeing any partisan moral high ground here.
Ignorance killed the cat. Curiosity was framed.