Tuesday, February 2, 2016

Tesla Now Says It’s Not Looking to Sell Via Franchise Dealers in Michigan

TeslaNotGivingUpDirectSaleFight
-Earlier, we reported that Tesla had applied for a dealership license in the state of Michigan. At the time, we assumed Tesla was doing so because it had finally given up fighting anti-competitive legislators and the state’s dealership cartels, and decided to play by the rules with an independent dealership not owned by the automaker. According to Tesla, however, we were wrong to assume it would give up so easily. 
Automotive News reports that Tesla has actually filed this application to test the state’s commitment to banning direct-to-consumer car sales despite even the FTC encouraging states to allow it.


“As recently amended, current Michigan law prohibits Tesla from being able to license its own sales and service operations in the state. Submission of the application is intended to seek the secretary of state’s confirmation of this prohibition. Once confirmed, Tesla will review any options available to overturn this anti-consumer law,” said a Tesla spokesperson.

What we can’t be sure of, however, is whether this is an elaborate plan by Elon Musk to set a legal trap for the state of Michigan, or whether Tesla is just making a lot of noise before finally setting up some sort of dealership network in states that won’t allow its direct sales model.

At this point, Musk’s continued adherence to the direct-sales model is starting to feel a little like a personal vendetta against states that ban it.





Then again, it’s even more ridiculous that dealership groups have so much influence over lawmakers that they would support enforcing and strengthening laws that are so clearly anti-competitive.

This story originally appeared on Road & Track.


from Car and Driver Blog http://blog.caranddriver.com/tesla-now-says-its-not-looking-to-sell-via-franchise-dealers-in-michigan/


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