Jump to content
William Maley

Tesla Takes the State of Michigan To Court Over Direct Sales Ban

Recommended Posts

It was going to happen sooner or later, but Tesla is taking the state of Michigan to federal court over its ban on direct sales to consumers. According to the suit, Tesla is seeking “to vindicate its rights under the United States Constitution to sell and service its critically-acclaimed, all-electric vehicles at Tesla-owned facilities in the State of Michigan”.

This suit comes after the Michigan's Secretary of State office denied Tesla a dealership license earlier in the month.

“The license was denied because state law explicitly requires a dealer to have a bona fide contract with an auto manufacturer to sell its vehicles. Tesla has told the department it does not have one, and cannot comply with that requirement,” said Michigan Department of State Communications Director Gisgie Dávila Gendreau in an email to The Detroit News at the time.

The law in question was signed back in 2014 by current Governor Rick Snyder which made it illegal for an auto manufacturer to sell vehicles directly to consumers. The law also prohibits a manufacturer from performing service on their vehicles.

“For the last two years, Tesla has pursued legislation in Michigan that is fair to everyone and that would benefit Michigan consumers. Giving auto dealers a monopoly on car sales benefits them, but harms consumers,” said a Tesla spokeswoman to Automotive News in a statement.

The lawsuit names Synder, attorney General Bill Schuette, and Michigan Secretary of State Ruth Johnson as defendants. Tesla has also requested for a jury trial. 

Tesla is seeking a permanent injunction to prevent officials in the state to enforce the relevant part of the law. This would force the state to give Tesla a dealer license.

We'll be watching closely to see if Tesla can make any headway.

Source: Automotive News (Subscription Required), The Detroit News


View full article

Share this post


Link to post
Share on other sites

Yeah, screw the D3 in this regard. If you make a better product you'll do fine and put them out. This only shows me the D3 are a bunch of babies afraid to make a great product.

  • Upvote 2

Share this post


Link to post
Share on other sites

As much as I love GM, I have to agree with ccap41 and others that in today's 21st century, companies should have the right to sell direct and not have to have a dealership. Tesla has Petboys work on their auto's so that does not conflict with the manufacturer working on their own auto's.

Direct sales rock! :metal: 

Share this post


Link to post
Share on other sites
1 hour ago, smk4565 said:

So are the only places to ban Tesla sales Michigan and North Korea?

Per the Bloomberg story,

http://www.bloomberg.com/news/articles/2016-09-22/tesla-lawsuit-claims-michigan-direct-sales-ban-unconstitutional

The only states that bane direct sales are Michigan, Texas, Connecticut and Utah.  

Share this post


Link to post
Share on other sites

That's convenient, but these automakers forget their own history. Before GM, Ford or Chrysler were big names with national dealers and all that, how DID they sell their wares out of their fledgling garages? 

 

  • Upvote 1

Share this post


Link to post
Share on other sites

The history shows that these laws were all agreed upon by the big 3 and have been in the books for decades to prevent just this sort of thing.  So what has changed?

Share this post


Link to post
Share on other sites

Americans wouldn't know a free market even if they were pimp-smacked by the invisible hand.

  • Upvote 1

Share this post


Link to post
Share on other sites
2 hours ago, Wings4Life said:

The history shows that these laws were all agreed upon by the big 3 and have been in the books for decades to prevent just this sort of thing.  So what has changed?

21st century technology and the Internet, ya know that thing that that idiot demobot said he created! ;):roflmao:

In all honesty, today's technology has allowed people to do their own research, schedule a test drive if they want or just buy it online. As such, new auto companies do not see the need for the ancient 20th century laws.

Gotta change with the changing times. As long as there is no monopoly, there is no reason a company should not be able to sell direct.

  • Upvote 1

Share this post


Link to post
Share on other sites
On 9/22/2016 at 1:51 PM, ccap41 said:

Yeah, screw the D3 in this regard. If you make a better product you'll do fine and put them out. This only shows me the D3 are a bunch of babies afraid to make a great product.

Agreed!

11 hours ago, dfelt said:

21st century technology and the Internet, ya know that thing that that idiot demobot said he created! ;):roflmao:

In all honesty, today's technology has allowed people to do their own research, schedule a test drive if they want or just buy it online. As such, new auto companies do not see the need for the ancient 20th century laws.

Gotta change with the changing times. As long as there is no monopoly, there is no reason a company should not be able to sell direct.

Internet is cool in regards to car buying. Would love to buy direct myself.

11 hours ago, bigpoolog said:

Americans wouldn't know a free market even if they were pimp-smacked by the invisible hand.

Nor do they really want one.  They seem very comfortable with the marginal quality provided by large corporations that do not have consumer interests in mind.

Edited by A Horse With No Name
Spelling
  • Upvote 1

Share this post


Link to post
Share on other sites

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By dfelt
      Hits Keep Coming for Tesla 3
      Edmunds two years ago put down a $1,000 deposit for the Tesla 3 and bought a $56,000 configured Tesla 3. This car to date has only been able to rack up 5,257 miles in 4 months due a very long list of problems and multiple service calls for what many call cutting edge EV.  The goal was to rack up at least 1,700 miles a month in the Tesla 3, so 6,800 miles in 4 months yet the EV is sidelined again awaiting a service call. Edmunds has confirmed that the Tesla 3 met and at other times surpassed the EPA rating for the car. The list of issues is so long that they have a google doc to just keep track of them all.
      Most common issues is the annoying and repeated uncontrollable increase in stereo volume even when your not in the car to maximum sound. This is just a small issue compared to the keycards not being recognized, touch screen freeze up and interior parts falling off the car such as the vanity mirror, which has been fixed and yet still seems to fall off when you open it.
      As the story continues, after the last service call where numerous issues were fixed, they then left to go on a drive and had the auto lock them out of being able to shift into drive or reverse until the auto rebooted and powered up. This along with a message that the car is in limited regenerative braking mode and the message that the car cannot maintain vehicle power and may stop or shutdown.
      There are a few highlights in regards to storage space and speed, but the pictures are funny. Currently this long term drive test auto is leaving anything but a positive experience for Edmunds.
      Edmonds Story
    • By William Maley
      .Over the weekend, Tesla CEO Elon Musk took to Twitter and announced a new powerful version of the Model 3. The version according to Musk will cost $78,000 and will be "quicker & with better handling.
      The last line of Musk's tweet made us chuckle since the current Model 3 warranty doesn't permit racing and autocross.
      Nevertheless, it has brought up questions as to where the $35,000 Model 3 is. For a number of buyers who plopped down the $1,000 deposit, this is the model they are waiting for. Musk gave a roundabout answer to where the low-priced Model 3 is.
      There is some truth to Musk's madness. Tesla is burning through cash like it is going out of style. According to Bloomberg, the company used up more than a billion in the first quarter. One way Tesla raises money is rolling out their most expensive variants of the Model S, X, and 3. Once they have enough cash, they will begin production of less expensive models.
      But the Model 3 has proven to be very problematic for Tesla. Various delays and production issues have caused Tesla to push back production targets for the Model 3 again and again. Tesla is aiming to produce 5,000 Model 3s a week by the end of the second quarter.
      “The idea that it’s supposed to be a car for everyone is kind of laughable. Anyone who wanted a base model may have to wait years out,” said Ivan Drury, senior manager of industry analysis at Edmunds.com.
      Source: Bloomberg (Subscription Required)

      View full article
    • By William Maley
      .Over the weekend, Tesla CEO Elon Musk took to Twitter and announced a new powerful version of the Model 3. The version according to Musk will cost $78,000 and will be "quicker & with better handling.
      The last line of Musk's tweet made us chuckle since the current Model 3 warranty doesn't permit racing and autocross.
      Nevertheless, it has brought up questions as to where the $35,000 Model 3 is. For a number of buyers who plopped down the $1,000 deposit, this is the model they are waiting for. Musk gave a roundabout answer to where the low-priced Model 3 is.
      There is some truth to Musk's madness. Tesla is burning through cash like it is going out of style. According to Bloomberg, the company used up more than a billion in the first quarter. One way Tesla raises money is rolling out their most expensive variants of the Model S, X, and 3. Once they have enough cash, they will begin production of less expensive models.
      But the Model 3 has proven to be very problematic for Tesla. Various delays and production issues have caused Tesla to push back production targets for the Model 3 again and again. Tesla is aiming to produce 5,000 Model 3s a week by the end of the second quarter.
      “The idea that it’s supposed to be a car for everyone is kind of laughable. Anyone who wanted a base model may have to wait years out,” said Ivan Drury, senior manager of industry analysis at Edmunds.com.
      Source: Bloomberg (Subscription Required)
    • By William Maley
      Tesla's 'production hell' is continuing on and is causing the automaker to shut down the Model 3 assembly line for almost a week.
      Reuters has learned from two sources that Tesla will stop production of the Model 3 from May 26th to 31st in an effort to fix the various bottlenecks on the line. A Tesla spokesperson declined to comment.
      Tesla warned that there would be 10 days of temporary shutdowns this quarter in an effort to try and get Model 3 production back up and running smoothly. CEO Elon Musk said the shutdowns would be used to make upgrades to reach a goal of building 6,000 Model 3s by the end of June. Already, Tesla stopped production for a few days last month, and also in February.
      The key problem is Tesla's over-reliance on robots for production, something Musk acknowledges. 
      Source: Reuters

      View full article
    • By William Maley
      Tesla's 'production hell' is continuing on and is causing the automaker to shut down the Model 3 assembly line for almost a week.
      Reuters has learned from two sources that Tesla will stop production of the Model 3 from May 26th to 31st in an effort to fix the various bottlenecks on the line. A Tesla spokesperson declined to comment.
      Tesla warned that there would be 10 days of temporary shutdowns this quarter in an effort to try and get Model 3 production back up and running smoothly. CEO Elon Musk said the shutdowns would be used to make upgrades to reach a goal of building 6,000 Model 3s by the end of June. Already, Tesla stopped production for a few days last month, and also in February.
      The key problem is Tesla's over-reliance on robots for production, something Musk acknowledges. 
      Source: Reuters
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.