Dealer protections that ban Tesla from Michigan

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LockH   100 GW

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Dealer protections that ban Tesla from Michigan

Post by LockH » Oct 16 2016 6:16am

... are meritless. :)
http://www.freep.com/story/opinion/cont ... /92000366/

In part:
Michigan remains one of the shrinking number of states to prohibit a car manufacturer like Tesla Motors from opening its own showrooms and service centers and dealing directly with customers. Instead, Michigan requires car manufacturers to use franchised dealers for all customer transactions. Most other states have recognized that allowing consumers to choose between franchised dealerships and company stores is good for competition, innovation and consumer choice.
... and:
Two weeks ago, after years of failed efforts to get the Michigan Legislature to update its car laws for the 21st Century, Tesla filed a lawsuit in Grand Rapids challenging the constitutionality of Michigan’s direct distribution prohibition. As the suit progresses, it will be interesting to see how the governor and attorney general try to defend Michigan’s outdated and anti-consumer law.
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Re: Dealer protections that ban Tesla from Michigan

Post by craneplaneguy » Oct 16 2016 9:00pm

That sounds about what I'd expect from Motown . When you're born in that area like I was, it is hard to explain to others how big, huge, a part of the economic scene is automotive based! Kind of like the agricultural powers that be here in Idaho. They rule with an iron fist, but that's the way it is, they pay (as in keeping the economy here healthy, and it is) THEY get to play. Musk should just diss the state, its just the way it is there.

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Re: Dealer protections that ban Tesla from Michigan

Post by LockH » Oct 16 2016 9:34pm

Hehe... We want the horse-drawn carriage industry back in Michigan!
http://www.mhdva.org/aboutus.html
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Re: Dealer protections that ban Tesla from Michigan

Post by Ykick » Oct 16 2016 9:39pm

Any state which has left turn laws like Michigan shouldn't be allowed to have cars/trucks.

But I wonder how Tesla auto drive handles a Michigan left?
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Re: Dealer protections that ban Tesla from Michigan

Post by tomjasz » Oct 16 2016 11:40pm

States have many antiquated laws governing dealerships. Sunday closings comes to mind. But then I could never walk the dealerships without some sales sleaze pestering.
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Re: Dealer protections that ban Tesla from Michigan

Post by Hillhater » Oct 17 2016 5:12pm

Teslas non dealership sales model will be a big problem for them if they really expect to produce and ship the volume of vehicles they need to to survive.
Dealerships, are a necessary evil for volume sales. They enable manufacturers to focus on manufacturing, whilst spreading the inventory physically and financially out to where is needed, rather than the manufacturer having to hold all stock and carry the cost of unsold product.
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Re: Dealer protections that ban Tesla from Michigan

Post by LockH » Oct 17 2016 6:41pm

So... anything like bicycle sales? (Where ebikes are stomping the "competition"):
http://www.bicycleretailer.com/studies- ... AVdnCTwO1g

:mrgreen:
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Re: Dealer protections that ban Tesla from Michigan

Post by liveforphysics » Oct 17 2016 7:03pm

Hillhater wrote:Teslas non dealership sales model will be a big problem for them if they really expect to produce and ship the volume of vehicles they need to to survive.
Dealerships, are a necessary evil for volume sales. They enable manufacturers to focus on manufacturing, whilst spreading the inventory physically and financially out to where is needed, rather than the manufacturer having to hold all stock and carry the cost of unsold product.
I would tend to find the opposite is true my friend.

A single mfg can best control production rates to suit real-time demand and allocate mfg'd inventory to exactly where peak demand happens to be. Somewhere you handle the overhead of customers demands and needs being met, the dealer isn't free anymore than its free for the MFG.
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