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Another Model 3 plant coming to Michigan ?

Discussion in 'Rumour Mill' started by Van Shrider, Apr 17, 2016.

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  1. Van Shrider

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    #1 Van Shrider, Apr 17, 2016
    Last edited: Apr 17, 2016
    I was going to put this on another post where I was mentioning the new hires for service technicians that Tesla has listed on the website. However, my iPad battery gave out. Basically their career site says that they are hiring manufacturing and other jobs like project manager for model 3 were listed.

    Now they bought the tool and die manufacturing facility last year when they were having issues with them making hinges for model X.
    http://www.freep.com/story/money/ca...quisition-riviera-tool-grand-rapids/70916758/

    However, one might be tempted to speculate, given the job listings that are now listed for Grand Rapids.
    If there is room to expand there we might be surprised .

    Or maybe they are just hiring for parts making that will be sent to California
    Regardless it's nice to see all of the new hire postings for Tesla MFG jobs
     
  2. Badback

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    Given that Michigan doesn't allow Tesla to sell it's cars there, I would be very surprised.
     
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    • Drew

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      That would be awesome for them to come to Michigan but like said above I doubt they would manufacture here since Michigan told them off.
       
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      • garsh

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        That's what it is. Given all of the existing car manufacturing in that area, they would do well to look for additional parts makers that could help them out.
         
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        • TrevP

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          Tesla bought the company that was making the stamping dies for them in Michigan.

          They kept the employees and the facility there to make the dies for the foreseeable future.

          They're very vertically integrated much like Ford was at the Rouge River plant a hundred years ago. The only thing they don't do is smelt steel and make aluminum. But they do make their own aluminum castings now and brought seat manufacturing largely in house late last year. They were relying on Futuris to make the seats but last I heard they brought in a lot of their employees. This was at the same time as the Model X fiasco with the doors.
           
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          • Ken Hixson

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            I like the implications of hiring in Michigan and think it to be both a practical decision to advance their business but also a shrewd political decision. It is like David fighting Goliath in his backyard!

            I live in Utah which also doesn't legally permit direct auto manufacturing sales to consumers the same as Michigan and many other states. While it was a consumer protection decision years ago it is today at best an archaic remnant of the past . . . very much like making it illegal to spit tobacco on the barroom floor instead of using the spittoon, yes, one of the archaic laws still on the books!

            It doesn't stop anyone here from buying a Tesla or using the "Service Center" here as a "Sales Center". I just have to go online to order instead of signing a contract locally. Personally I like the lack of sales pressure.

            I say shrewd in the sense that the political barriers are irrelevant with the Internet. If I had to I would fly to Las Vegas or Denver to "buy" my Tesla and drive it home. Not having a Sales Center doesn't impede me at all, not having a Service Center is a deal breaker.

            Personally I couldn't care less it the laws stay the same. Not having a spittoon has never been a problem either.
             
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            • Red Sage

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              @Ken Hixson -- Though I understand your position, I am in favor of a level playing field. When Ford, General Motors, and Chrysler came to States like Michigan, Iowa, Texas, and Utah for the first time, they had a choice. They could sell direct, or they could use 'independent franchised dealerships'. They chose the franchise system. Tesla came to those States, and now the various dealership organizations want to act as if no one ever had a choice. They say that it is Tesla who is 'not playing by the rules' without admitting they actively worked to CHANGE THE RULES in order to bar them, and their chosen means of doing business. I am in favor of choice.

              For instance, I decided years ago that if at any company I owned my employees decided they NEEDED a union, I would close the company's doors for good (or sell it to those employees). Why? Not to break the union. But to admit failure to myself. Because if MY employees needed to unionize in order to be treated fairly, I must be doing something WRONG. I would rather choose to treat my employees properly from the outset, so that they never even consider having a union as an attractive proposition. I made that decision long before I heard the saying, "You get the union you deserve."

              Dell Computer. Krispy-Kreme. Starbucks. Companies that have good products that people like. Companies that sell direct to their Customers. Companies that expanded aggressively and chose how and when they would do so. Companies whose direct competitors didn't file Injunctions, or lobby a State Legislature, or coerce Regulatory bodies to block or ban their operations because of their unexpected success. Dell Computer started in Texas, and the Lone Star State is just the sort of place where I would hope Tesla's do-it-yourself attitude would be appreciated. Krispy-Kreme is based in North Carolina, another State that bars direct sales by Tesla at every turn and rather aggressively in favor of 'independent franchised dealerships'. Starbucks is based in Seattle Washington, the same State where Microsoft is based. But no one has forced Microsoft to close their Windows Store locations claiming they competed 'unfairly' against retail chains such as the Apple Store or Best Buy.

              A Windows Store doesn't have to carry the iPad or iPhone. Apple Stores aren't forced to offer the XBOX ONE or Windows for Mac. Winchell's and Dunkin' Donuts haven't forged an alliance against Starbucks to protect U.S. citizens from price gouging on a cup of coffee. Walmart and Best Buy haven't filed an action to prevent a Windows Store from selling XBOX ONE. Kroger and American Stores never needed legal protection to make sure Starbucks only sells bags of coffee beans through third party vendors. None of the Retailers that offer DELL Computers demand they stop selling through their website.

              Tesla Motors has figured out a way to distribute their cars in a scalable manner that will work just fine without having a third party in place as a middleman to do so. It is proven to work, that's why fully ten vehicles offered by General Motors across all its Divisions are being outsold by the Tesla Model S during 2016. The 'independent franchised dealerships' go out of their way to claim that Tesla would 'sell more cars' using them, but cannot explain why the Model S, with a Tesla presence being available in only 26 States of 50, is outselling every other flagship vehicle from any marque in the nation. Two years ago, when GM sent a letter to the Michigan State legislature, it went unnoticed that by claiming direct sales for Tesla was an 'unfair advantage' over other automobile manufacturers, GM was actually arguing in Tesla's favor, since that means in converse, having 'independent franchised dealerships' is a burdensome disadvantage. not that they made much sense anyway, because the basic argument was that it was unfair for Tesla to have ANY direct presence in the entire State. As if the 53 Cadillac, 102 Buick, 148 Chevrolet, 61 Lincoln, 143 Ford, 131 Chrysler, 125 Dodge, and 126 RAM locations held by 'independent franchised dealerships' throughout the Great State of Michigan couldn't hope to withstand the incredible pressure placed on the local market by the 13-year-old Tesla Motors setting up shop there to offer the Model ☰. C'mon, MAN!
               
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              • garsh

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                It looks like a little history lesson is in order. :)

                Car manufacturers originally did sell cars direct. You would call up the factory and order your car, sight-unseen. It would get manufactured & shipped to you. As you can imagine, many people didn't bother ordering cars, since there was no website where one could look at pictures. There were no youtube video reviews. At best, somebody else in town had one and you could ask to take a look. Manufacturers were young, and they couldn't afford to open a bunch of stores all across the country. They just wanted to make cars.

                Somebody then had the bright idea of ordering a bunch of cars, and then having a store in town where anybody could come look at the cars, try it out, and then purchase and drive away THAT VERY SAME DAY!!! It was a huge success, and worked wonderfully compared to the old phone/mail-order method.

                At some point, the auto manufacturers became big enough and profitable enough that they could afford to run their own stores. So they tried opening some stores themselves. The dealerships saw this as an attack on their business model (which it was). But dealerships had been around for a quite a while, and they made lots of money. So they banded together and used that money to purchase local politicians to pass laws that prevented manufacturers from running their own dealerships. They had lots of power at local levels, and the manufacturers decided that it wasn't worth fighting a huge number of battles at local levels all across the nation, and resigned themselves to their fates.

                I posted this video in another thread. It's excellent.
                 
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                • timk225

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                  Tesla should be telling the Michigan bribe-taking politicians "We will build and manufacture in your state IF we get full sales rights and unlimited dealerships / service centers, or we will take our jobs elsewhere".

                  Then the politicians can explain why they let the jobs leave.
                   
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                  • 1Libertariantreehugger

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                    That was awesome!
                     
                  • Red Sage

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                    Won't work. Those guys have their heads buried in the same sands of denial that the former 'Detroit Big Three' automakers enjoy. None of them believe that Tesla is in any way likely to survive. None of them believe that Tesla is doing anything more than blowing smoke. All of them are certain that Elon Musk is full of [STUFF] and that all his strategies are entirely incorrect.
                     
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