From Electrek: Michigan denies Tesla’s dealer license, automaker says it will keep fighting

Discussion in 'News from Electrek.co' started by RSSFeed, Sep 16, 2016.

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  1. RSSFeed

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    Michigan is the most populated state in the US that still doesn’t have a Tesla store or service center. It’s not because Tesla doesn’t want to open one. The company has plans to open a location in Detroit for over 2 years now, but the state direct sales law is banning the automaker from operating a store without going through a third-party dealer.

    Again this week, Tesla lost another battle in the state as the Michigan Secretary of State upheld a decision to again deny a dealer license to the automaker for the Detroit store. more…

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  2. Dan Detweiler

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    Disappointing...but not surprising. Michigan will be dragged into the fold kicking and screaming all the way once the Model 3 comes out.

    Dan
     
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  3. MelindaV

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    You all remember that quote from the Dealer Association a week or two ago saying the Model ☰ would be a game changer? I expect that comment was made to spur local dealerships (and those with an interest in traditional dealerships) to fight Tesla with all it takes. It wasn't to admit EVs are the way of the future, but to scare the current gas oriented dealerships/manufactures.
     
  4. KirbyTurbo

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    I took that quote to mean that they do not want to miss the money that could be generated.
     
  5. TrevP

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    Detroit auto makers are behind this.

    Tesla said they specifically submitted a dealer license knowing full well they were going to be rejected so they could sue Michigan for anti competitive practices. We'll see what happens next
     
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  6. Kizzy

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    I can't help but imagine Tesla setting up a virtual franchise. Buy in for, oh, say $500 and you get a leased facility and merchandise provided to sell. You'd be required to go to Tesla training. They'd essentially act as employees (with extra financial overhead), but in name, they'd be franchise holders. I don't know about the specifics of the law around doing something like this, but, well, Tesla does like to do these kind of legal maneuvers, no?
     

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