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Conservative 'Anti-Tesla Bill' Means Economic Loss for Michigan

Discussion in 'Tesla, Inc.' started by RobStark, Oct 25, 2014.

  1. RobStark

    RobStark Well-Known Member

    Jul 2, 2013
    Los Angeles
    Jared Meyer | Oct 25, 2014

    The rationale for forcing people to buy cars at dealerships is not public safety. It is protecting favored industries that have contributed significant sums of money to politicians across the nation—especially in Michigan.

    Governor Snyder has received more than $175,000 this election cycle from automotive companies. Is it any wonder that General Motors and Ford both said in statements that they “applaud” Governor Snyder’s decision. The Michigan Auto Dealers Association has been a long-time backer of Hune, and his wife is a lobbyist for auto dealers. While Snyder is calling for the legislature to eventually debate the merits of requiring automobile sales through dealers, if the results of the vote on HB 5606 are any indication, the Big Three and Michigan dealers have no reason to worry—they already have the legislature in their pockets.

    The influence of these groups extends far beyond Michigan. The National Auto Dealers Association has spent $2 million on federal candidates during the current cycle. General Motors, Ford Motor Company, and Chrysler have spent a combined$34 million on federal lobbying and political contributions in the 2014 election cycle. Alternatively, Tesla has only spent $8,600.

    The policies favored by automobile makers and dealerships raise prices for consumers. A Department of Justice report found that dealerships raise the cost of new vehicles, and advocates eliminating them. The report estimates that the cost of the current distribution system accounts for 30 percent of the vehicle price—and half of this increase is directly from dealerships.

    The dealership model does have some benefits, such as flexible prices based on low financing rates. Dealerships also offer places for customers to service their vehicles. However, if dealerships benefit customers, why is it necessary to ban other manufacturers from using direct sales? If all consumers were truly benefitting, there would be no need to force everyone to shop at dealerships.

    Technological advances are making direct order and delivery of automobiles economically feasible and appealing to certain buyers. Automobile companies that choose to sell directly to the public can also offer maintenance centers or direct their customers to qualified mechanics.

    In other states that ban Tesla’s direct sales to customers the company still is free to offer “galleries” which do not sell vehicles, but let consumers learn about cars. Michigan is going a step further and banning informational galleries as well, so Tesla is not even free to talk to people about its cars. Apparently some hold entrenched business interests in higher esteem than free speech.

    Complete Article
    Means Economic Loss for Michigan - Jared Meyer - Page full
  2. Jaff

    Jaff Active Member

    Aug 15, 2010
    Grimsby, Canada
    So Hune's wife is a lobbyist?...sounds like a conflict of interest...

  3. Hkpkfan

    Hkpkfan Member

    May 19, 2014
    Hong Kong
    You'd think in America you have FREEDOM OF CHOICE. A consumer should have the freedom to decide if they want to buy direct or buy through a dealer. It is sad when government and dealerships work together to eliminate choices for the people.
  4. TexasEV

    TexasEV Well-Known Member

    Jun 5, 2013
    Austin, TX
    I hope you don't take offense at this, but what a great quote from someone from China! We need to use this line and it's attribution to someone in China whenever we speak to our state legislators. Give them that quote and also the fact that Tesla can sell its American-made car in the People's Republic of China but not in Texas or Michigan.
  5. chickensevil

    chickensevil Active Member

    Jan 2, 2014
    Virginia, United States
    Technically he is in Hong Kong which is slightly more free than mainland. But yeah, pretty much... it is a sad state we are in that it is easier for someone in China to get this car than it is in Texas... the state that prides itself on being "the most free"... or some such.

    As to Michigan I really hope this ends very badly for these politicians.
  6. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Well-Known Member

    Jul 12, 2012
    Oh in the USA there's a lot of freedom of choice. The government just doesn't do anything to make choice easy unless the companies that benefit from easy choice pay them more than the companies that benefit from making freedom of choice difficult. Unfortunately, monopolies and cartels create fat profits that make lobbying cheap.
  7. outdoors

    outdoors Member

    Aug 10, 2014
    valid location
    So strange it is to live here in Michigan. I talk to people from time to time about Silicon Valley and areas that have a growth vision. To see the wealth and standards of living that are created in such areas can be amazing. Sure every areas deals with issues as such as crime, social differences, and much more. But I tell you the people in this state get it, but the politicians are stuck as old relics in the past. If you don't foster an environment of growth you will be left as dinosaurs. Did anyone talk to a dinosaur lately?

    To quote a local connivence store owner in Michigan that would gladly accept a Supercharger. "Those guys up in Lansing, and Washington just don't get it. UBER, TESLA, AMAZON, These guys are changing the way we do things. They(politicians) are stuck with the past." I asked him the day of the Gov. signing the bill about the SC. I was steamed that day. Never thought in a million years that the store owner that is the stopping point for workers for the GM proving grounds would agree that it is a way to drive traffic, " I am all for it." He also said Amazon has hurt him, but it was up to him to adapt and be creative in the way he does business. These I believe our the people of our state. Those in Lansing are out of touch with their constituents.

    NADA MADA DADA. I cringe at the thought of having to take my Suburban to the "dealer". Local guy who I know, and see his family around town. He runs a business of taking care of all types of cars. Dealers don't touch my cars. Dealers just skim the cream. I can't stand that.

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