Michigan Customers are Screwed!

[outdoors]

Tesla can sell vehicles in Michigan under legal settlement

More details....

The person says that under the deal the Teslas will have to be titled in another state and then transferred to Michigan.

Under the agreement, Tesla will sell and service the vehicles under a subsidiary, the person said.

 

[Darmie]

Tesla can sell vehicles in Michigan under legal settlement

More details....

The person says that under the deal the Teslas will have to be titled in another state and then transferred to Michigan.

Under the agreement, Tesla will sell and service the vehicles under a subsidiary, the person said.

I read that as well. Found that kind of odd. It's as if then they are not really being sold in Michigan.

 

[outdoors]

Tesla can sell vehicles in Michigan under legal settlement

More details....

The person says that under the deal the Teslas will have to be titled in another state and then transferred to Michigan.

Under the agreement, Tesla will sell and service the vehicles under a subsidiary, the person said.

Now the news services seem to be updating their story as we go. Getting more bizarre by the moment.
Tesla can sell vehicles in Michigan under legal settlement


The person says that under the deal the Teslas will have to be titled in another state or Canada and then transferred to Michigan.

Canada?

Now that's a way to stimulate some trade.

 

[mongo]

Now the news services seem to be updating their story as we go. Getting more bizarre by the moment.
Tesla can sell vehicles in Michigan under legal settlement


The person says that under the deal the Teslas will have to be titled in another state or Canada and then transferred to Michigan.

Canada?

Now that's a way to stimulate some trade.

Sounds like the paperwork is the same, but Tesla can have a subsidiary in Michigan where people can pick up their cars and get them serviced.
This avoids the legislative issue since Tesla is still not selling cars in Michigan.

(h) Directly or indirectly own, operate, or control a new motor vehicle dealer, including, but not limited to, a new motor vehicle dealer engaged primarily in performing warranty repair services on motor vehicles under the manufacturer's warranty, or a used motor vehicle dealer. This subdivision does not apply to any of the following:

Creating a separate entity must be a way of sidestepping:

(q) Own a motor vehicle service and repair facility, except that a manufacturer may own a service and repair facility for the repair of manufacturer-owned vehicles.

Tesla owns a company that owns the service center?

 

[JJOhio]

If it is titled in Ohio, for example, Sales tax goes to Ohio, not to Michigan. As an Ohio resident, I say thank you very much for millions in additional tax revenue.

 

[outdoors]

Sounds like the paperwork is the same, but Tesla can have a subsidiary in Michigan where people can pick up their cars and get them serviced.
This avoids the legislative issue since Tesla is still not selling cars in Michigan.

Creating a separate entity must be a way of sidestepping:

Tesla owns a company that owns the service center?

NAGIHCIM Motors Ltd. is what Tesla should call it. Michigan spelled backwards. Just like it is as a state for this type of protectionism.

 

[JJOhio]

NAGIHCIM Motors Ltd. is what Tesla should call it. Michigan spelled backwards. Just like it is as a state for this type of protectionism.

Buckeye motors would be a better slap in the face.

 

[Fresh-popcorn]

As a Michigan resident I welcome the move to allow a Tesla Subsidy to provide a service center in the area but I find it dumb how the state is allowing the "selling in the state" part.

 

[mongo]

As a Michigan resident I welcome the move to allow a Tesla Subsidy to provide a service center in the area but I find it dumb how the state is allowing the "selling in the state" part.

I agree it is dumb, since, especially with this new agreement, all it does is cut tax revenue and create hassle for residents. (well maybe it shifts some sales to standard OEMs, but any other manufacture could set up normal dealers and steal market share also)

But in the near term it is the only quick option.The governor can't override the legislature. So she can't allow Tesla to sell cars directly in Michigan. The only way to get them here currently is to buy them where one can and then transfer them in.

 

[VT_EE]

Buckeye motors would be a better slap in the face.

Some of those tax dollars will end up at Ohio State.

 

[mongo]

Some of those tax dollars will end up at Ohio State.

Don't you mean The Ohio State?

 

[Eriamjh1138]

Hooray for Tesla at this (yet unannounced) news that they (somehow) will be (maybe) selling cars in (or next to) Michigan.

Here’s the real news: Michigan settled because they may have realized they were going to lose and lose big. By settling, Michigan is trying to keep the door closed to Tesla under the existing rules, but “allowing” them to operate some semblance of sales and service under the laws. It’s a leash, for now.

Residents have always had the option to buy out of state. i bought a MINI Cooper in Schaumburg, Illinois, because there wasn’t a particular model available in state. I paid all normal Michigan taxes and fees and drove it home same day. There was some kind of “neighbor” agreement regarding car sales. I thought Oho had the same agreement but that was in 2011, so maybe something has changed.

The big news is service. New cars are only sold once, but might need service many times. That means we need local service centers nearby the owners, not a day’s drive away.

I hope Rivian is paying attention.

 

[MP3Mike]

Here is the proposed settlement document between Tesla and Michigan: https://www.courtlistener.com/recap/gov.uscourts.miwd.85607/gov.uscourts.miwd.85607.267.0.pdf

Looks fairly reasonable to me. Tesla can't own the service facility directly, has to be owned by a subsidiary, but Tesla employees can do all of the work in the facility.

 

[mongo]

Here is the proposed settlement document between Tesla and Michigan: https://www.courtlistener.com/recap/gov.uscourts.miwd.85607/gov.uscourts.miwd.85607.267.0.pdf

Looks fairly reasonable to me. Tesla can't own the service facility directly, has to be owned by a subsidiary, but Tesla employees can do all of the work in the facility.

Yeah, Tesla can own the subsidiary that owns the facility.
Legal title (sales) must occur outside of Michigan, same as now.

No requirements for preferred state for sales tax (since there is no legal basis to do so)
This whole thing is purely an interpretation of the current law, how the executive branch will enforce it, and how Tesla can operate.

 

[mongo]

Key clarification which is different that the former "can't talk about sales" restriction:

Permissible activities at such a gallery include (but are not limited to) conducting demonstration drives; discussing prices, service, financing, leasing, and trade-ins with potential customers; helping potential customers configure a vehicle; facilitating ordering and purchase of a vehicle for which legal title transfers out-of-state; and facilitating customer transaction paperwork for a sale for which legal title transfers out-of-state;

This agreement allows all other aspects (prep, inspection, delivery, service) to occur in Michigan. Sign the paperwork, send it to Toledo, they process and send it back, drive off with your car to register it. Doesn't impact buyer at all vs standard dealership other that dealing with Sec Of State directly.

 

[RGloverii]

No restrictions on the number of 'galleries' or service facilities Tesla can open. In effect Tesla now has free reign over Michigan, with the only restriction being that the actual transaction needs to be conducted remotely (likely in Ohio).
But since the car can be delivered here locally, the customer won't really even notice the difference, aside from needing to take the Ohio title to the Secretary of State office.

I see this as a HUGE win for us current owners, as well as potential future owners. No real down side at all!

 

[Eriamjh1138]

I always thought the restriction talking about prices and stuff was total bunk!

 

[mongo]

I always thought the restriction talking about prices and stuff was total bunk!

The relevant passage from MICHIGAN VEHICLE CODE (EXCERPT)
Act 300 of 1949
257.248
Michigan Legislature - Section 257.248
(5) A person shall not carry on or conduct the business of buying, selling, brokering, leasing, negotiating a lease, or dealing in 5 or more vehicles of a type required to be titled under this act in a 12-month period unless the person obtains a dealer license from the secretary of state authorizing the carrying on or conducting of that business. A person shall not carry on or conduct the business of buying, selling, brokering, leasing, negotiating a lease, or dealing in 5 or more distressed, late model vehicles or salvageable parts to 5 or more of those vehicles in a 12-month period unless the person obtains a used or secondhand vehicle parts dealer, an automotive recycler, or a salvage pool license from the secretary of state or is an insurance company admitted to conduct business in this state.

Based on the settlement, since the sale happens out of state, the employees in Michigan are not constrained by this.

 

[arghx7]

I wonder what will happen to the service center on the Ohio border. Will that close or be relocated?

 

[mongo]

I wonder what will happen to the service center on the Ohio border. Will that close or be relocated?

It's in a good spot coverage wise, I don't see a need to eliminate it.