Tesla wins in Michigan!!!

[blanquito]

If you buy in IL, Michigan gets the sales tax.

I did not know that. I would have picked up in OH rather than IL; I thought MI had been at least losing out on sales tax for its anti-EV, anti-Tesla bias.

 

[blanquito]

Ruling attached
Repair facility needs to be non directly owned by Tesla, but can be a subsidiary, staffed by Tesla employees.
Legal title (sales) must occur outside of Michigan.
No requirement for prefered state for sales tax, this is purely an interpretation of the current law and how the executive branch will enforce it.

Really doesn't seem like that much of a victory so much as a workaround. IMO Tesla should have held out for their day in court and got the corruption overturned.

 

[mongo]

Really doesn't seem like that much of a victory so much as a workaround. IMO Tesla should have held out for their day in court and got the corruption overturned.

I know what you mean. Legislatively, nothing changed. However, the new interpretation by the executive and judicial branches is huge for Tesla's ability to conduct operations in Michigan. Other than the out of state paperwork processing and requirement to set up an intermediate service center owning company, it is identical to the best case scenario of the lawsuit.
Taking the settlement allows Tesla to start selling and servicing now without spending more on litigation.

 

[SO16]

I know what you mean. Legislatively, nothing changed. However, the new interpretation by the executive and judicial branches is huge for Tesla's ability to conduct operations in Michigan. Other than the out of state paperwork processing and requirement to set up an intermediate service center owning company, it is identical to the best case scenario of the lawsuit.
Taking the settlement allows Tesla to start selling and servicing now without spending more on litigation.

I agree. This is overall good news for Tesla and owners in Michigan. I’ll be glad when they setup a service center in the Grand Rapids area. I haven’t had to take my car in to the service center yet after 3 years and 44k miles but I will do so one time before my warranty expires. I’d certainly rather take it to GR compared to Chicago or Toledo.

The setting up of an out of state entity to handle this paperwork is laughable. Just shows the absolute absurdity of the law. I don’t think there will be any pain to Tesla buyers though as it sounds like Tesla will handle that paper shuffling.

 

[blanquito]

I agree. This is overall good news for Tesla and owners in Michigan. I’ll be glad when they setup a service center in the Grand Rapids area. I haven’t had to take my car in to the service center yet after 3 years and 44k miles but I will do so one time before my warranty expires. I’d certainly rather take it to GR compared to Chicago or Toledo.

The setting up of an out of state entity to handle this paperwork is laughable. Just shows the absolute absurdity of the law. I don’t think there will be any pain to Tesla buyers though as it sounds like Tesla will handle that paper shuffling.

I understand the pragmatism and would certainly appreciate an SC without traveling to Chicago or Toledo. But I don't think this is equivalent to the best case scenario: the best case scenario could have been overturning of the law by a Federal court (I imagine the MI Supreme Court would have upheld) and setting of a precedent at least within the circuit (non-lawyer here so this may not be 100% correct terminology-wise).

 

[SO16]

I understand the pragmatism and would certainly appreciate an SC without traveling to Chicago or Toledo. But I don't think this is equivalent to the best case scenario: the best case scenario could have been overturning of the law by a Federal court (I imagine the MI Supreme Court would have upheld) and setting of a precedent at least within the circuit (non-lawyer here so this may not be 100% correct terminology-wise).

Ideally I would like if Tesla could have taken this to the Supreme Court and get these nonsense laws turned over at the federal level.

 

[ItsNotAboutTheMoney]

If passed, the new house-approved bill would allow Tesla (and other pure-EV OEMs) to sell cars in Michigan and directly own service centers.
http://www.legislature.mi.gov/mileg...endment&cvFileName=2020-HCVBS-6233-0O3313.pdf

View attachment 614111

Where is "electric motor vehicle manufacturer" defined?

 

[mongo]

The final bill that was passed by the house is : http://www.legislature.mi.gov/documents/2019-2020/billengrossed/House/pdf/2020-HEBH-6233.pdf

This bill is not good for Tesla, nor EV OEMs. It does not include any electric vehicle language and prevents indirect service center ownership along with sales type activities
Key changes:

(2) "Sell" or "selling" as it applies to a new motor vehicle means to engage in the business of selling, trading, leasing, or offering for sale or lease, negotiating, or otherwise attempting to sell, trade, or lease a new motor vehicle, or any interest in, or written instrument pertaining to, a new motor vehicle to a customer at retail.

(q) Own Directly or indirectly own a motor vehicle service and 2repair facility, except that a manufacturer may own a service and repair facility for the repair of manufacturer-owned vehicle sand, at the request of a fleet operator, for the repair of a fleet operator's vehicles as permitted under subdivision (p)(iii).

Edit:

Where is "electric motor vehicle manufacturer" defined?

It isn't I was looking at the wrong version.

 

[ThomasD]

So this could apply to all auto manufactures to sell direct to customers and open their own service centers and cut out the dealer network

 

[mongo]

So this could apply to all auto manufactures to sell direct to customers and open their own service centers and cut out the dealer network

Sadly, the version that could do that, for EV OEMs only, was not he one that passed. I was incorrectly referencing a proposed (and adopted) version, not the actual final bill.
The bill, as passed in the House, prevents Tesla (or any other OEM) from having indirectly owned service centers, and likely from performing the additional support in sales that the settlement allowed for.