Changing Tactics, Tesla May Use Franchise Dealerships to Sell Cars in Michigan
While Tesla has spent the last several years fighting for the right to sell its cars directly to consumers, it appears the automaker is considering a change in tactic, apparently applying to sell cars in Michigan through a traditional franchise dealership.
Detroit News reports that Tesla originally submitted applications in November, filing follow-up paperwork in the last few weeks. Fred Woodham, a spokesperson for the Michigan Secretary of State wouldn’t say what the follow-up information was, but he did say a decision should be made within a month or two.
If Tesla’s application is accepted, it would finally be able to begin selling and repairing cars in the state of Michigan, something that is currently illegal under the state’s laws. The electric car manufacturer has had to fight hard to receive the right to sell its cars in many other states, but Michigan has been one of the most hostile towards allowing a direct sales model, even going so far as to rewrite its dealership laws to make sure Tesla couldn’t sell its cars in the state.
While it would appear to most consumers that states forcing automakers to sell their cars exclusively through dealerships is anti-competitive, dealer cartels have plenty of money to put lawmakers in their pockets. The bill Michigan Governor Rick Snyder signed to keep Tesla out of his state was even initiated by one such group, the Michigan Automobile Dealers Association?and backed by none other than Genera...
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