Tuesday, October 21, 2014

Michigan: Gov. Rick Snyder signs 'anti-Tesla' bill into law

(mlive.com) DETROIT, MI - Gov. Rick Snyder on Tuesday signed a bill his office described as bipartisan legislation that simply strengthens existing law as it pertains to automobile dealership sales in Michigan.

But electric car maker Tesla Motors says the legislation is a direct effort at shutting the California company and its unique, direct-to-consumer sales model out of Michigan.

HB 5606 was approved 38-0 in the Senate and 106-1 in the House of Representatives after being presented to state legislators as aimed at prohibiting car dealerships in the state from dictating fees they charge customers. With the legislation, dealerships can decide whether or not to charge certain transaction fees.

"This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan – because this is already prohibited under Michigan law," Snyder said in a letter to lawmakers that accompanies the signed bill.

Todd Maron, general counsel for Tesla, said that not only does it further ensure that company cannot sell directly to consumers in the state, it goes so far as to prohibit Tesla from displaying its cars to and communicating with potential customers in Michigan.

"These changes were put in at the last minute with nobody vetting them," Maron said, adding, "It looks like what they were trying to do is completely shut us out of Michigan."

In a blog on the company's website, Tesla derides the legislation as "A Raw Deal in Michigan."


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