% If you think this is fun, wait 'til the 2016 U.S. Pres. election! %
http://online.wsj.com/articles/gm-urges-michigan-gov-to-sign-anti-tesla-bill-1413912419 GM Urges Michigan Gov. To Sign Anti-Tesla Bill By Jeff Bennett Oct. 21, 2014 Gov. Snyder Needs to Act Tuesday on Bill That Bars Auto Makers From Directly Selling to Consumers General Motors Co. widened the rift between Detroit auto makers and Tesla Motors Inc., urging Michigan Gov. Rick Snyder Tuesday to sign the a bill barring auto makers from directly selling to consumers--a practice employed by the Silicon Valley electric car maker. GM and most other auto makers run the bulk of new-car sales through a dealership network. States have long protected dealers via franchise laws. Michigan’s legislature recently sent a bill to Gov. Snyder’s desk that further protects dealers, and Tesla has said the legislation unfairly targets their direct-selling method and limits their ability to market in Michigan. “We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor ... Snyder to sign it,” GM said in a brief statement. Tesla, in a statement Tuesday, said: “What’s good for GM’s customers is not necessarily good for Tesla’s customers. GM distorts the purpose of the franchise laws which are in place not to cement a monopoly for franchised dealers, but rather to prevent companies with existing franchises from unfairly competing against them.” Gov. Snyder has until the end of Tuesday to decide whether to approve or veto the bill that ultimately would ban the Palo Alto, Calif.-based electric car maker Tesla from selling cars in the state. A handful of Tesla parts suppliers have sent letters to Gov. Snyder asking him to veto the bill saying the ban could stop the auto maker from increasing sales. [© online.wsj.com] ... GM Urges Michigan Gov. To Sign Anti-Tesla Bill ... jardine-wm.com/gm-urges-michigan-gov-to-sign-anti-tesla-bill/ www.samachar.com/GM-Urges-Michigan-Gov-To-Sign-AntiTesla-Bill- okvxPjbfadh.html http://article.wn.com/view/2014/10/21/GM_Urges_Michigan_Gov_To_Sign_AntiTesla_Bill_k/ newsglobal.us/news/gm-urges-michigan-gov-to-sign-antitesla-bill http://www.finanzen.net/nachricht/aktien/GM-Urges-Michigan-Gov-To-Sign-Anti-Tesla-Bill-39594163959416 http://www.finanzen.ch/nachrichten/aktien/GM-Urges-Michigan-Gov-To-Sign-Anti-Tesla-Bill-39594163959416 www.wopular.com/gm-urges-michigan-gov-sign-anti-tesla-bill-0 economischnieuws.net/?p=56261 www.newsfiber.com/p/s/h?v=EL6CO8kUf0Ts%3D... latestnews.io/gm-urges-michigan-gov-sign-anti-tesla-bill ... http://en.wiktionary.org/wiki/no_duh http://www.bloombergview.com/articles/2014-10-22/want-a-tesla-start-voting Want a Tesla? Start Voting 7 OCT 22, 2014 By Edward Niedermeyer In a letter explaining his decision to sign a law banning Tesla's direct-sales model from his state, Michigan Governor Rick Snyder made it clear that he has nothing against the California-based electric-vehicle maker. "It appears that there has been a fair amount of misunderstanding over one aspect of this legislation," Snyder wrote. "This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan. That is because this is already prohibited under Michigan law." If there's any misunderstanding of Snyder's position, it's because he has staked out some highly tenuous middle ground. And no wonder: Snyder is stuck in some swirling political tides, with little to gain from taking either side of the debate over the future of auto retail. In most states, the opposition to Tesla's direct-sales retail model is spearheaded by the new-car dealer lobby, a powerful force in its own right. Michigan's automakers -- the state's biggest economic drivers -- have jumped on the dogpile. General Motors, the largest of these companies, came out in favor of the new bill just hours before Snyder signed it, arguing that it would "help ensure that all automotive manufacturers follow the same rules." Snyder clearly faces huge pressure from his state's automakers, but the political implications are not that simple. Tesla's battle against the franchise dealership system has attracted the interest of various free-market thinkers, making the company something of a surprising cause célèbre. With the United Autombile Workers union organizing against Snyder for his passage of Michigan's new "right to work" law, Snyder can't afford to alienate his free-market base by getting tough on Tesla -- especially at the bidding of GM, whose massive government bailout makes it a less-than-ideal champion of the even playing field. But the controversy over direct sales isn't nuanced enough to allow Snyder any real middle ground on policy, leaving him only rhetorical battles to win. “It wasn’t the Tesla bill,” Snyder told reporters. “It was a reaffirmation of strengthening existing Michigan law.” But although he is in favor of reaffirming Michigan's dealer-franchise law, Snyder was deliberately ambiguous in his letter about franchise law more broadly, arguing: A healthy, open discussion can and should be had over whether the current business model in Michigan should be changed. The discussion should consider, first and foremost, what is best for Michigan consumers, for expanding economic activity, and for innovation in our state. We should always be willing to reexamine our business and regulatory practices with an eye toward improving the customer experience for our citizens and doing things in a more efficient and less costly fashion. I urge the Legislature to engage in this discussion and to make it a top priority in its next session. But as University of Michigan Law School professor Daniel Crane has pointed out, this is the same legislature that sneaked the anti-direct-sales language into an unrelated bill, passing it almost unanimously and without debate. The idea that this body will take Snyder up on his offer to re-examine the law it just reaffirmed and have a public discussion about breaking down the franchise monopoly is laughable. Snyder's pro-consumer rhetoric is at odds with his closing of the loophole that allowed Tesla to begin direct sales in Massachussetts, proving that consumers face huge political obstacles in getting the new business models they crave. Like so many innovations, from alternative energy to autonomous cars, Tesla's direct-sales model will not simply win out because consumers demand it. Rather, consumers must move beyond voting with their pocketbooks and push governments to serve them, not the interests of established automakers. Though consumers wield immense power in choosing which cars to buy, establishing new rules requires old-fashioned political engagement. As Snyder's cynical move proves, consumers must organize to protect their goals or risk losing automobiles' bright future to the automakers that stubbornly embrace the status quo. [©2014 Bloomberg] ... http://www.freep.com/story/money/cars/general-motors/2014/10/17/michigan-verge-banning-tesla-stores/17386251/ Gov. Snyder signs bill banning direct Tesla sales by Greg Gardner, The Detroit Free Press October 21, 2014 [image http://www.gannett-cdn.com/-mm-/aa69b61a58877f298d86ac92de40c1212217c1ee/c=103-0-2231-1600&r=x383&c=540x380/local/-/media/DetroitFreePress/2014/10/16/dfpmichigananti-te.jpg People look at a Tesla Motors vehicle on the showroom floor at a Florida mall. Both houses of the Michigan legislature passed a bill that would require all automakers, including Tesla, to sell through franchised dealers. (Photo: Getty Images ) ] Gov. Rick Snyder has until today to sign a bill that would prevent electric vehicle maker Tesla Motors without a dealership network [image] (Photo: Associated Press) Governor Rick Snyder today signed bipartisan legislation aimed at discouraging Tesla Motors from selling its electric cars directly through company stores. House Bill 5606, sponsored by state Rep. Aric Nesbitt, also prohibits auto manufacturers from dictating fees franchised dealers can charge customers. The legislation allows individual auto dealers to make the business decision whether to charge the transaction fee. Snyder said direct sales of new vehicles is already banned in the state. This law will explicitly require all automakers to sell through a network of franchised dealers. Earlier today General Motors urged the governor to sign the bill. Snyder, who has boasted of making Michigan more hospitable for entrepreneurs, brings Michigan into a growing number of states that have raised obstacles to the California-based electric car company. That law didn't specifically mention Tesla, which started in 2003 and operates from a headquarters in Palo Alto, Calif., and from a former General Motors-Toyota plant in nearby Fremont. Tesla quickly issued its own statement, saying that what is good for GM's customers is not necessarily good for Tesla's customers. "Tesla is selling a new product with a new technology," the electric car maker said. "The evidence is overwhelming that a traditional dealer-based approach does not work for electric cars." Earlier this month, both houses of the Legislature passed a bill, backed by the Michigan Auto Dealers Association, that would require all automakers to sell through franchised dealers. "One of the things that was added to the bill was a section that states this law applies to all manufacturers. There's no creation of new rules," said Terry Burns, executive vice president of the MADA. "If a manufacturer wants to come in and sell cars in the state of Michigan, they should probably follow Michigan law." Todd Maron, Tesla's general counsel, said the Michigan bill goes beyond requiring sales through a franchised dealer to prohibit the use of a gallery to simply display cars and communicate in person with consumers. "People don't introduce bills unless they intend to change the law," Maron said. "Secondly, people don't sneak language in at the last minute unless they know it will be consequential." Dealers have tolerated and learned to cooperate with online car shopping services such as Edmunds.com and TrueCar.com. But a manufacturer who bypasses the traditional franchise system to sell directly, either in physical stores or online, is a threat, even a low-volume automaker like Tesla. Tesla has been selling through stores or galleries mostly in upscale shopping malls along the east and west coasts and in Pennsylvania, Ohio, Indiana and Illinois. The company's website shows a network of 60 locations in 23 states, but some of those can't sell directly. The company takes orders online. That approach undermines how franchisees have sold vehicles for decades, and they are fighting to stop Elon Musk, Tesla's cofounder and CEO, from establishing his own retail model. Musk wants to sell cars directly and has been fighting this legislative battle on a state-by-state basis. Specific language varies from one state to another, but more than half the 50 states have similar franchise laws to Michigan that prohibit manufacturers from competing with their franchised dealers. Texas and Arizona have so far prevented Tesla from selling inside their borders, Tesla has won court cases and opened stores in Massachusetts, Minnesota and New York. It only has galleries in Texas, Arizona, New Jersey and Maryland. Last month, the Supreme Judicial Court of Massachusetts ruled that Tesla can keep selling from a shopping mall in the Boston suburb of Natick next to stores selling apparel, jewelry and perfume. "This is an embarrassment for the State of Michigan and democracy," said Daniel Crane, a law professor at the University of Michigan. " When no one was looking, the car dealers slipped language into the bill that would strengthen their case against Tesla. They went to the Governor's office and told his staff they needed this change in order to avoid the result in Massachusetts, where the Supreme Court ruled against them and in favor of Tesla." While Tesla does not have a store in Michigan, it would like to open at least a gallery soon, said Diarmuid O'Connell, vice president of business development. There are 100 Tesla Model Ses registered to Michigan residents who either bought them online or drove to a store in Illinois, Indiana or Ohio. Next year the company plans to introduce the Model X, a more versatile and affordable alternative to its pricey Model S, which starts at about $75,000 and can run well above $100,000. [© freep.com] ... http://www.woodradio.com/articles/wood-news-125494/snyder-signs-measure-on-auto-sales-12886028 Snyder signs measure on auto sales, billed as 'anti-Tesla' The measure was seen as a swipe against electric vehicle manufacturer Tesla, which does not currently have a store or showroom in Michigan http://www.livingstondaily.com/story/news/politics/elections/2014/10/21/hune-pollesch-dispute/17649455/ High-end car dispute revs up in Senate race Wayne Peal October 21, 2014 [image] Joe Hune_01.jpg (Photo: GILLIS BENEDICT/DAILY PRESS & ARGUS) Democrats hope a dispute over cars most people could never afford will drive voters their way in the 22nd District state Senate race. Incumbent Sen. Joe Hune, R-Hamburg Township, has come under fire from his Democratic challenger in the Nov. 4 election for supporting, and amending, a bill that would affect Tesla, an electric car manufacturer whose vehicles occupy the $75,000-to-$100,000-plus price range. In its initial House version, the bill restricted automakers' ability to force dealers to charge different documentation fees to select customers. A slight amendment, made to the Senate version, would effectively prevent Tesla from selling vehicles through its own stores, rather than an established dealer network. The issue could have passed unnoticed expect that Tesla's company blog site last week blasted the bill as a "raw deal" for Michigan consumers. The bill, H.B. 5606, drew support from the Michigan Auto Dealers Association, a trade group representing dealers' interests. Noting that Hune's wife, Marcia, works for a lobbying firm, Democratic challenger Shari Pollesch has charged the senator with appealing to special interests. "Of course, Sen. Hune is playing special-interest politics," Pollesch said. "He supports a bill that prevents school board members here in Howell from voting on a teachers' contract because they have a relative who is a teacher, yet he has never excused himself from voting on a bill because his wife is a lobbyist." Howell Public Schools Board of Education members Mike and Kim Witt, a married couple, last year were prevented from voting on a teachers' contract because Mrs. Witt's sister was employed by the district. "People want to know if their legislators are working for their interests or special interests," Pollesch said. Hune, in a statement, said Pollesch and her supporters were dragging his family through the mud for purely political reasons. "She points to an amendment on a recent bill that I offered that pertains to automobile regulations in Michigan," Hune said. "The existing law, which has been on the books for over 30 years, says that all car manufacturers must be on an equal regulatory system, and my amendment simply clarified that all companies would be treated the same as everyone else." Terry Burns, executive vice president of the dealers' association, called the legislation fair and reasonable. "There's no creation of new rules," Burns said. "If a manufacturer wants to come in and sell cars in the state of Michigan, they should probably follow Michigan law," Burns added. Burns also said relationships like those of the Hunes' "are not uncommon in Lansing." But Todd Maron, Tesla's general counsel, said the Michigan bill doesn't just require sales through franchised dealers; it would also prohibit company representatives from merely displaying cars and discussing them with consumers. "People don't introduce bills unless they intend to change the law," Maron said. "Secondly, people don't sneak language in at the last minute unless they know it will be consequential." Hune, however, said nothing involving the bill or his amendment was done in secret. "The amendment I proposed was put forth in a public forum and was voted on twice by lawmakers in both chambers of the Legislature," he said. "Nothing was hidden." Based in Palo Alto, California, Tesla is perhaps best known for its CEO, entrepreneur Elon Musk, and its celebrity clientele. Seeking to create a new business model, Musk wants his company to sell high-price, low-volume cars through company-owned stores and has been fighting a legislative battle on a state-by-state basis to do so. Most states, like Michigan, generally prevent auto companies from competing directly with auto dealers that way. Legislators in Texas, Arizona, Colorado, North Carolina and Virginia have prevented Tesla from conducting direct sales in their states. But Tesla has won court cases and opened stores in Massachusetts, Minnesota and New York. Gov. Rick Snyder, has until today to sign the bill, including Hune's amendment, into law. 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