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Hagerty Employee

Michigan house bill allows Tesla to sell cars, other EVs get no juice

Michigan's ban on direct sales from an auto manufacturer meant that, for many years, buying a Tesla was much more of a pain in the Mitten than it was in some other states. Tesla sued to change the rules in 2016 and settled this January. With the passing of Michigan House Bill 6233 last week, Tesla can sell cars directly to customers. Except, not precisely—and, more importantly, the arrangement only applies to Tesla. We'll explain.


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Community Manager

Not anymore!  Thanks for catching that. 


If one MFG is broke lose all MFGs need to be set free of the franchise deals. 


The industry can not function with some bound to franchise deals they can not buy out while other new MFG are exploiting the lack of a franchise deal. 


Here is the 800 pound Gorilla in the room. China. If the Chinese MFG are permitted to import and sell with no franchise they will really under cut the prices of everyone. They would kill the American and other Import brands stuck in Franchise agreements the government forced on them decades ago. 


Yes to set MFGs free of the franchise could really hurt some dealers but in the big picture you can not afford to lose the other companies. 


It is not a matter of if but when the Chinese brands arrive and it is going to be painful to everyone and if they have low overhead it could be fatal to many MFGs. 


Some may think no one will buy Chinese cars but yet they all shop at COSCO and Walmart.