LANSING – The showdown between Tesla Motors Incorporated and the state about whether the company can sell its vehicles in Michigan without a franchise dealer agreement, brewing for years, is on with the company filing a lawsuit Thursday.

Tesla filed the lawsuit in the U.S. District Court for Western Michigan one week after the Department of State denied the company a license to sell new vehicles in Michigan. Tesla sells its vehicles directly to customers, instead of through a dealership franchise like other automakers. The lawsuit names Governor Rick Snyder, Secretary of State Ruth Johnson and Attorney General Bill Schuette.

The company accuses the state of violating the Due Process and Equal Protection Clauses of the Fourteenth Amendment to the U.S. Constitution and the Constitution’s Commerce Clause.

The company also points to PA 354 of 2014, which was designed to make clear a company could not sell vehicles directly in the state and was generally seen as an effort to thwart Tesla.

Tesla is asking the court to prohibit the state from enforcing that law or any other law that prevents Tesla from selling vehicles directly in Michigan and order the state to award it a license to sell new vehicles here.

In a statement, the company said it preferred to address the problem in the Legislature. HB 5312, which would allow direct sales, has been sitting in the House Commerce and Trade Committee since February.

In the meantime, Tesla launched a charm offensive with lawmakers, allowing them to test-drive a Tesla car around Lansing. And in recent weeks, there was a big push by supporters for at least a committee hearing but substantial pushback from the auto dealers against holding one.

“Unfortunately, the local auto dealers and local manufacturers have made clear that they oppose any law that would allow Tesla to operate in Michigan,” Tesla said in its statement. “Given their position, the leadership of the Michigan Legislature recently informed Tesla that it will not even hold a hearing to debate the issue. As one leading legislator told Tesla: The local auto dealers do not want you here. The local manufacturers do not want you here. So you’re not going to be here. Tesla will continue to fight for the rights of Michigan consumers to be able to choose how they buy cars in Michigan.”

State officials had little comment on the lawsuit. Snyder’s press secretary, Ann Heaton, said only that if the Legislature wants to revisit the issue, the governor is open to doing so. Ms. Johnson’s spokesperson, Fred Woodhams, said the Department of State was simply upholding the law in denying Tesla a license, and a hearing officer agreed with the department.

Rep. Joseph Graves (R-Linden), chair of the House Commerce and Trade Committee, declined to comment.

However, Rep. Aaron Miller (R-Sturgis), the sponsor of the bill that would allow direct sales, said Tesla was right to sue.

“That’s the next logical step in the process. The legislative solution has not progressed anywhere at this point. I think that the courts will come down on the right side on this,” he said.

Miller said a hearing on his bill seemed extremely unlikely.

“The biggest challenge is how much this challenges the status quo, and it makes members uncomfortable,” he said.

A message left with the Auto Dealers Association of Michigan was not immediately returned. The group has said throughout the debate that if Tesla wants to sell vehicles in Michigan, it should follow the same law as other automakers and do so through a dealer franchise.

The case was assigned to U.S. District Judge Janet Neff.

This story was published by Gongwer News Service. To subscribe, click on www.gongwer.com