LANSING – Michigan politicians are trying to block new electric vehicle manufacturers from doing business in the state.
Although carefully worded to include any type of auto manufacturing company, the Michigan “Motor Vehicle Franchise Act” was created specifically to block Tesla from doing business there, an obvious favor to the dealerships. The law already includes certain restrictions on auto manufacturers, restrictions that limit their ability to sell and service their vehicles in the state.
The upside to this bill is that the language leaves room for creative solutions — such as the 2016 settlement brought by Tesla against the state. The Michigan Attorney General interpreted existing law to allow Tesla and other manufacturers certain sales-type activities at gallery locations.
A new house bill in Michigan, however, has been introduced by Representative Sheppard (R) to amend the law so that no manufacturer except Tesla can support the sales or service of their vehicles in Michigan. Although Tesla stands to gain from this, it would go against its core mission and I believe it would actually harm Tesla. The company already gets a lot of criticism and outright hate from some of its ardent critics.