The Globe and Mail reports in its Thursday edition that Tesla Motors may get the
last laugh on Michigan's protectionism.
A Reuters dispatch to The Globe reports that the home state of General Motors,
Ford and Chrysler on Tuesday
revised a law to ensure the
rival California automaker cannot sell its electric
vehicles directly to customers. Reuters says it is
a rich decision for an industry
with a history of lobbying for
freer trade. Reuters believes a groundswell
against the farcical dealer model
should eventually win the day.
Michigan
is the fifth state to protect
auto dealers.
The law signed by Michigan
Governor Rick Snyder is even more
egregious than ones enacted elsewhere.
First, Michigan
already bans an automaker from
selling cars "other than through
its franchised dealers."
Legislators, however, quietly
removed the word "its." The law appears designed to help
dealers avoid the prospect of Tesla
taking its case to the state
Supreme Court. Michigan's law may prevent
Tesla from even opening information-only stores, something
no other state has tried.
GM publicly supported the restrictive
proposal. The hypocrisy
is all too blatant. GM has long pushed for lower
barriers overseas.
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