“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,” a GM spokesperson wrote, without elaborating.
The bill makes a slight change to the language regarding dealer franchises, changing a restriction on automakers selling directly to customers “other than through its franchised dealers” (emphasis added), as described in the current laws, to “other than through franchised dealers,” which serves as a blanket ban.
Tesla has argued that the current franchise laws are only relevant to automakers that have franchisees, however dealer lobbyists — and now General Motors — have argued that Tesla will have an unfair advantage if it isn’t forced to establish its own franchise network.
“This anti-competitive behavior mirrors similar tactics in New Jersey and Missouri, where dealers have resorted to backroom political maneuvers to shore up their monopolies,” Tesla said in a recent statement. “The dark-of-night tactics highlight the dealers’ concerns that their arguments don’t stand up well to public scrutiny.”
The direct-sales model has received vocal support from both Republicans and Democrats, along with officials from the Federal Trade Commission. Automakers have generally stayed out of the battle, but the GM statement hints at a change in tactics.
Governor Snyder has not yet announced if he will veto the bill or sign it into law, but he is reportedly under a deadline to make the decision by the end of the day.
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