Tesla sues Michigan over direct sales

[Jludo]

Are there even two sides to this issue or is it as clear cut a case of crony capitalism as there is?



https://www.engadget.com/2016/09/22/tesla-sues-michigan-over-law-prohibiting-direct-sales/

 

[seedubs1]

This has more to do with the middle man than just saying big business is trying to screw over tesla. The big auto makers were made to go through dealers instead of going the direct sales route. Why is Tesla being held to a different standard and being allowed to sell direct?

The real answer is: government got out of control and stuck its god damn nose where it doesn't belong.....as usual. Direct sales should be allowed for ALL companies if they so choose via their business strategy. And government should keep its damn nose out of it.

Are there even two sides to this issue or is it as clear cut a case of crony capitalism as there is?



https://www.engadget.com/2016/09/22/tesla-sues-michigan-over-law-prohibiting-direct-sales/

 

[spec4]

No fan of Tesla but the above is very true.

 

[Jludo]

This has more to do with the middle man than just saying big business is trying to screw over tesla. The big auto makers were made to go through dealers instead of going the direct sales route. Why is Tesla being held to a different standard and being allowed to sell direct?

The real answer is: government got out of control and stuck its god damn nose where it doesn't belong.....as usual. Direct sales should be allowed for ALL companies if they so choose via their business strategy. And government should keep its damn nose out of it.

If I recall correctly though dealers and manufactures have come to a mutually beneficial equilibrium and its not in eithers interest to see direct sales. I don't think dealers hold that much power over manufacturers. I could be wrong though.

 

[nate77]

It comes down to auto dealers are a big part of the meat and potatoes of local, and state politics, they see direct sales as a huge threat.

 

[hoosierdoc]

so shouldn't the major automakers support Tesla's lawsuit?

Or are they so happy with their agreements with .gov and the dealers now?

This has more to do with the middle man than just saying big business is trying to screw over tesla. The big auto makers were made to go through dealers instead of going the direct sales route. Why is Tesla being held to a different standard and being allowed to sell direct?

The real answer is: government got out of control and stuck its god damn nose where it doesn't belong.....as usual. Direct sales should be allowed for ALL companies if they so choose via their business strategy. And government should keep its damn nose out of it.

 

[HoughMade]

Are there even two sides to this issue...

Yes.

https://www.indianagunowners.com/fo...ill-ban-direct-sales-indiana.html#post6388400

 

[seedubs1]

Correct. But it was instigated by the .gov in the first place. At this point, I would think the expense to a big auto manufacturer like GM to set up the infrastructure to support direct sales would be a non-starter. And as has been stated, the third party dealers have a lot of clout and lobbying power. In the end, this is all the governments fault. It's now not fair to Tesla nor the big auto producers, and one or the other will get screwed. The .Gov now will either suppress Tesla (and democracy) by not allowing them to sell direct to the public or show a double standard and allow direct sales, which will threaten the big auto manufacturers and dealers by allowing Tesla to potentially sell at less margin than the third party sales model that was forced on the big manufacturers.

If I recall correctly though dealers and manufactures have come to a mutually beneficial equilibrium and its not in eithers interest to see direct sales. I don't think dealers hold that much power over manufacturers. I could be wrong though.

 

[JTScribe]

Why aren't such restrictions viewed as unconstitutional regulations of interstate commerce? The states have no authority; it's an enumerated power of the federal government.

 

[Jludo]

Yes.

https://www.indianagunowners.com/fo...ill-ban-direct-sales-indiana.html#post6388400

Yea I don't see a decent argument for the other side. I hear luddites griping automation is taking their jobs (car salesmen)

 

[HoughMade]

Why aren't such restrictions viewed as unconstitutional regulations of interstate commerce? The states have no authority; it's an enumerated power of the federal government.

States can regulate commerce within their own borders. That the products come from outside their borders does not change that. Once it's in the state, it is within the state's reach.

I'm not saying that no-direct sales laws are a good thing, but it's a more complex issue than it appears on the surface.

As to the Tesla issue specifically, have fun having a Tesla towed a couple of hundred miles for service...or more. And if anyone thinks Teslas don't have service issues, you're not paying attention.

 

[Hohn]

After wickard v filburn, there is practically no limit to the Commerce Clause.

 

[HoughMade]

After wickard v filburn, there is practically no limit to the Commerce Clause.

He was talking about the opposite- the state's power to regulate something that had traveled in interstate commerce which, as long as the regulation only applies within the state, it can do.

 

[MisterChester]

This Michigan law totally messes with the free market. I support their lawsuit.