Tesla files constitutional challenge against car dealerships in Michigan
23 Sep 2016
Pioneering electric vehicle maker Tesla Motors has filed a constitutional challenge in the western District of Michigan, to the prevailing order of car dealerships.
According to commentators the move might herald major changes in the near future.
A commentator on the Tesla Motors Club forum going by the name ''Joel'' had posted the pdf of Tesla's challenge, which would give a clear of idea of the company's arguments.
Another commentator, provided some context, "First, the Michigan law in more or less present form dates from the days of William Milliken, a devout Republican and life-long Michigander from Traverse City. It was only a short time ago when the ''midnight amendment'' was attached because of the threat of Tesla.
"Many years ago GM, Ford and Chrysler had clout in Michigan, never more than when American Motors chief George Romney was Governor. However in recent years the power has shifted to more local issues with local car dealers exerting their diminishing clout aided by perhaps one of the more venal Governors in Michigan's colourful history... So, today we have the Federal Government clearly on the free trade side …."
Tesla's lawsuit names three Michigan officials - secretary of state Ruth Johnson, attorney general Bill Schuette, and governor Rick Snyder - on the grounds that the state was violating the electric vehicle company's right to sell Teslas directly from the manufacturer instead of through a dealer.
Under Section 445.1574 of Michigan's code, auto manufacturers are prohibited to ''Sell any new motor vehicle directly to a retail customer other than through franchised dealers, unless the retail customer is a non-profit organization or a federal, state, or local government or agency.''
Tesla claimed in its complaint that the law violated "the Due Process, Equal Protection, and Commerce Clauses of the Constitution as applied to Tesla, by prohibiting Tesla from selling its vehicles directly to consumers and by precluding Tesla from performing service and repairs within the State."