Post by stump on Oct 22, 2014 23:47:12 GMT -6
I wanted to get the opinion of some car guys on this topic. I think I'm in the correct sub for this question.
It was brought to my attention that the Governor of Michigan (Rick Snyder) signed an amendment to Section 14 of Statute 445.1574 removing the word "its" from the statute. Original law, "(i) Sell any new motor vehicle directly to a retail customer other than through its franchised dealers, unless the retail customer is a nonprofit organization or a federal, state, or local government or agency." Who knew deleting one word could bring up so much frustration? Here's the letter that Governor Rick Synder wrote after he signed the bill addressing the concerns and misconceptions.
The point of this law is certainly a topic worth discussing. As I'm sure some people here either know of or are associated with an automotive dealership. Repealing this law would certainly have some drastic consequences such as many more dealerships closing as manufactures would see the current amount as an abundant overhead cost given them buying out the current fleet of operating dealerships.
This law has all but officially been labeled as the Tesla killer (over exaggeration but not as much as I'd like it to be). I don't personally believe this will get in Tesla's way, only add a speed bump to their growing market. Especially noting that the law was in place prior to Tuesday October 21,2014, only amended the removal of the word "its" which if anything helps Tesla by allowing them to sell their vehicles at other manufactures dealerships, although the likelihood of that happening is rather slim considering they don't want to open franchised dealerships nor would any dealership be willing to sell a competitors vehicles. But one question I have, is with the recent discussions of the amended law in Michigan, could Tesla circumvent the wording by selling their vehicles to a third party (say another company), having an intern drive the vehicle around California for a week or two, and then sell the car back to Tesla?
Here's the logic reasoning in my question.
Michigan defines a new motor vehicle as:
(1) "New motor vehicle" means a motor vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold only to a new motor vehicle dealer and for which the new motor vehicle dealer has not issued an original title. Source
They define a used vehicle as not a new used motor vehicle. Source
If I'm reading this correctly, than once the vehicle has been sold and title transferred to a new person (see definition below), than the vehicle is no longer new.
To qualify under the FTC's laws,
(2) Used vehicle means any vehicle driven more than the limited use necessary in moving or road testing a new vehicle prior to delivery to a consumer, but does not include any vehicle sold only for scrap or parts (title documents surrendered to the State and a salvage certificate issued).
Source.
So why not sell it to a third party, transfer the title, and pay an intern to drive it around for a few days to settle all disputes.
State of Michigan defines person as:
(3) "Person" means a natural person, partnership, corporation, limited liability company, association, trust, estate, or other legal entity. Source
It was brought to my attention that the Governor of Michigan (Rick Snyder) signed an amendment to Section 14 of Statute 445.1574 removing the word "its" from the statute. Original law, "(i) Sell any new motor vehicle directly to a retail customer other than through its franchised dealers, unless the retail customer is a nonprofit organization or a federal, state, or local government or agency." Who knew deleting one word could bring up so much frustration? Here's the letter that Governor Rick Synder wrote after he signed the bill addressing the concerns and misconceptions.
The point of this law is certainly a topic worth discussing. As I'm sure some people here either know of or are associated with an automotive dealership. Repealing this law would certainly have some drastic consequences such as many more dealerships closing as manufactures would see the current amount as an abundant overhead cost given them buying out the current fleet of operating dealerships.
This law has all but officially been labeled as the Tesla killer (over exaggeration but not as much as I'd like it to be). I don't personally believe this will get in Tesla's way, only add a speed bump to their growing market. Especially noting that the law was in place prior to Tuesday October 21,2014, only amended the removal of the word "its" which if anything helps Tesla by allowing them to sell their vehicles at other manufactures dealerships, although the likelihood of that happening is rather slim considering they don't want to open franchised dealerships nor would any dealership be willing to sell a competitors vehicles. But one question I have, is with the recent discussions of the amended law in Michigan, could Tesla circumvent the wording by selling their vehicles to a third party (say another company), having an intern drive the vehicle around California for a week or two, and then sell the car back to Tesla?
Here's the logic reasoning in my question.
Michigan defines a new motor vehicle as:
(1) "New motor vehicle" means a motor vehicle that is in the possession of the manufacturer, distributor, or wholesaler, or has been sold only to a new motor vehicle dealer and for which the new motor vehicle dealer has not issued an original title. Source
They define a used vehicle as not a new used motor vehicle. Source
If I'm reading this correctly, than once the vehicle has been sold and title transferred to a new person (see definition below), than the vehicle is no longer new.
To qualify under the FTC's laws,
(2) Used vehicle means any vehicle driven more than the limited use necessary in moving or road testing a new vehicle prior to delivery to a consumer, but does not include any vehicle sold only for scrap or parts (title documents surrendered to the State and a salvage certificate issued).
Source.
So why not sell it to a third party, transfer the title, and pay an intern to drive it around for a few days to settle all disputes.
State of Michigan defines person as:
(3) "Person" means a natural person, partnership, corporation, limited liability company, association, trust, estate, or other legal entity. Source