FTC Wants Michigan to Lift Tesla Sales Ban
The Federal Trade Commission (FTC) wants Tesla cars to be sold in Michigan.
The federal agency recently urged the state of Michigan to lift its Tesla sales ban, sending an 11-page letter to Michigan State Senator Darwin Booher, R-Evart. In the letter, three senior FTC staff members urged Michigan to drop its ban to automakers selling vehicles directly to consumers, noting that it amounts to “protectionism” for dealers and is “likely harming both competition and consumers.” The Tesla sales ban in Michigan was signed into law last October by Governor Rick Snyder and was backed by Michigan’s new-car dealership lobby.
SEE ALSO: Tesla Buys Michigan-Based Auto Supplier
Tesla has been fighting an uphill battle in various states across the U.S. for its direct-to-consumer sales approach since it began selling cars through its boutique showrooms. At least three other states have passed laws specifically targeting a Tesla sales ban including West Virginia, Texas and Arizona. Other states have limited the number of stores Tesla is allowed to open.
Despite the absence of dealerships in Michigan, 50 Teslas have been registered as of October 2014. The company recently acquired a Cascade Township-based auto supplier and tool-and-die manufacturer.
[Source: The Detroit News]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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