Michigan, the state where the US motoring capital Detroit resides, has seen its legislature change a few words in the law to protect the franchised dealers and ban Tesla’s direct sales.

The California-based electric automaker is thoroughly expanding overseas but faces a huge domestic challenge – its direct sales business hinders the traditional franchised dealers, with the latter vigorously contesting the automaker’s right to have proprietary showrooms.

Now, in the latest skirmish, Michigan is a step away from enforcing a ban on Tesla’s sales – the legislature passed the bill that vetoes the automaker’s right but to become law it still needs Gov. Rick Snyder’ signature.

The deadline to pass or dismiss the law is for today and Tesla has decided to rally these days the supplier base in support of its cause. Reaching out to support its pledge against House Bill 5606, certain Tesla suppliers from the state have sent letters to the Governor – asking him not to sign the bill.
According to Tesla spokesperson Alexis Georgeson, this year alone Tesla would get supplies worth $170 million in parts and services from companies in the state – it has 56 of them in Michigan. Naturally, a ban would affect the company’s business in the state, which would also impact the supplier base.

Via Automotive News


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