7 ms·
I think this might be the relevant change (contained in bill S-1 which was substituted in the Regulatory Reform Committee): "2 (i) Sell any new motor vehicle d
by Al__Dante 12y ago
I think this might be the relevant change (contained in bill S-1 which was substituted in the Regulatory Reform Committee):
"2 (i) Sell any new motor vehicle directly to a retail customer
3 other than through <del>its</del> franchised dealers, unless the retail
4 customer is a nonprofit organization or a federal, state, or local
5 government or agency. This subdivision does not prohibit a
6 manufacturer from providing information to a consumer for the
7 purpose of marketing or facilitating the sale of new motor vehicles
8 or from establishing a program to sell or offer to sell new motor
9 vehicles through the <del>manufacturer's</del> FRANCHISED new motor vehicle
10 dealers THAT SELL AND SERVICE NEW MOTOR VEHICLES PRODUCED BY THE
11 MANUFACTURER."
Link to the passage of the bill:
http://www.legislature.mi.gov/(S(zkgdwb45ddzp3imtvsszat55))/mileg.aspx?page=BillStatus&objectname=2014-HB-5606 http://www.legislature.mi.gov/(S(zkgdwb45ddzp3imtvsszat55))/...
Link to the substitute bill:
http://www.legislature.mi.gov/(S(zkgdwb45ddzp3imtvsszat55))/documents/2013-2014/billcurrentversion/House/PDF/2014-HCVBS-5606-14800.PDF http://www.legislature.mi.gov/(S(zkgdwb45ddzp3imtvsszat55))/...
- spacefight 12y agoSetup 100% Tesla-owned franchise. Sell through that.
- howeyc 12y agoI'm not sure you can do this. Isn't the point of the franchise that it's owned by someone else? For example, if McDonald's corporate opens a location owned by them, can they called it a "franchise" location?
- twosheep 12y agoI think you can have it owned by a different company but with the same leadership as the parent. Isn't this how liability shields work? Lots of different LLCs with the same people at the helm?
- cowsandmilk 12y agoIt is easy enough to define franchise as having different control than the parent. This is fairly standard. In fact, the bill has some language about franchises not being acquired, owned, or controlled by a manufacturer or any entity in which the manufacturer has a 45% ownership interest.
- lost_name 12y agoHonestly, if the loophole was that simple I would think they would have started with this.