GM CEO Mary Barra on Tesla: ‘We just want a level playing field’

DETROIT – Shortly before Gov. Rick Snyder signed a bill deemed by some as “anti-Tesla” into law last week, General Motors released a statement throwing its support behind House Bill 5606, reported MLive.

“We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor Snyder to sign it,” read GM’s one-sentence statement, posted to its media webpage.

On Tuesday, as she announced another $300 million in capital investment in Michigan, including moving some production of the Chevrolet Volt from Mexico to Warren, GM CEO Mary Barra was asked about the company taking the stance on Tesla Motors.

“We’re not afraid of competition,” she said at Detroit Economic Club luncheon. “We just want a level playing field.”

HB 5606 primarily deals with fees auto dealerships charge for preparing documents, but had language added in a substitute from the Senate floor that alters one word of state law, essentially reinforcing a ban on selling cars directly to consumers in Michigan. According to a lawyer for Palo Alto-based Tesla, the proposed legislation also goes further and prohibits them from displaying their cars to potential customers.

Incorporated in 2003, Tesla began producing the Roadster electric two-seat sports car in 2008 with a base price of $109,000 in the U.S. It began selling the Model S sedan in 2012 with a starting price of $69,900. The Model S has shaken some of the competition, winning accolades such as Consumer Reports calling it the best car it has ever driven and the National Highway Safety Administration saying it’s the safest car it’s ever tested.

While it’s easily its largest production vehicle, as of September Tesla has only sold 47,000 units of the Model S globally. That pales in comparison to the production and volume of established manufacturers; General Motors for example sold almost 2.5 million cars in the third quarter alone.

However, when taken taken against GM’s main electrified vehicle, the plug-in hybrid Volt, it seems more competitive: There are 70,000 Volts on the road, according to GM.

Tesla, which sells its cars in at least 20 states, typically out of shopping mall storefronts, has already run into what some see as dealership-backed laws preventing its direct-to-consumer sales in places such as Texas, Arizona and New Jersey.