GM Says it Supports ‘Anti-Tesla’ Bill on Gov. Rick Snyder’s Desk
DETROIT, MI – General Motors released a statement Tuesday throwing its support behind HB 5606, proposed Michigan legislation now on Gov. Rick Snyder’s desk that California electric car maker Tesla Motors calls “anti-Tesla,” reported Michigan Live. “We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate ... Read More »
DETROIT, MI – General Motors released a statement Tuesday throwing its support behind HB 5606, proposed Michigan legislation now on Gov. Rick Snyder’s desk that California electric car maker Tesla Motors calls “anti-Tesla,” reported Michigan Live.
“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,” reads GM’s one-sentence statement, posted to its media webpage.
HB 5606, which primarily deals with fees auto dealerships charge for preparing documents, 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.
“These changes were put in at the last minute with nobody vetting them,” said Todd Maron, Tesla’s general counsel adding, “It looks like what they were trying to do is completely shut us out of Michigan.”
Terry Burns, executive vice president of Auto Dealers of Michigan, told MLive last week after the proposed law easily passed through both state chambers that Michigan law already prohibits direct-to-consumer car sales, while Rep. Aric Nesbitt, R-Lawton, one of the bill’s sponsors, said the amended legislation has nothing to do with Tesla.
Tesla, which sells its cars in at least 22 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, New Jersey, and to some degree, Maryland, according to Maron. In those instances, he said dealerships have been trying to protect their traditional sales structure against Tesla’s unique model.
Snyder is expected to make a decision on the bill this afternoon.
More Industry

Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →