Tuesday, Michigan governor Rick Snyder signed into law a bill that included language reinforcing a direct sales ban established over 30 years ago.
Wednesday? Detroit billionaire Dan Gilbert — best known as the majority owner of the Cleveland Cavaliers who penned a letter in Comic Sans typeface in response to LeBron James making the decision to play for the Miami Heat — had a few words to say about this decision.
According to Detroit Free Press, Gilbert was interviewing fellow NBA team owner Mark Cuban while guest-hosting an episode of CNBC's "Squawk Box" when he brought up the signing of HB 5606, now known as Michigan Public Act 354 of 2014, proclaiming the move "sends a bad message" as far as how much influence lobbyists — especially the auto dealer lobby — have over legislators. He added that Michigan dealers should "man up" and compete with Tesla instead of forcing the EV automaker to sell through a franchise network.
Morgan Stanley automotive analyst Adam Jonas agreed with Gilbert in a note to the financial giant's clients, stating it was only "a matter of time" that the issue of direct sales — and Tesla's link to them — would "likely mushroom into a national issue." He also said legislation protecting the status quo "exist to support the weakest link in the network."
On the other side, Detroit Regional Chamber of Commerce president Sandy Baruah believes Detroit "should have a business environment where all participants play by a common set of rules." The chamber also supported the signing, and says it looks forward to the further examination Snyder called for in light of the reinforcement.
The post Gilbert Calls Out Dealers In Wake Of Reinforced Michigan Direct Sales Ban appeared first on The Truth About Cars.
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