Deal reached between Tesla and state of Michigan to allow for direct sales and service centres

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In what is seen as a victory for Tesla, they have reached a settlement with the state of Michigan that would allow the California automaker to sell vehicles directly to consumers and open service centres in the state.

In 2014, an “anti-Tesla” bill was signed into law that barred them from selling directly to consumers through its website. The bill was largely seen as a way to protect Michigan’s big three automakers, General Motors, Ford Motor Company, and Fiat Chrysler, which sells vehicles through its franchised dealers.

Under the deal, prospective Tesla owners will still need to register the titles on their new Tesla in either the neighbouring state of Ohio, or in Canada, and then bring it back over the border to transfer the registration to Michigan.

Despite the bill becoming law in 2014, there are still thousands of Tesla’s on the road in Michigan. Most have been purchased and serviced out-of-state, but under the settlement Tesla will also be allowed to open Service Centres in the state.

The exact terms of the deal have not been disclosed as an official announcement is expected as early as Wednesday. This settlement could also lead to other states (19 of them) that have similar bans to follow suit and allow Tesla to sell directly to consumers.

h/t [The Detroit News]

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About Mike Flemming 784 Articles
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