Tesla Motors Co. is not allowed to carry out retails operations in Michigan; therefore they did not exhibit at NAIAS 2016.
Tesla Motors Co. did not set up a display at the 2016 North American International Auto show. Tesla did not come to Detroit this year since it is banned from having retail operations in Michigan.
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The comments were made by an executive of Tesla. Diarmuid O'Connell is Tesla's vice president of business development. O’Connell told MLive that shows are used to sell cars. Since the NAIAS 2016 is in Michigan, there is no reason for them to come.
Tesla was not allowed to sell its cars in Michigan due to a legislation signed by Gov. Rick Snyder in October 2014. Snyder argued at the time the bill only prohibits car dealerships from dictating fees they charge customers.
The fact that Michigan prohibits direct sales of automobiles does not comply with Tesla. O’Connell further called the law ‘anachronistic’ and ‘protectionist’.
O'Connell also noted that Snyder has invited a conversation to improving the law. Tesla executives have agreed to sit with Snyder to further the conversation. O’Connell admitted the law is not the only reason why Tesla is not at NAIAS 2016.
However the legislation is absolutely the main reason. O’Connell revealed Tesla will set up displays at the upcoming car show in Frankfurt and Geneva 2016.
Tesla is also prohibited from selling cars through retail stores in 20 other states. Michigan is not the only state where the law exists.
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The law bans car companies from having service centers and direct retail stores. In addition to Tesla, Jaguar-Land Rover, Bentley and Mini are also not at the 2016 NAIAS show.