IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 21 Oct 2014 | Removal date: open ended
Still in force

Import-related non-tariff measure, nes

Several states in the United States have enacted legislation aimed at restricting direct sales of automobiles to consumers. These laws, which are backed by organizations representing car dealers, are aimed against the direct-sales modeled pioneered by the U.S. producer Tesla Motors (a manufacturer of electric vehicles). The same principle applies in general, however, and thus would prevent the direct sale of any foreign-produced vehicle to U.S. consumers.
One example of this trend is House Bill 5606, which Governor Rick Snyder of Michigan signed into law on October 21, 2014 (see http://www.michigan.gov/snyder/0,4668.7277-57577_57657-339774--,00.html). The law requires that auto manufacturers sell vehicles solely through franchised dealerships. The Federal Trade Commission sent a letter on May 11, 2015 to leaders in the Michigan state legislature, urging that they reconsider the matter. According to media reports (http://www.detroitnews.com/story/business/autos/2015/05/11/ftc-michigan-tesla/27122673/), three senior FTC staff members said that the law amounts to "protectionism" for dealers, and is "likely harming both competition and consumers."
The map below, which is also available at http://www.mojomotors.com/blog/where-can-tesla-sell-cars/, summarizes the status of these laws.
 
//www.mojomotors.com/blog/where-can-tesla-sell-cars/'
 
 
 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other

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