ANNOUNCED AS TEMPORARYNo
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.
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