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comment by b_b
b_b  ·  3508 days ago  ·  link  ·    ·  parent  ·  post: Michigan Governor Rick Snyder takes a protectionist stance against Tesla

The real question isn't why are they keep Tesla out, but why does this law exist in the first place? Couldn't traditional manufacturers make more money by cutting out the middle man?

Edit: Here is a good summary of the history and reasoning. It seems like dealers were a good way to do things back when communications were slow and payment was difficult. Now they're just entrenched, and immovable because of their power. Big Three couldn't fight them if they wanted to, because the dealers would just stop selling their cars to squeeze them, so they have no choice but to support the status quo. Apparently GM sells some models direct in developing markets, and of course it makes their cars more affordable and more profitable. Go figure.