There’s an odd regulation Democrats and (mostly) Republicans have enacted in five states — and the reason for its enactment is still unclear.
Consider this: You want to buy the latest iPhone 6. Today, you can go to your nearby Apple retailer and pick one up directly from the company. In this instance, the manufacturer (Apple) is also the retailer. There are many companies like this, which both manufacture their goods and then sell them directly to consumers, either online or at a physical location.
But in five states it’s illegal for one type of manufacturer (in this instance, an automobile manufacturer) to sell directly to consumers. Most of the automobile industry sells its stock through licensed dealers. Manufacturers sell their automobiles at wholesale rates to dealers, who then mark up the price of the vehicles and sell them to consumers. You wouldn’t necessarily walk up to a General Motors plant and pick up a Cadillac. That’s just not how it’s done.
In Texas, Arizona, New Jersey, Maryland, and now Michigan, politicians are advancing protectionist policies that ban consumers from buying directly from automobile manufacturer — namely Tesla, the electric car company founded by billionaire inventor and investor Elon Musk.
The Washington Post has the story:
What’s good for General Motors dealers is good for America.