Crony capitalism is deep in the DNA of both major parties. Republicans do it. Democrats do it. This is a case in point.
GM is a cronyism vortex. The closer one gets to the company the stronger the crony force is. Taxpayer dollars disappear into it and are gone forever. Common sense too. The free market and genuine innovation? They long ago passed over the event horizon.
We’re not letting Tesla off the hook. It’s got all sorts of cronyism issues associated with it. But it is absolutely time to kill the dealership retail car model and we are glad that Tesla is doing what it can to hasten the death of the model. Dealerships simply make no sense for the consumer.
But localities generate lots of taxes from car lots and the families which locked in exclusive contracts to sell vehicles long ago are not about to give up their cash cows anytime soon.
General Motors declared support for the law, which they insist makes sure all car manufacturers follow the same rules. Funny, they could also accomplish the same by completely dumping the regulations, which protect car dealerships for no rational public purpose. Remember the rule: If some big business claims a law will create a “level playing field” in the marketplace, you can count on it favoring them at the expense of somebody else. Needless to say, Tesla isn’t impressed: