This is a law that has needed changing for a long time. There is no reason for the government to enforce a distribution model. For some manufacturers, the dealer/distributor model is great (this applies in all areas of business). In other areas, the producer may want to take on the distribution themselves. There is no doubt that car dealers provide a valuable service, but there’s no reason to think that manufacturers couldn’t do it themselves if they want to spend the money. Either way, the government should let the businesses and market decide.
Fisker said Foxconn has discretion of where it will build vehicles in North America for his eponymous company. But, the ban on direct sales makes Fisker less excited about the cars that will bear his name being put together in the Badger State.
“The one sticking point for Fisker — now, this is still Foxconn’s decision — but the one sticking point for me would be that I don’t want to start producing a car in a state where I can’t sell my car direct,” Henrik Fisker told Alan Ohnsman of Forbes. “If they change those (rules) I think they will be in the lead, but right now they’re not.”
Simon Sproule, senior vice president of communications for Fisker, told the online progressive news outlet UpNorthNews regarding the issue: “We are going to be investing with Foxconn a lot into this project, and we want to be building cars in a state that will allow us to sell those cars.”
Defenders of the law, including the Wisconsin Auto & Truck Dealers Association, say the ban on direct sales opens up more job opportunities and protects pre-existing automobile dealers.