Ohio dealers pushing for legislation barring Tesla stores

Article by Anita Panait, on February 18, 2014

Auto dealers in Ohio are renewing efforts to block Tesla Motors' factory store model. Specifically, the Ohio Automobile Dealers Association is pressing for a legislation that will amend the state's dealer franchise law to more explicitly bar factory-owned stores. Association leaders claim that Ohio's existing law should have banned Tesla from receiving licenses for its stores in Cincinnati and Columbus.

"The legislation reinforces what we've always believed the laws to be: that a manufacturer cannot hold a dealer's license to sell vehicles at retail," remarked Sara Bruce, the association's vice president of legal affairs. "If there was any misunderstanding of what the law is or what the definition of a new motor dealer is, this certainly does clarify it," she said.

An executive for Tesla reiterated that its stores in Ohio comply with current state law and that the carmaker properly applied for and received the licenses. Diarmuid O'Connell, Tesla vice president of business development, said that the carmaker’s approach doesn't hurt existing dealerships.

"We're not out to eviscerate the dealer business model," O'Connell told Automotive News. O'Connell remarked that they will simply introduce a new technology in the manner they think is most effective. The dealers association and some of its members are also considering whether to appeal the dismissal of their lawsuit against Tesla and the Ohio agencies in charge of issuing dealer licenses. 

A court magistrate dismissed the lawsuit on Feb. 6, saying that plaintiffs lacked standing to sue. Tesla executives and representatives from the Ohio dealers association testified Tuesday and last week on the proposed legislation at Ohio Senate committee hearings.

Dealers association also hopes to amend the statute in 2013 but failed. James Chen, Tesla vice president of regulatory affairs, told senators that passage of the amended bill would limit consumer choice, prevent inter-brand competition and allow Ohio dealers to establish a monopoly that current law bans.

Topics: tesla, dealership

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries