Tesla and New York dealers reach deal allowing 5 stores for the EV maker

Article by Christian Andrei, on March 31, 2014

Tesla Motors Inc. and lobbying groups for New York auto dealers inked a deal that enables the EV maker to keep its five retail stores in the state, according to New York Gov. Andrew Cuomo. He said that the agreement reaffirms New York’s long-standing commitment to the dealer franchise system, while making sure that the state remains a leader in promoting innovative businesses and encouraging zero emissions vehicle sales.

Cuomo said in a statement that legislation will be initiated “in the near future” to implement the agreement. Mark Schienberg, president of the Greater New York Automobile Dealers Association, remarked that dealers approved the agreement partly to allow other provisions being sought in franchise legislation won’t be stalled by the Tesla dispute.

Schienberg said that while Tesla’s five stores in New York will be grandfathered in under the agreement, the carmaker cannot open more stores in the state. The agreement is expected to be adopted as early as next week and is aimed at thwarting other carmakers from opening their own stores.

The agreement is also aimed at tightening up the language prohibiting factory stores in New York’s statute, Schienberg told Automotive News, adding that the compromise works out well for dealers and consumers while opening up opportunities for Tesla. Schienberg remarked that he expects Tesla to eventually shift using the franchise system “if and when it starts selling in large volumes.“

In 2012, the Greater New York Automobile Dealers Association filed a lawsuit against Tesla and a state agency, claiming that the EV maker’s store licenses had been granted illegally. The lawsuit was dismissed in 2013 for lack of standing, with the association appealing the decision.

Topics: tesla, electric car

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

2017 is undeniably a very busy year for BMW. After introducing the new 4-Series, the German automaker has just released several new updates. In relation to this, BMW is also...
by - January 23, 2017
The renowned Shelby Super Snake is now 50 years old! As we greet the Super Snake a “happy birthday” or a “happy anniversary,” Shelby itself is celebrating half a century...
by - January 23, 2017
Nearly a year after the Subaru XV Concept was unveiled at the 2016 Geneva Motor Show in Switzerland, this SUV study is making its North American debut at the 2017...
by - January 23, 2017
It looks like Porsche will be very busy throughout 2017 as it prepares for the eventual launch of its two new models this year – the 2017 Porsche 911 GT3...
by - January 23, 2017
Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 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