Bill allowing Tesla to open 3 outlets in Ohio passes committee

Article by Christian A., on March 27, 2014

An Ohio Senate committee has approved a bill that formally bars carmakers from selling directly to consumers, with the exception of up to three outlets for Tesla Motors Inc. The measure represents a compromise between Tesla and the Ohio Automobile Dealers Association, which had sought to bar Tesla from implementing its direct sales system in the state, according to state Senator Scott Oelslager, the committee chairman.

Tesla operates two Ohio stores in Columbus and Cincinnati, and will be allowed to set up a third as long as the carmaker isn’t sold or acquired and doesn’t build anything other than EVs, according to the bill, which also bars the state from issuing a dealer’s license to an carmaker except for Tesla. The bill moves to the full Ohio Senate for consideration. Dealers have sought to obstruct direct-vehicle retailing in states including New Jersey and New York, claim that such sales model violates franchise laws.

On March 11, 2014, New Jersey’s Motor Vehicle Commission -- composed of members of Governor Chris Christie’s cabinet and others appointees -- voted unanimously to block Tesla from conducting direct sales in the state. The compromise in Ohio will enable Tesla to continue educating shoppers about its offerings in its retail stores, which the carmaker thinks is needed to promote the new technology, according to Diarmuid O’Connell, Tesla’s vice president of business development.

“One could always hope for more, but I think that this gives us a sufficient base from which to grow and to advance electric vehicles in Ohio,” O’Connell told Bloomberg in an interview. Traditional franchise dealers contested Tesla’s direct sales model because it might have other carmakers to follow suit, thereby jeopardizing investments in their dealerships, according to Tim Doran, president of the Ohio Automobile Dealers Association. “Nobody’s happy with the solution, but it is a reasonable solution that allows predictability into the future for the dealer model,” Doran told Bloomberg.

Topics: tesla

If you liked the article, share on:

Comments

Recommended

The BMW M1 will be one of the most exclusive cars that will be showcased at the upcoming 2017 Pebble Beach Concours d'Elegance, alongside many other extravagant models. Firstly, there...
by - August 17, 2017
Aston Martin Vanquish Zagato makes its debut with a total of four variations including the Speedster and the Shooting Brake trims. As part of the limited edition model, the company...
by - August 17, 2017
Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 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