Photo by Flickr user Edsel Little via Creative Commons
Tesla's business model for selling cars from factory owned stores is still viable in Ohio after the Ohio state House Transportation, Public Safety and Homeland Security Committee didn't vote on a licensing amendment that would prohibit a "manufacturer or a subsidiary, parent, or affiliated entity of a manufacturer" from getting a license as a motor vehicle dealer in the state. Tesla Motors said earlier in the week that if the legislation, supported by the Ohio Automobile Dealers Association, was enacted it would prevent Tesla from selling cars in Ohio.
The amendment had bee attached to an unrelated bill requiring drivers to move over when approaching a road-maintenance vehicle. Committee Chairman Rex Damschroder, R-Fremont, Ohio, said the bill wasn't the appropriate place for the licensing amendment.
"A quick amendment stuck into another bill that's ready to move out of committee, sometimes that comes back to bite us if the amendment isn't properly vetted and all parties aren't heard. At this point, I don't think we've had quite the dialogue with the auto dealers, the auto industry and even with Tesla," Damschroder said. "It's my decision as chairman not to throw it in as an amendment at the last minute and let everybody try to figure out what it does later. "
The existing car dealers still plan on fighting Tesla's attempt to open up factory owned outlets that sell direct to retail customers.
"We will be interested in trying to present legislation that will protect the integrity of Ohio's licensing law," Tim Doran, president of the state's dealers association, said on Wednesday. "I think the legislature is interested in seeing a bill that is fully discussed and debated."
Tesla currently has a service center in the Columbus area and plans to open up two more factory showrooms later this month in Columbus and Cincinnati along with several Superchargers by the end of this year.
"We thank our supporters in Ohio and we look forward to continuing to do business in the state," Diarmuid O'Connell, Tesla's VP for business development, said in a statement after the developments in the state House.
O'Connell told the Automotive News earlier this year that dealerships around the country "object to the fact that we're trying to educate our consumers directly, sell them cars directly and service their vehicles directly because this runs entirely counter to the virtual monopoly they have in most states."
from The Truth About Cars http://www.thetruthaboutcars.com
Put the internet to work for you.
No comments:
Post a Comment