Tesla planned for Cleveland

Ohio Senate approves deal allow store, bill goes to House for consideration
Associated Press
Apr 2, 2014
Electric car maker Tesla Motors could operate three dealerships in Ohio under an amended bill unanimously passed by the state Senate on Tuesday.

Passage comes after Ohio auto dealers struck an agreement last week with the California-based Tesla that would allow the company to continue operating its existing stores in Columbus and Cincinnati.

Under the deal, Tesla could open one more store, which is planned for Cleveland. It then would be barred from opening others. The measure would prohibit other manufacturers from selling vehicles directly to the public.

Ohio had been among states proposing to block Tesla from setting up additional direct-sales galleries on grounds that they undercut traditional auto dealerships.

Dealers in Ohio saw Tesla as a threat to a system in which almost all dealerships are independently owned franchises that are separate from manufacturers. They told state lawmakers their businesses can only prosper when the law separates manufacturers and dealers.

The issue arose after the Ohio Bureau of Motor Vehicles issued a license to Tesla authorizing the company to open its own stores in Cincinnati and Columbus.

Senate President Keith Faber, a Celina Republican, said the agency’s move was out of step with prior precedent, and the bill seeks to address the decision.

Asked whether others in the auto industry have had problems with the state franchise law, Faber told reporters, “Other than Tesla and their unique brand of marketing, I have never heard a concern outside of Tesla”

The proposal now goes to the Ohio House for consideration.

Comments

Stop It

"Dealers in Ohio saw Tesla as a threat to a system in which almost all dealerships are independently owned franchises that are separate from manufacturers. They told state lawmakers their businesses can only prosper when the law separates manufacturers and dealers."

"Whaaaa!!! They get to sell honestly and take away our profits because their stuff is better than ours and will essentially make gasoline and diesel suckers obsolete. The oil companies and the US gov't needs to bail us out again because we suck..."

Nemesis

EXACTLY! The government has no business favoring one business model over another.

William Jeffers...

You're right. I don't have a business or poly-sci degree, but isn't this just the opposite of what a "free market" is supposed to be about? Look at what Walmart has already done to small businesses. Why is that okay, and this not?

Really are you ...

Go big government! Sarcasm, of course, don't mess with their gas tax money.

grumpy

When or if electric or any other fuel system catches on it will switch from a gas tax to a mileage tax. The gov't will simply mandate that all new cars must have something that tells the gov't how many miles you put on each year and in which state. You won't get away from some kind of tax for using the roads. The gov't will just tax something else. TANSTAAFL (there aint no such thing as a free lunch: Robert Anson Heinline)