Ohio Auto Dealers Support Anti-Tesla Bill
March 19, 2014 2:30 PM
comment(s) - last by
They want to stop the automaker from building new store locations
Tesla Motors just can't catch a break with this auto dealership fight as New Jersey recently banned direct sales, and now
is looking to do the same.
The Detroit News
, Ohio auto dealers are supporting a bill that would stop Tesla from opening stores outside of its only two locations in Ohio.
Tesla currently has stores in Cincinnati and Columbus, where direct sales are allowed. The automaker was granted this authorization when Republican Gov. John Kasich -- through the Bureau of Motor Vehicles -- issued Tesla a license to do so.
But auto dealers believe that Tesla's direct sales model could branch out to many more locations, and eventually, other auto manufacturers could even follow suit. If this were to happen, auto dealers would be out of a job.
Ohio auto dealers took legal action against Tesla's two stores, but it didn't fall in their favor. So now, the dealerships are pushing for a new bill that would prevent Tesla from opening more locations.
“The bill would shut down our ability to grow in the Ohio market and, frankly, it’s just a first step to them shutting down our existing businesses,” said Tesla Vice President Diarmuid O’Connell. “This is the pattern we see in other states."
[SOURCE: The Car Connection]
According to auto dealers, they are necessary middlemen between auto manufacturers and consumers. They've insisted that their role provides fair play for consumers when it comes to warranties and service issues.
Tesla feels differently. Tesla CEO Elon Musk said that auto dealerships don't do a very good job at selling specialty cars like Tesla's high-end electric vehicles (Roadster, Model S). Hence, he's looking to run his own Tesla stores around the U.S. where he believes his cars will get a fair shot at being sold.
The problem is that auto dealers don't want to sell Tesla vehicles, and they're also barring Tesla from selling its own vehicles (with the exception of online, where customers can physically touch or test drive the EVs).
It recently came to light that
Ohio Sen. Tom Patton
(R-Strongsville) backed the bill -- called Senate Bill 260 -- which aims to prevent Tesla and any other automaker from "applying for a license to sell or lease new or used motor vehicles at retail." What's interesting is that Patton received at least $42,825 between 2002 and 2013 from state and national auto dealership owners, employees, and political action committees.
Auto dealers spent $86.8 million on state election races across the U.S. between 2003 and 2012. They also spent $53.7 million on federal campaigns. Tesla, on the other hand, has spent less than $500,000 on both state and federal politics.
The deep pockets of auto dealers is what Tesla believes is the cause for the recent direct sales ban in New Jersey. Earlier this month, New Jersey Gov. Chris Christie’s administration
proposed the new rule
, which requires a person to have a franchise agreement with an auto manufacturer in order to be granted a license to sell.
Then, last week, the New Jersey Motor Vehicle Commission voted in favor of the ban of direct auto sales. Tesla already operates two stores in New Jersey, and had plans to open more before this new rule.
wrote his frustrations
in a blog post titled, "To the People of New Jersey" on the Tesla Motors website. Musk said Christie's "protection" of consumers is similar to that of the mafia, and even brought up the Bridgegate scandal.
The Detroit News
This article is over a month old, voting and posting comments is disabled
RE: Thieves will be theives
3/20/2014 9:58:28 PM
This isn't Free Market at all. This is just outright
The problem is the current political culture. Many in Govt believe they have every right to piss your money away, help their buddies, special interest groups, do favors for "campaign contributors" without consequence. There is this culture where they see themselves as above everyone else.
The only way to fix political interference of the market is for the public to be politically aware and create a political culture that is toxic to questionable behavior. It puts every politician on a field where they have to do well by the people. Even the bad politicians. (Have no choice but to be good).
The biggest folly is the belief that if one votes the "right person" in, everything will be fine. The problem is not the people, its the culture of politics.
Its normal human behavior to act poorly when one believes they can get away with it. You see it with children, teenagers, activists, and politicians.
"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
Tesla CEO Elon Musk Attacks New Jersey Gov. After Direct Auto Sales Ban
March 17, 2014, 12:50 PM
Ohio Senator Accepts Money from State, National Auto Dealerships; Fights Tesla with New Senate Bill
February 14, 2014, 3:30 PM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Most Popular Articles
As iPad Sales Wane and Watch Flops, iPhone Saves Apple's Profit With Its Heroics
July 22, 2015, 6:13 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Microsoft July 29 Windows 10 Launch: Freebies, Rollout, and What's Next
July 21, 2015, 2:40 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Quick Note: Apple Watch to Get Brick and Mortar Boost From Best Buy
July 27, 2015, 3:00 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information