COLUMBUS, Ohio (AP) — 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 nearly all dealerships are independently
owned franchises that are separate from manufacturers. They had told
state lawmakers that 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.
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