Basic Motors earlier this month sent a letter to Ohio Gov. John Kasich expressing concerns into whether the state was going to permit electrical-vehicle maker Tesla Motors Inc. to broaden past its 2 Ohio storefronts.
Ohio is between states proposing to ban Tesla from setting factory dealerships. Dealers argue that Tesla’s direct-sales model weakens traditional dealerships.
“We realize discussions are ongoing over legislation which could give a broad exemption for a single producer, Tesla Motors Inc., to circumvent long-established legal precedent on how new motor cars are marketed, sold and serviced in your state,” wrote Selim Bingol, GM’s senior vice president of global communications and public policy.
Merely place, GM is asking Ohio to oppose this initiative on the grounds that it would “essentially permit Tesla to compete under a totally various set of guidelines.”
And it’s not alone in its stance.
Last week, New Jersey officials, with members appointed by Gov. Chris Christie, voted unanimously to bar any kind of direct automotive product sales in the state.
Tesla has also drawn opposition from state dealers and associations that signify them.
Joe Cannon, a lobbyist for the Ohio Automobile Dealers Association, in testimony final week, informed Ohio lawmakers that the choice opens the door for all companies to follow the very same path, the Related Press reported.
“This selection has critical implications for each our dealers and customers,” Cannon informed the Senate Finance Committee. “From an market point of view, our members have created substantial investments in their firms, workers and communities across the state.”
Most recently, an Arizona Senate committee pushed forward a bill that would enable the automaker to sell its autos right to consumers.
Arizona was named 1 of the top contenders for Tesla’s planned gigafactory to make lithium ion batteries. The factory is estimated to cost about $ 5 billion and ultimately use about 6,500 individuals.
Yahoo! Autos on Thursday reported on the GM efforts in Ohio.
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