North Carolina is considering banning sales of Tesla, the electric car, and other automakers that bypass dealerships to sell directly in the state
The Raleigh News & Observer reported that a legislative proposal, which is backed by the state’s Automobile Dealers Association, was unanimously approved by the state Senate’s Commerce Committee on Thursday. The bill, sponsored by Republican Sen. Tom Apodaco, is designed to prevent unfair competition.
Telsa sells its cars over the phone and Internet before delivering them to customers.
“They’re trying to insulate the dealer franchise model from any competition,” Diarmuid O’Connell, the vice president for Tesla’s corporate and business development, told the paper.
He visited Raleigh to make a presentation against the proposal to a state committee.
“It’s a protectionist move to lock down the market so we have to go through the middleman – the dealer – to sell our cars,” he added.
Well Oremus of Slate.com pointed out that Telsa is the only U.S. car-maker that sells cars directly to consumers.
In the bill, “using a computer or other communications facilities, hardware, or equipment” would be prohibited by manufacturers, reported ABC News.
Robert Glaser, president of the North Carolina Automobile Dealers’ Association, told ABC that North Carolina law stipulates that manufacturers can’t sell without a dealer and it has been that way since the 1970s.
“This bill doesn’t change the law at all. Somehow, they’ve been selling cars in North Carolina, you know, and I don’t know how it compares to that law,” he told the broadcaster.
He said the bill changes who qualifies as a dealer.
“We believe that Tesla, like all the other auto dealers in the state, should get a license, appoint a dealer, fall under the protection of the Department of Motor Vehicles, and sell cars,” Glaser said. ‘We just want them to play by the same set of rules that the other 7,000 dealers in the state do.”
