The Palo Alto, California-based Tesla has managed to win another skirmish with the franchised dealer groups, as the Pennsylvania state assembly allowed the electric carmaker to increase its retail presence there.
Tesla, which implemented a less than traditional direct sales practice for the retail of its company products, has been battling in many states the franchised dealers, which feel threatened by the practice of the company owning its own showrooms and service points.
In Pennsylvania, after last week the state’s Senate approved the new law, it was also passed now by the state House with an overwhelming majority (197-2), although ultimately Republican Governor Tom Corbett needs to sign it off to become law. The legislation allows Tesla to posses five stores in the state and also expand its number of service centers.
“We hope the process in Pennsylvania serves as an example for how productive cooperation can lead to a win for all parties involved, dealers and legislators included,” said Diarmuid O’Connell, Tesla’s vice president for business development.
The electric automaker, a startup not long ago and led by billionaire entrepreneur and co-founder Elon Musk, has been fighting auto dealer groups in many US states, although the Pennsylvania win is the latest in a series – last month it won an exemption in the New Jersey Assembly, the New York Governor Andrew Cuomo made a similar move, while earlier in the year the company also avoided bans in Ohio and Missouri.
by Aurel Niculescu
) - Thursday, July 3rd, 2014 - filed under Industry
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