Telsa agreement gives it three direct-sales stores in Ohio

Mar 27, 2014
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Telsa agreement gives it three direct-sales stores in Ohio

Tesla Motors' direct car sales have been a hotly contested issue in many states, Ohio among them. In December, an amendment being pushed by the Ohio Auto Dealers Association wasn't addressed by the Ohio House committee, which meant it would roll over into this year. For the time being, the auto maker has reached an agreement with the Auto Dealers Association to operate three stores in the state.

The deal was made today, and allows Tesla Motors to keep its two current direct sales stores in the state of Ohio, and to open one more. Any other auto maker is banned from direct car sales, and must sell through dealer franchises. The agreement also must be approved by the Ohio state legislature.

Neither Tesla nor the Ohio Automobile Dealers Association seem overjoyed at the agreement, but approach it as an amicable solution that stops the legal process for the time being -- and, of course, it is a better outcome than Tesla received in New Jersey.

Tesla's Vice President of Business Development Diarmuid O'Connell said, "I do think the Ohio solution points to a way dealers and Tesla can resolve this issue for the present, while letting both sides see how this develops. While on the margin it's disappointing that we don't have the ability to grow freely in Ohio, the compromise we achieved in the past 24 hours is sufficient for now."

SOURCE: Wall Street Journal


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