The bill allows Tesla to keep its existing stores in the Columbus and Cincinnati areas, and allows a third to open in Cleveland. It prohibits the company from opening any other stores.
The bill allows no other automaker to operate manufacturer-owned stores in the state.
Ohio was among states proposing to block Tesla from setting up additional direct-sales galleries on grounds they undercut traditional auto dealerships. Dealers saw Tesla as a threat to a system in which nearly all dealerships are independently owned franchises that are separate from manufacturers.
“This is a very good compromise,” said Diarmuid O’Connell, Tesla’s vice president for business development, who was present for the committee vote.
Dealers saw Tesla as a threat to a system in which nearly all dealerships are independently owned franchises that are separate from manufacturers such as Ford, General Motors and Toyota.
“It protects the integrity of the law,” said Tim Doran, president of the Ohio Automobile Dealers, referring to the state law that deals with licensing new dealerships.
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