'Pro-Tesla' bill in Pennsylvania gets Auto Alliance to end neutral stance

Thu, Jun 12 2014

Unlike dealership groups all over the country, one automaker group isn't taking issue with Tesla Motors being able to sell its electric vehicles through company-owned stores in Pennsylvania. But the idea of no limits on its number of stores? That's a problem.

The Alliance of Automobile Manufacturers – which has been neutral on the Tesla dealer fight thus far Â– is now squawking about a recent law in the Keystone State allowing the California-based company to sell cars through its stores there, Automotive News says. The group doesn't have a problem with the idea in general, but the fact that there's no cap on either the number of stores Tesla can operate or how many cars it can sell there is causing the Alliance to speak out on the issue. And while the Pennsylvania Automotive Association is okay with the new law, the Alliance is alleging a non-level playing field in favor of Tesla. Tesla declined to comment to AutoblogGreen.

The prospect of Tesla skipping over the third-party dealer franchise phase has garnered plenty of recent attention, especially from regulators and dealership representatives. Last month, the Federal Trade Commission (FTC) urged Missouri and New Jersey to change policies that would further prohibit car makers like Tesla from selling their vehicles directly to customers and without a third-party dealership. In April, FTC officials called called the prohibition of direct company-to-customer sales "protectionist" and "bad policy."

By Danny King