Tesla Motors Inc. struck a deal Wednesday with Ohio auto dealers that could allow the electric-car maker to ease a battle over its direct-to-consumer retailing model, at least for the near term.Under the agreement, Tesla would be allowed to keep operating two company-owned retail stores in the state, and open just one more. The deal requires approval from the Ohio state legislature. The proposed bill would bar all other auto makers from bypassing franchised dealers to retail cars.
As I recently wrote, the auto dealers don’t care about Tesla. It’s currently a niche high-end product.
What they’re really worried about is the idea of Tesla’s business model—selling direct to consumers. This Ohio deal, if approved by the legislature, confirms that. If Tesla sells direct to consumers? They don’t care. If Ford or GM do, then they’re history.
But why shouldn’t manufacturers be allowed to sell to whoever they want? Why does the auto industry have a government-enforced middle-man costing consumers more money and leaving those car brands’ images in the hand of sleazy dealers?
More below the fold.
Ohio auto-dealers score victory in Tesla battle
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