Bill to Let Tesla Sell in Connecticut Moves to Senate

The measure would carve out an exception in the state's franchise structure, letting the luxury car maker establish salesrooms to market cars directly to consumers.

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(TNS) -- Amid charges that Connecticut's franchising laws are antiquated, the House on Thursday voted to allow up to three new showrooms selling the electric-powered Tesla automobile.

The bill, which passed 116-32 after a three-and-a-half hour debate, was a compromise among lawmakers, Tesla and the state's car dealers. The bill moves to the Senate.

It would carve out an exception in the state's franchise structure, letting the luxury car maker establish salesrooms -- to go with its existing Milford repair facility -- to market cars directly to consumers. Under current law, car manufacturers can only sell through dealerships.

"We are moving toward new and exciting transportation initiatives out there when it comes to automobiles," said Rep. Antonio Guerrera, D-Rocky Hill, co-chairman of the Transportation Committee. "These vehicles are clean, do not run on gas, do not run on oil, and are environmentally safe."

At the start of the legislative session in January, the bill had been opposed by the Connecticut Automotive Retailers Association, who charged that auto dealerships are essentially independent agents for car owners, dealing with manufacturers on warranty and recall work.

"We are not trying to get rid of dealers," Guerrera said. "That is not what this deal means. We have to be respectful that innovation is there today. The technology is changing every day."

Tesla, with cars ranging in price from $71,100 to $106,200, has showrooms in about 30 states, but many other state's prohibit direct sales. A $35,000 version has been planned for later in the decade.

Guerrera said that Tesla represents the potential for millions of dollars in sales and taxes, along with more jobs for state residents.

Rep. Tom O'Dea, R-New Canaan, ranking member of the Transportation Committee who supported the bill, admitted "I have gone full circle on this legislation" over the last few months.

Diarmuid O'Connell, vice president for business development at Tesla Motors, said he was happy with the House vote.

"Tesla applauds the House of Representatives for their hard work and support for bringing new jobs, revenue and the world's most advanced zero-emission electric vehicles to Connecticut," O'Connell said in a statement. "We've worked with the dealers association, made compromises and now look forward to the Senate also recognizing that Tesla can bring revenue, ingenuity, and consumer choice to the state."

©2015 the Connecticut Post (Bridgeport, Conn.), Distributed by Tribune Content Agency, LLC.


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