Tesla Motors Inc (NASDAQ:TSLA) and the Ohio Automobiles Dealers Association are on speaking terms for the first time, but there is still a rift between the two entities. Ohio dealers met with their Tesla counterparts on Tuesday to come up with a compromise on the topic of whether or not Tesla’s business model should be banned as demanded by the dealers association, says a report from Dispatch.
“It was a cordial meeting,” said Tim Doran, president of the Ohio Automobile Dealers Association. “I don’t think that anything new developed.”
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Tesla and dealers still miles apart
According to the Franchise auto dealers, Tesla Motors Inc (NASDAQ:TSLA) business model will affect the dealers, as the major brands like Ford and Toyota will abstain from following the current business model of selling their vehicles through dealers, who are independent of manufacturers.
Tesla’s vice president for business development Diarmuid O’ Connell said that he was thankful to the legislator, who took the task of holding a meeting, but was cautious over the dealer’s stand, who are not ready to accept Tesla’s model.
Tesla, on the other hand, is considering being soft on the issue. “I think we’ve acknowledged a really fundamental willingness to engage on this,” he said. Connell did not elaborate on the possible adjustments Tesla Motors Inc (NASDAQ:TSLA) would make.
Senate bill under review
An Ohio Senate panel is reviewing Senate Bill 260, according to which, an automaker manufacturer cannot own a dealership. The policy was designed back in December after hearing the concerns of the dealers.
In the wake of such policy, Tesla Motors Inc (NASDAQ:TSLA) could not open any new stores. The California based EV manufacturer has set up two stores in Ohio, at Easton and in Cincinnati. It is still waiting to get the license to open a store in the Cleveland area. Tesla is under orders from legislation not to open any additional stores.
Several lawmakers including Sen. Scott Oelslager, R-North Canton (also the chairman of the committee reviewing the bill) helped in organizing the meeting. No timetable for a possible vote on the bill has been set as of now. The issue has been the topic of discussion in the General Assembly since early December.
Tesla Motors Inc (NASDAQ:TSLA) is fighting similar cases in various other states including New York and New Jersey.