Ohio Senate to vote on deal to let Tesla sell cars

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Updated: 4/01 2:19 pm

COLUMBUS, Ohio (AP) — Ohio senators plan to vote on a bill that would let electric car maker Tesla Motors operate three dealerships in the state.

The vote comes after Ohio auto dealers struck a compromise to allow California-based Tesla to sell its electric cars at existing stores in Columbus and Cincinnati. The company could open a third store, planned for the Cleveland area, but then no others.

No other automaker could operate manufacturer-owned stores in the state.

Ohio was among states proposing to block Tesla from setting up additional direct-sales galleries on the grounds that they undercut traditional auto dealerships.

Ohio auto dealers saw Tesla as a threat to a system in which nearly all dealerships are independently owned franchises that are separate from manufacturers.

The House must still consider the proposal.

 

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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