Direct-sales efforts heat up in states

Direct-sales bills at a glanceStates that have introduced legislation this year related to direct vehicle sales by auto manufacturers: Connecticut Would allow a manufacturer to receive a dealer's license if it does not have a franchise agreement with a new-car dealer in the state, if it builds only electric vehicles and only sells the vehicles it builds, and if it does not have a controlling ownership link to a manufacturer licensed as a dealer in the state. Status: Passed out of joint transportation committee on March 24. Awaiting a vote in the full Senate. Read the bill Georgia Removes language that caps manufacturers' ability to own or operate dealerships at five locations and only for automakers in operation as of Jan. 1, 2015. Status: Did not pass this year, but it remains under consideration and could be revisited in 2022, according to the Georgia Automobile Dealers Association. Read the bill Kansas Would allow an auto manufacturer to own or operate a dealership, with no language that they sell only electric vehicles among the provisions. Status: The bill did not pass during this legislative session, according to the Kansas Automobile Dealers Association. Read the bill Massachusetts Would allow an auto manufacturer to own or operate a dealership if it previously had no franchise agreement with a dealer in the state, with no requirement that the dealer sell only electric vehicles. Status: Introduced, not yet referred to committee Read the bill Nebraska Would allow manufacturers to own or operate dealerships if they do not or have not had "any franchisees representing such manufacturer's line-make of motor vehicles," and only sell "the line-make of motor vehicles" that it builds. Status: In committee Read the bill Nevada The bill will not advance this year because it did not pass out of a committee by the Friday, April 9, legislative deadline. New York Would allow a manufacturer that "manufactures or assembles exclusively zero-emissions vehicles" and "has no franchised motor vehicle dealer of the same line-make" in the state to operate direct-sales locations. Status: In committee Read the Assembly bill and the Senate bill Ohio Would allow a manufacturer to own, operate or control "one or more licensed motor vehicle dealerships if, as of [Jan.] 1, 2021, the manufacturer is a manufacturer of all-electric motor vehicles with corporate headquarters and manufacturing facilities in this state," according to the bill language. Bill sponsor said it is applicable to Lordstown Motors. Status: In committee Read the bill South Carolina Would allow "a manufacturer of only all-electric motor vehicles" to "sell, directly or indirectly, all-electric motor vehicles that it manufactures to consumers" in the state. Status: In committee Read the bill Texas Would allow a manufacturer to own or operate a dealership if it "manufactures or distributes motor vehicles powered only by electricity or battery" and "the manufacturer's line-make has never been sold in this state through an independent franchised new motor vehicle dealership." Status: Referred to committee Read the bill Vermont Would define a "non-franchised zero-emissions vehicle manufacturer" as one that manufactures zero-emission vehicles, "only sells or leases directly to consumers new or used zero-emission vehicles that it manufactures," and does not and has not sold through a franchisee in Vermont, among other provisions. The bill also defines what it means for a manufacturer that is not a non-franchised zero-emissions vehicle manufacturer to compete with a new-car dealer in the state. The Vermont Vehicle and Automotive Distributors Association said the bill is considered a compromise. Status: Passed the Senate; in House committee Read the bill Washington Would allow a manufacturer that "produces only zero-emissions vehicles" to own or operate a new-vehicle dealership "that sells new vehicles that are only of that manufacturer's makes or lines and that are not sold new by a licensed independent franchise dealer." Status: Will not pass this year, according to the Washington State Auto Dealers Association, though it's possible — but unlikely — that a similar provision could be added to a different bill. Read the bill Startup electric vehicle manufacturers are pursuing legislation in multiple states that would allow them to sell directly to consumers.

Direct-sales efforts heat up in states

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