Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: Georgia legislature passes bill to allow Tesla to sell directly to consumers, (Mar 27, 2015)

By Greg Hammond, J.D.

Legislation that would allow zero emissions motor vehicle manufacturers, like Tesla, to open a certain number of dealerships to sell vehicles directly to consumers has cleared the Georgia legislature. The Georgia Senate passed H.B. 393 on Wednesday. The bill proposes an update to state motor vehicle dealer law.

The latest version of the bill carves out an exception to rules limiting the amount of interest a vehicle manufacturer may have in a dealership. Specifically, the bill would allow manufacturers of only zero emissions motor vehicles to operate up to five new motor vehicle dealership locations, to sell their vehicles directly to consumers, along with any number of vehicle repair locations, provided: (1) the manufacturer was selling or distributing its motor vehicles at an established place of business within Georgia as of January 1, 2015; (2) the manufacturer never sold its line of vehicles in Georgia through a franchised new motor vehicle dealer; and (3) the manufacturer has not acquired a controlling interest in a franchisor or a subsidiary and has not sold or transferred a controlling interest in such manufacturer to a franchisor or subsidiary.

The Georgia House passed the measure on March 13, 2015. The bill now goes to Governor Nathan Deal for approval.

Georgia is not the only state passing laws allowing zero emissions motor vehicles manufacturers to sell directly to consumers. New Jersey enacted a law last week, allowing zero emissions motor vehicle manufacturers, like Tesla, to operate a maximum of four locations within the state to directly sell to consumers. Those manufacturers are also required to own or operate at least one retail facility for servicing its vehicles.

News: FranchisingDistribution GeorgiaNews