"Tesla bill not key to green future"
By Bradley Hoffman, William J. Palomba and Corey Shaker
April 24, 2021
The Tesla bill – Senate Bill 127 – once again is being debated at the state Capitol. This bill is about the environment, but also about exempting Tesla from having to follow any of Connecticut’s dealership laws.
The 270 Connecticut new-car dealerships protect consumers through franchise agreements by providing fair and encompassing warranties, guaranteeing state and federal safety laws are followed, providing the enforcement of the lemon and fair-lending laws, and establishing guidelines for safety recalls. S.B. 127 would allow Tesla to bypass these critical consumer-protection laws.
We recognize technology is changing, and we are all for giving consumers what they want. We are also open to new businesses, so long as those entities operate under the same laws as their competitors. Unfortunately, this piece of legislation eliminates that level of fairness, providing Tesla special status.
Across Connecticut, new-car dealers are fully committed to selling electric vehicles. Over the past few years, customers see that electric vehicles are reasonably priced, look great, are good for the environment, and can travel many miles. EVs are sold in Connecticut and driven in Connecticut. Volvo, Audi, Chevrolet, Ford, Mercedes-Benz, Nissan, Honda and other manufacturers have electric vehicles for sale. Cadillac recently announced plans to migrate to an all-electric platform by 2030. It is hard to imagine why Connecticut would create a law that would allow an out-of-state company to have special treatment, when the current system works well for consumers.
Tesla asserts its customers are tech-savvy and cannot be served by sales models employed at dealerships. This is untrue. If you want all the bells and whistles, you can find that in many models offered by dealers. If you want to buy a Volvo or other brand online, you can currently do that in Connecticut. Any franchised dealer in the state today has the ability to sell its product online, without the customer having to set foot in the store.
Tesla raises the issue of “range anxiety” for consumers. However, Tesla offers chargers only for their vehicles. If Tesla truly were concerned about the charging infrastructure in Connecticut and elsewhere, a good first step would be to enable Tesla charging stations to support all the EVs. Connecticut dealerships provide EV charging services to the public now, regardless of car brand. This service will continue to be enhanced as dealers continue to invest hundreds of thousands of dollars in Connecticut to help residents and those traveling through, regardless of the make of their EV.
Direct auto sales never have benefited consumers with lower prices, more convenience, or better service and maintenance. In Connecticut, a large, expansive network of locally owned retailers and service providers serve their local markets expertly. They are invested in the future sales and servicing of electric vehicles. They invest hundreds of thousands of dollars into their communities.
As we have argued in the past, it is patently unfair to require franchised dealers to compete head to head with companies that sell essentially the same product under a different set of rules. The Connecticut new-auto dealerships happily invite Tesla to join the Connecticut market through an existing dealership, which will keep the competitive playing field even.
Bradley Hoffman is co-chairman of Hoffman Auto Group (East Hartford, New London, Waterbury and West Simsbury). William J. Palomba is marketing manager of Blasius Chevrolet Cadillac (Waterbury). Corey Shaker is a partner with Shaker Auto Group (Thomaston, Watertown).