Opponents: ‘Tesla bill’ would harm consumers, workers

An ongoing effort to allow the direct sales of electric vehicles in Connecticut faced resistance Tuesday from traditional car dealerships and unions representing auto technicians, who said the legislation would offer special exemptions to companies like Tesla and Rivian at the expense of their workers.

Most new electric vehicle manufacturers rely on a direct-sales model that avoids traditional franchise dealerships used by automakers such as Ford, General Motors and Toyota.

Connecticut, however, has a “franchise law” similar to those on the books in the majority of states, which require manufacturers to sell their cars through third-party dealerships. Legislation before the House would create an exemption for electric vehicle manufacturers without an existing presence in the state, benefiting companies like Tesla and Rivian.

During a news conference Tuesday morning, opponents of that bill said it would undermine Connecticut’s consumer protection laws and threaten the jobs of the nearly 14,000 employees of car dealerships in Connecticut — pointing to allegations of union-busting by Tesla.

“I don’t see the need to do a Tesla bill,” said state Sen. Julie Kushner, DDanbury, a former regional director for the United Auto Workers union. “I don’t see the need to advance Elon Musk, who is already ruler of the world.”

The news conference followed a similar event last week hosted by advocates for the bill, who accused car dealerships of using discriminatory lending practices and hidden fees to take advantage of minority customers.

The sponsor of the bill, state Sen. Will Haskell, D-Westport, has also argued that any brick-andmortar sales locations set up by electric car makers in Connecticut would still be subject to the same consumer protection and “lemon” laws that apply to traditional car dealerships.

In addition, despite Tesla being the most-popular electric car in Connecticut, customers must currently travel out of state to purchase or service their vehicles, supporters argue.

“My constituents who want to go electric and buy the most popular car on the market, they’ve got to drive all the way to Mt. Kisco, N.Y.,” Haskell said during a public hearing last month. “I think our state policies should make it easier, not harder, for people to go electric.”

Advocates for the dealership model argued Tuesday, however, that any barriers to Connecticut’s market of affluent car buyers were self-imposed by the manufacturers.

Brian Schneck, president of UAW Local 259, said franchise laws have been in place around the country for decades — Connecticut’s franchise law was originally passed in 1972 — and companies like Tesla could choose to follow the franchise model rather than pushing states to allow for direct sales.

“They knew that from Day 1, and they’re doing mission creep across the country, making an attempt to change the rules to favor their self-chosen business model,” Schneck said. “If Tesla is so confident in their product, and the other [electric car parts manufacturers] are so confident in their product, what do they fear about having franchise dealers? What’s the problem?”

Representatives for Tesla did not respond to a request for comment on Tuesday.

“The franchise dealer system simply will not work for Rivian’s business model, where vehicles are made to order and we’re ramping our production,” Leslie Hayward, a spokesperson for Rivian, said in an email. “As a company, we are innovating on not just the product, but also the customer experience. Furthermore, we know that the vast majority of the EVs sold in the United States are via direct sales — this is no coincidence.”

Previous efforts to enact a direct-sales model in Connecticut have failed in the face of opposition from car dealerships. The latest effort passed the Transportation Committee last month with mostly-Democratic support, though a few members crossed party lines during the vote.

Haskell said Tuesday that he did not have a timetable for when the legislation may come up for a vote on the House floor. The ongoing legislative session will end at midnight on May 5.

Getty Images People look at a Tesla Motors vehicle on the showroom floor at the Dadeland Mall in 2014 in Miami. Lawmakers in Connecticut want to allow the electric vehicle manufacturer to have the ability to sell its cars directly to consumers in the state.