The state may not be at the top of Tesla’s priority list, but it nonetheless serves as a blow to the company’s battle against dealer franchise laws in a handful of US states, following on the heels of a victory in New Jersey.
The legislation was supported by Senate President Bill Cole, a franchised auto dealer with Honda, Nissan, Kia, Subaru and Hyundai showrooms in West Virginia and neighboring Kentucky. The West Virginia Automobile & Truck Dealers Association is also listed as one of his top campaign donors, according to FollowTheMoney.org.
The bill included wording that prohibits a manufacturer from acting “in the capacity of a new motor vehicle dealer.” The company had reportedly lobbied for an amendment that would allow non-franchisor manufacturers to sell directly at a limited number of stores, however the provision was rejected, the West Virginia dealer association’s president, Ruth Lemmon, said in a statement to Automotive News.
“I just can’t understand why if you want to be in the auto transportation business, why you wouldn’t want to be part of a proven model,” she opined.
Tesla has not yet publicly commented on the setback.
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