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Tesla direct-sale proposal unfair to auto manufacturers

Decades ago, states across America passed a series of laws requiring the sale of motor vehicles through independent franchised car dealers, thereby making direct sale by manufacturers illegal.

As a result, today automakers are virtually the sole consumer product manufacturers in the nation forbidden from selling the very products they conceive, design and produce to their own customers. Sound fair? It is not.

Nonetheless, automakers built and invested in this mandated sales system that regulates every single aspect of the manufacturer-dealer relationship, right down to how much input a manufacturer can have over where and how its own products are marketed, displayed and sold.

There are aspects of the law governing the franchise relationship that add costs and inefficiencies; certainly pro-consumer systemic reforms are needed. But since all manufacturers are required to play by this same set of rules, no one automaker has a competitive advantage over any other. Until now.

Last month, the Connecticut General Assembly's Joint Committee on Transportation approved controversial company-specific legislation granting a lifetime exemption from franchised vehicle sales to a single manufacturer. That company is Tesla Motors. Now that is definitely not fair.

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Subaru Love Campaign

A $26,618.00 check for Connecticut Children's Medical Center Foundation through the Subaru Love Campaign at Mitchell Subaru on March 23rd.

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