Colorado lawmakers–mostly coming from a bipartisan group–are making a move that would enable automotive makers to sell their electric vehicles directly at their consumers.
This particular measure, which has been proposed last Thursday in a state assembly, would make an exemption to a Colorado law that indicates that automakers will be able to own, control, or operate dealerships that are selling their electric vehicles.
To discuss this issue, a Senate hearing is currently underway this Tuesday.
Tim Jackson, the Colorado Automobile Dealers Association president, said in an interview with the Automotive News that this move is not beneficial for both franchised dealers and consumers.
“We believe the franchise [model is] better for the industry, better for the factory and better for the consumer,” Jackson said. He further added that these franchised dealers would go against this legislative bill.
“The dealer is in the middle of that process to take care of the customer locally,” he continued.
State senators Kevion Priola (Republican), Chris Hansen (Democrat), and Democratic House Speaker KC Becker are the ones that are sponsoring this bill. In their definition, they labeled electric vehicles as “a motor vehicle that can operate entirely on electrical power.”
Hansen mentioned that this bill is already their second attempt. They had filed a similar proposal last year, but it was scrapped and rejected on the House floor.
According to the senator, the difference of the current bill is the provision of the legislation that enables any automaker that is into the business of electric vehicles to sell their units directly. The previous measure they made had limited the selling part to manufacturers that only focus on making electric vehicles.
“I really felt like we needed to have parity for all EV manufacturers, and that’s really the purpose of the bill,” Hansen said.
The bill also affects some parts of Denver.
“It’s not a bill about trying to take something away from dealerships,” the senator affirmed.
Michael Dunlap, the Schomp Automotive Group vice president for business development, expressed his “tremendous concern” about this new Colorado bill.
“When we can be there and take care of the consumer and react to their needs on an individual basis, that model serves a consumer much better,” Dunlap said.
Schomp Automotive Group has six dealerships that operate in Colorado.
For more information visit: New Colorado Bill Wants Direct EV Sales