GM Wants The Same “Set Of Rules” For Tesla In Ohio

In the battle between Tesla Motors and entrenched car dealers, reinforcements have arrived for the status quo in the form of General Motors. With the recent setback in New Jersey, the battlefield has shifted to Ohio, where another proposed ban on direct car sales awaits authorization.

According to Automotive News, GM’s Selim Bingol, VP of global communication sent a letter to Ohio governor John Kasich urging him not to allow Tesla to operate under “a completely different set of rules.” Ohio has become a place of contention after an underhanded effort to ban Tesla sales failed at the last minute, just like the successful New Jersey ban that snuck through at the last minute.

Meanwhile though, states like Texas and Arizona are changing their tune in regards to direct sales, as Musk’s proposed battery Gigafactory could bring thousands of jobs and millions in tax revenues to the sunny states. Most major automakers have remained quietly on the sidelines though as the Tesla saga unfolds, and GM ‘s letter is one of the first public statements on the matter.

If you need any further convincing that the dealership model only benefits car dealers and makers, well, here’s your sign.

Source: Automotive News

Ohio Republicans, Car Dealers Try To Ban Tesla Sales Again

An Ohio state senator, backed by local car dealers has for the second time introduced a measure that would ban the sales of the Tesla Model S. So much for the unfettered free market, eh?

Change can be scary. I get it, I really do, but these anti-Tesla laws are insane, plain and simple. Car dealership owners for see Tesla’s factory-owned dealer model as threatening their livelihood, and they’ll stoop to new lows to prevent Elon Musk’s electric car maker from setting down roots. In Ohio, a measure banning the direct sale of cars by manufacturers was already stricken down, but don’t expect dealers to go quietly into the night.

With paid-for Republican Tom Patton leading the way, the Ohio Automobile Dealers Association has re-entered the same bill for consideration to the state senate, albeit with the provision that Tesla’s two currently-operating stores remain open. Tesla is currently fighting similar legislation in at least four other states, with a mixed rate of success so far. Tesla sales are banned in Texas, but other markets have opened their doors to the electric car maker.

Dealership associations are fighting to preserve a model that has prevented major car makers from selling vehicles directly to consumers for decades now. Tesla is able to get around many of these state laws because there are no Tesla franchises to compete with, so dealer associations and their Republican cronies are scrambling to rewrite the laws in order to force Tesla to comply with the franchise model.

It’s absolute insanity, and the fact that a single company can be so blatantly and unfairly targeted should piss off anybody who considers themselves a car enthusiast. Regardless of your opinion on electric cars, they should be allowed to thrive or die on their own merits. Banning Tesla will hardly prevent excited enthusiasts from getting their electric sedans, one way or another, and it’s just another way that Tesla is disrupting the status quo.

Let’s hope Ohio voters see through these shenanigans, and put Patton out on his ass come the next election cycle.

Source: The Dispatch

Tesla Wins Vs Ohio Car Dealers, Amendment Defeated

Tesla Store opening in Westfield Mall, London, Oct 2013

Once more into the fray: Another state's car dealers are pushing for legislation to ban Tesla Motors from selling its electric cars directly to buyers.

This time it's Ohio. And legislators have unexpectedly moved up a hearing on the new law to today, according to a letter from Tesla Motors [NSDQ:TSLA].

The amendment was defeated.

Via Transport Evolved, we learn that Tesla Motors Club Forum member PokerBroker–who attended the hearing this afternoon—posted the following message:

“Ohio strikes down the amendment to SB137 which would limit Tesla’s direct sales and then passes the unamended bill 12-0."

The hearing takes place early this afternoon.

The Ohio Dealers Association is backing an amendment to Ohio Senate Bill 137--an unrelated bill that requires Ohio drivers to move left so as to leave an empty lane between themselves and highway maintenance vehicles at the side of the road,

Attaching the anti-Tesla amendment to an uncontroversial bill already moving toward adoption could see it become law more quickly than on its own.

2013 Tesla Model S

The proposed amendment would ban Tesla's practice of selling its electric cars directly to customers, who place their orders online with the company after seeing and learning about the Model S in company-owned stores.

That would require Tesla to transact its sales through independently-owned third parties, which is to say, traditional car dealerships.

The full text of the proposed amendment to bill 137 reads as follows:

517.12 Denial of license as motor vehicle dealer, motor vehicle leasing dealer, manufactured home broker, or motor vehicle auction owner.

(A) The registrar of motor vehicles shall deny the application of any person for a license as a motor vehicle dealer, motor vehicle leasing dealer, or motor vehicle auction owner and refuse to issue the license if the registrar finds that the applicant:
…
(11) Is a manufacturer or a subsidiary, parent, or affiliated entity of a manufacturer. applying for a license to sell or lease new or used vehicles at retail. Nothing in this division shall prohibit a manufacturer from disposing of vehicles at wholesale at the termination of a consumer lease through a motor vehicle auction. This division shall not serve as a basis for termination, revocation, or non-renewal of a license granted prior to the effective date of this provision.

Brand-new 2013 Tesla Model S delivery, July 2013; photo by George Parrott

Tesla suggests the amendment wouldn't just harm Model S (and future Tesla) customers in the state, but the state itself.

Ohio companies have supplied $10 million in parts and components this year to build Model S cars, the company says. And proposed Tesla facilities in Dublin, Columbus, and Cincinnati would employ 26 people and add $7 million in "direct economic activity" to the state.

The state is also part of Tesla's plans for its Supercharger fast-charging network--benefiting owners not just in Ohio, but in surrounding states too.

Tesla may turn to the same tactics it has used elsewhere to encourage legislators to make the right decision. In some states, it appears, a drive in a Model S is all that has been needed for some decision-makers to change their minds.

In fact, Tesla has already done exactly that: The Columbus Dispatch carries photographs of members of the Ohio legislature testing out the Model S--an 85 kWh Performance model, naturally.

If it has the same effect as test drives in other states have had, it could be a wise move indeed. Bloomberg reports that legislation against Tesla's direct selling in North Carolina was dropped completely after lawmakers and the state governor got behind the wheel. New York too dropped a similar bill.

While a similar tactic didn't work in Texas, lawmakers and politicians there too were reportedly impressed with the car.

Tesla has urged its Ohio owners and supporters to attend the hearing in Ohio Statehouse Room 122 at 1:30 pm Tuesday.

Source: Green Car Reports

2014 Honda Accord Hybrid Priced From $29,950, On Sale Oct 31

Honda has announced pricing for the 2014 Accord Hybrid, which will arrive in showrooms on October 31.

The Accord Hybrid starts at $29,155, with a mid-level EX-L model going for $31,905, and the top Touring model starting at $34,905.

A $790 destination and handling fee brings the total costs to $29,945, $32,695, and $35,695, respectively.

That makes the Accord a little more expensive than the hybrid competition.

The 2014 Ford Fusion Hybrid starts at  $26,995 with destination; a 2013 Hyundai Sonata Hybrid starts at $26,445; and its 2013 Kia Optima Hybrid sibling begins at a sticker price of $26,700.

The well-established 2013 Toyota Camry Hybrid starts at a cost of $26,950. Buyers willing to move from a midsize sedan to a hatchback might also consider the more fuel-efficient 2013 Toyota Prius Liftback, which starts at $25,010.

The 2014 Accord Hybrid has an EPA combined rating of 47 mpg (50 mpg city, 45 mpg highway), which puts the Accord at the head of its class.

The hybrid Accord's combined rating matches the Fusion's, and tops those of the Camry Hybrid (41 mpg) and both the hybrid Hyundai and Kia (38 mpg). The Prius gets 50 mpg combined.

MORE: 2014 Honda Accord Hybrid: Review

The Accord's powertrain consists of a 2.0-liter four-cylinder gasoline engine, a continuously-variable transmission (CVT), and a pair of electric motors. It's similar to the setup used in the Accord Plug-In Hybrid, but with a smaller battery pack that does not plug in.

One motor acts as a generator to recharge the battery during regenerative braking; the other motor powers the car either by itself or with assistance from the engine.

The Accord Hybrid offers three driving modes: "EV Drive," "Hybrid Drive," and "Engine Drive."

Production of the 2014 Accord Hybrid is already underway at Honda's Marysville, Ohio, assembly plant. The first examples will arrive in showrooms just in time for Halloween.

Honda to build 2014 Accord Hybrid in Ohio

Honda of America Mfg., Inc. will invest $23 million at its Marysville, Ohio auto plant to add production of the new two-motor Accord Hybrid Sedan (earlier post), scheduled to go on sale nationwide this fall.

This will be the third hybrid model built by Honda in the US and the first in Ohio. Honda Manufacturing of Indiana, LLC in Greensburg, Ind. was the first Honda plant in North America to build a hybrid vehicle, and currently produces both the Civic Hybrid and Acura ILX Hybrid models.

The Marysville Auto Plant is undergoing an expansion of 95,000-square-feet to house assembly processes and logistics specifically for production of the Accord Hybrid. The project includes lengthening the main assembly line to accommodate the unique hybrid production processes, and adding space for related parts receiving and sub-assembly operations. The project also will increase overall efficiency of the plant’s parts logistics operations.

One of four efficient powertrains for the Accord lineup, the new Accord Hybrid Sedan joins the 2014 Accord Plug-in Hybrid Sedan in incorporating Honda’s first two-motor hybrid system. Both the Accord Plug-In and Accord Hybrid team a new Earth Dreams Technology 2.0-liter i-VTEC 4-cylinder Atkinson cycle engine with a 124 kW traction electric motor that can function as an electric continuously variable transmission (e-CVT) and a 105 kW electric motor for power generation.

All of the conventional, gasoline-powered 2013 Accords now on sale in the United States are equipped with a new Earth Dreams Technology powertrain, either a direct-injected 2.4-liter 4-cylinder engine or a 3.5-liter V6 engine equipped with Variable Cylinder Management (VCM). Manufactured at Honda’s automobile engine plant in Anna, Ohio, both of these engines were named to Ward’s 10 Best Engines list for 2013.

In the last three years, Honda has announced investments at its Ohio manufacturing facilities exceeding $800 million. They include projects to establish on-site parts consolidation centers, renovate auto assembly and painting operations, and major investments at the Anna Engine Plant, as well as its transmission plant in Russells Point, to manufacture continuously variable transmissions (CVTs).

Recently, the transmission plant started a second phase of projects to expand CVT production. This new investment of $90 million includes an additional assembly line, and new aluminum die casting and machining operations. Investments at that the transmission plant in recent years now total $235 million.

Honda operates four manufacturing plants in Ohio, including auto plants in Marysville and East Liberty with the capacity to manufacture nearly 700,000 cars and light trucks per year. Its engine plant in Anna supplies engines and components to most of Honda’s auto plants in North America, with production exceeding a million engines per year. The transmission plant in Russells Point manufactures more than one million automatic transmissions per year, including the CVTs, for Honda’s North American auto plants.

In addition to manufacturing, Ohio is the center for vehicle engineering in North America. The R&D center in Raymond, Ohio, is Honda’s largest R&D center outside Japan.