State legislators in Indiana are now debating whether a legislation known as the “Kill Tesla” bill should pass.
House bill 5606 or “Kill Tesla” bill has been in the works from some time now. It is actually intended to protect auto dealers by prohibiting vehicle makers from restricting dealers when it comes to fees that dealers charge their customers. Last year, Michigan Governor Rick Snyder also explained, “This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan – because this is already prohibited under Michigan law.” In October 2, another provision in bill was added to “restrict” Tesla from directly marketing its cars to consumers. If the bill goes though, the company would be required to sell dealerships, just like other auto manufacturers.
General Motors (GM) has long been a supporter of the House bill 5606. In a statement issued last year, the company said that they believe the bill will “provide stability and support” for its dealers. At the same time, the bill will also help ensure that all auto manufacturers get to “compete under the same rules in the marketplace as other automobile manufacturers.” Right now, GM has come out with a completely electric Chevrolet Bolt to compete with Tesla’s fleet of electric cars. It has even tried to edge out competition by making sure that the car is available ahead of Tesla’s highly anticipated Model 3.
Over at Tesla, the company believes that GM is just trying to keep competition away. During a recent interview with Bloomberg, Tesla Vice President for Business Development Diarmuid O’Connell remarked, “This is nothing more than a protectionist effort by General Motors.” He also said that since GM had been able to decide on their business model “in the early part of the last century,” Tesla should also have the right to do the same.
Meanwhile, GM Regional Manager of Public Policy Jason Wetzel says, ” We welcome competition from any manufacturer.”