Ekh
Elio Addict
Officially, it's a three-tier system. Manufacturer to distributor to dealer. Dealers must have at least one sample vehicle on hand and must also have a registered repair facility. In this case, I don't know who the distributor would be -- but it can't be owned by Elio Motors. Nor can the dealership. The need to insert two additional layers between manufacturer and customer plays hob with the economics of the Elio car by adding non-value-added cost to the vehicle.Franchise Dealerships .... that seems to be the hangup .... just wondering, why couldn't EM follow that provision in Ohio and "sell" the franchise to Paul Elio who would run it the same way as all of the company's other outlets .... the only difference would be on paper
Here is the relevant passage from Ohio State Law. No dealer's license shall be issued if the applicant
(11) Is a manufacturer, or a parent company, subsidiary, or affiliated entity of a manufacturer, applying for a license to sell or lease new or used motor vehicles at retail. Division (A)(11) of this section shall not serve as a basis for the termination, revocation, or nonrenewal of a license granted prior to the effective date of this amendment. Nothing in division (A)(11) of this section shall prohibit a manufacturer from doing either of the following:
(a) Owning, operating, or controlling not more than three licensed motor vehicle dealerships if, as of January 1, 2014, the manufacturer was selling or otherwise distributing its motor vehicles at an established place of business in this state. Such ownership, operation, or control may continue unless the manufacturer's motor vehicle operations are sold or acquired or the manufacturer produces any motor vehicles other than all-electric motor vehicles.
(a) Owning, operating, or controlling not more than three licensed motor vehicle dealerships if, as of January 1, 2014, the manufacturer was selling or otherwise distributing its motor vehicles at an established place of business in this state. Such ownership, operation, or control may continue unless the manufacturer's motor vehicle operations are sold or acquired or the manufacturer produces any motor vehicles other than all-electric motor vehicles.
Not to go round and round on this, the short version is -- Ohio buyers will have to buy their cars in other states and either have them shipped or pick them up at the point of sale. When this law was revised in 2014, a lot of people argued that it was purely to protect dealers, not consumers, but the Republican-controlled State House and State Senate, and Republican governor Kasich, all sided with the state automobile dealers's association. Result: no Elio distribution points in Ohio. Dealers: OK, but they can't be owned by Elio.
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