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Andrew M. Cuomo - Governor

Governor Cuomo Signs Legislation on Agreement Between Automobile Dealers and Tesla Motors

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Bill encourages innovation and strengthens auto dealer franchises


Albany, NY (June 16, 2014)

Governor Andrew M. Cuomo today signed legislation that resolves a dispute concerning how auto manufacturers can sell their products to consumers. The agreement, announced in March by Tesla Motors, the New York State Automobile Dealers Association and the Greater New York Automobile Dealers Association, allows Tesla Motors to maintain their five currently licensed retail locations in New York State. Additional Tesla retail locations will be established under a strengthened dealer franchise law.

 

“This agreement is a big win for New York State – one that proves the Empire State remains a leader in spurring innovation, supporting economic growth, and creating new opportunities for all,” Governor Cuomo said. “New York’s franchised auto dealers and manufacturers as well as innovative companies like Tesla are critical to our state’s economy, and this bill ensures that both sides will thrive and be able to grow the market for cutting edge zero emission vehicles. I want to thank our legislative leaders for supporting this agreement, which is a success for all parties.”

 

Lou Roberti, Chairman of the New York State Automobile Dealers’ Association (NYSADA), representing over 1,000 new automobile dealers, said, “This bill is a comprehensive reform of the Franchised Motor Vehicle Dealer Act and the law governing new motor vehicle dealers. The bill’s provisions ensure clarity and reasonableness in the relationship between motor vehicle manufacturers and franchised dealers. Critical to dealers, the bill sets standards for manufacturer-required dealership renovations. All of the State’s automobile dealer associations – ENYCAR, SADA, RADA, NFADA and of course, GNYADA, were involved in this effort. Despite the dealers’ efforts, this bill could not have been enacted without the support of Governor Cuomo. I want to thank the Governor for his leadership, and the many dealers who worked tirelessly on this bill.”

 

Mark Schienberg, President of the Greater New York Automobile Dealers Association, said, "We would like to thank the Governor and Legislature for supporting new car dealers, who are the small businesses that employ tens of thousands of people in communities across the State. GNYADA thanks the Governor for his leadership in bringing all the groups together and for fulfilling his pro-business promises."

 

Richard Schrader, the political and legislative director for NRDC NY said, “This legislation, which keeps New York at the forefront of electric car innovation, is great for the local economy, consumers, and the environment. The country and New York need more clean energy solutions for transportation, and I thank the Governor, legislature, and all parties on this agreement which will continue to deliver for this important industry.”

 

Senator Tom Libous said, “It’s important that we protect auto dealers and their thousands of employees across New York, but also welcome Tesla into the business community. We worked hard to reach a solution that works for Tesla, the New York State Automobile Dealers Association and the Greater New York State Automobile Dealers Association. As the Senate sponsor of this legislation, I appreciate their willingness to come together and compromise."

 

Assemblyman David Gantt said, "It is an exciting day for the automobile industry here in New York, with all parties benefitting from this legislation. This is a great step forward for Tesla and the State’s auto dealers, and I thank my colleagues in the legislature, the Governor, Tesla, the New York State Automobile Dealers Association and the Greater New York Automobile Dealers Association on this agreement, which will have a great benefit for drivers around the state.”

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