It’s a good day for auto dealers in the Sunshine State, and not so great for motorists who’d prefer a more direct route for buying a new coupe, sedan or SUV.
Gov. Ron DeSantis signed a measure (HB 637) banning most direct-to-consumer vehicle sales, solidifying the future viability of car-selling operations across the Sunshine State.
The measure, championed and authored by lobbyists representing the Florida Automobile Dealers Association (FADA), prohibits automakers from selling vehicles directly to buyers.
That restriction, which goes into effect July 1, was considered a direct threat to the business model of Tesla, an electric vehicle (EV) manufacturer that — unlike other car companies — sells its vehicles online and through retail locations rather than third-party dealers.
But as Florida Politics noted previously, lobbyists, including Taylor Biehl and Jeff Sharkey of Tallahassee-based Capitol Alliance Group, hammered out a deal adding language to the bill that should keep Tesla galleries open.
The change confirms manufacturers are authorized to hold a franchise dealer license for direct sales of EVs if the manufacturer is not otherwise prohibited under federal law. That carve-out apparently does not extend to traditional manufacturers such as GM, Ford, Honda and Toyota, all of which now make battery-powered cars.
HB 637 — which cleared both chambers of the Legislature with just two “no” votes, from Democratic Reps. Anna Eskamani and Angie Nixon — also bars manufacturers from reserving or incentivizing the sale or lease of vehicles, including electric or hybrid cars.
Refusing to provide a dealer with a supply of new vehicles by model, mix or color equitable to that of other dealers is forbidden too.
So is requiring dealers to set vehicle prices at rates manufacturers recommend, locking in the long-standing but tedious tradition of buyers having to negotiate with salespeople whose individual profits benefit from ballooned price points.
Jason Shoaf of Live Oak sponsored the measure in the House with support from fellow Republican Reps. Melony Bell, Patt Maney, Ralph Massullo and Brad Yeager.
Bryan Ávila carried its Senate analog (SB 712) with co-sponsorship from Ileana Garcia, a fellow Republican from Miami-Dade County.
As the measure advanced during Session earlier this year, numerous lobbyists met with its sponsors to fine-tune its language. Among them: Teye Carmichael and Matt Bryan of Smith Bryan & Myers, who represented JM Family Enterprises; Brad Burleson of Ballard Partners, who represented FADA; Ron Book, who represented AutoNation; Travis Blanton of Johnson & Blanton, who represented the Alliance for Automotive Innovation; Adam Basford and Brewster Bevis of Associated Industries of Florida; and Fred Baggett of Greenberg Traurig, who represented Ford Motor Company.
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