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June 3, 2021

Hoffman Auto Group sues Tesla, East Hartford over showroom plans

Photo | Flickr/Austin Kirk A Tesla Supercharger.
By Zachary Vasile

Hoffman Auto Group, an East Hartford-based car dealer with operations across the state, is suing electric vehicle maker Tesla, East Hartford’s Planning and Zoning Commission and a development firm in a bid to block a planned Tesla showroom and service center in town, arguing the proposal violates a state law barring car manufacturers from selling directly to consumers.

"The Hoffman family of 10 auto dealerships is committed to defend Connecticut’s pro-consumer franchise system which fosters healthy competition on a level playing field," Hoffman Auto Group said in a statement. "By illegally circumventing the franchise system, the proposed Tesla 'service center with showroom' would deprive Connecticut consumers of many of the protections they currently enjoy."

According to a complaint filed in Hartford Superior Court by Hoffman lawyer Richard P. Weinstein, East Hartford’s Planning and Zoning Commission made procedural mistakes in granting a special use permit and site plan modification for a property at 300 Connecticut Boulevard to Insite Development Services, which is acting on Tesla’s behalf.

The filing states that Insite was “involuntarily dissolved” by the state of Illinois in March and therefore lacked standing to pursue a special use permit or site plan modification.

The complaint also alleges that Tesla would be violating a state law barring automobile manufacturers from selling directly to buyers if it followed through on plans to set up operations in East Hartford.

That statute has been fiercely contested by Tesla for years, and lawmakers have repeatedly put forward bills that would make an exception for electric vehicles in the interest of cutting carbon emissions, though none of those efforts has ever cleared the General Assembly.

Tesla operates on a direct-sale model, delivering cars to consumers with no franchised dealers involved. Some states permit this practice, while others place some limitations on how many showrooms direct-sale companies can operate and others, including Connecticut, ban it entirely.

Hoffman is asking the court to reverse and set aside the Planning and Zoning Commission’s decision and is also seeking an injunction precluding Tesla from selling new or used cars directly or indirectly in Connecticut.

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