Study commissioned by CT car dealers finds EV legislation could threaten jobs, economy

In a study commissioned by the Connecticut Automotive Retailers Association, the Connecticut Center for Economic Analysis (CCEA) predicts a proposed law that would let electric vehicle manufacturers sell directly to customers would stymie jobs and growth in the Constitution State.

In the May report, researchers from CCEA — which operates out of the University of Connecticut School of Business — said the proposed Senate Bill 127 could threaten more than 40,000 jobs and $430 million in state revenues between 2021 and 2040. 

“Bill 127 undermines reinvigoration of Connecticut’s economy and ought not to pass,” said the report authored by CCEA director and UConn professor Fred Carstensen and senior research fellow Peter Gunther.

Current laws in Connecticut bar motor vehicle manufacturers from selling directly to customers in most cases. The proposed law would allow direct-to-consumer sales for manufacturers that sell electric vehicles like Tesla and Volvo. 

CCEA’s study predicts retail margins could shrink by nearly 0.3% each year until 2035. General Motors has pledged to only sell EVs by that year, and if the other two big U.S. automakers — Fiat Chrysler and Ford Motor Co. — follow suit, car manufacturers could cut out Connecticut car dealers altogether, the study said.

“Connecticut fairs badly if that direction were to be followed by all exclusive manufacturers of EVs,” CCEA’s report said.

The Connecticut Automotive Retailers Association, which commissioned the report, was founded in 1921, and represents 270 new vehicle dealerships in the state.