House panel to vote on bill to ban direct automaker sales

INDIANAPOLIS (AP) - An Indiana House committee is set to vote on a measure to ban automobile manufacturers from selling directly to consumers.

The House previously sent the measure being considered Thursday to a summer study committee, but a proposed amendment would bypass the study and make the bill effective beginning July.

The Indianapolis Star (http://indy.st/1QdihkU ) reported the measure is backed by General Motors Corp. and could effectively shut down Tesla Motors Inc. in Indiana. Tesla currently sells its vehicles directly but is website says it has only one store in Indiana.

The company announced earlier this month it will unveil a zero-emission vehicle that would directly compete with an all-electric vehicle from GM.

GM argues state laws are unfair since it bans companies from selling directly if they have existing franchise dealerships.