Let's get Tesla to build their new factory near Austin (Howe: sales, real estate)

[maksidaa]

Originally Posted by drshdw

2 million is pocket change for Elon Musk, he's worth 12 billion..

My thoughts exactly. When you're planning at $6.5 billion plant, $2 million is pocket change. It's like saying you would buy something at $65 but you wouldn't buy the same thing if it was $65.02. Non-issue.

[scm53]

Originally Posted by drshdw

2 million is pocket change for Elon Musk, he's worth 12 billion..

But he isn't 1200 new car dealers in almost 300 cities across the state - and he hasn't been building those relationships for decades. No rep is taking his money and doing his bidding - this year - knowing he has six really pi$$ed car dealers in his district dedicated to tossing him out of office.

Not gonna happen.

[hoffdano]

Regardless of the battery plant, I hope Tesla is able to change the car selling laws in Texas. Those laws are labor protection schemes and have no place in Texas.

[scm53]

Originally Posted by hoffdano

Those laws are labor protection schemes and have no place in Texas.

How?

[verybadgnome]

I am still not convinced that Texas auto franchise laws benefit consumers over the good 'ol boys who want to sell F-150s by the dozen. I also detect bias in the following quote:

John Zwaicher, chairman of TADA, told the Senate Transportation Committee last week that there was no reason to grant a single company an exemption from state laws if that exemption would weaken the whole system by creating a potential for future exemptions to the franchise structure. He also questioned Tesla’s credibility and durability in the marketplace.

“The primary beneficiary of this bill would be Tesla, a California-based company reliant on government loans,” he said.

House Committee Gives Tesla Motors a Chance | The Texas Tribune

[Austin97]

autodealers are ridiculous and have a monopoly on the market. Manufacturers should be allowed to sell direct to consumers.

<<However, dealers say they can’t compete if, for example, a General Motors Co. (NYSE:GM) decided to cut them out and develop their own network or dealerships, because the automakers would have a price advantage. And dealers feel that allowing Tesla to develop its retail network would open the way for other carmakers to do the same.
>>

You mean customers would get lower prices? This quote says it all to me.

I dont care about tesla and wont own an electric car for awhile (I will most like go diesel).

Dealers need to learn how to offer something besides price.

Also the $2.5M donated is from 2011 only. So really it is 2.5M/year for 40-50 years and 40-50 years in the future. Red Mccombs is obviously on the side of the dealers.

One local startup, carorder.com, tried to sell cars direct to consumers during the dotcom boom but texas dealers blocked it (as well as dealers around the country) and that basically killed the company.

Car dealers are a lot like realtors and their former monopoly on MLS.

[scm53]

Originally Posted by Austin97

<<However, dealers say they can’t compete if, for example, a General Motors Co. (NYSE:GM) decided to cut them out and develop their own network or dealerships, because the automakers would have a price advantage. And dealers feel that allowing Tesla to develop its retail network would open the way for other carmakers to do the same.
>>

You mean customers would get lower prices? This quote says it all to me.

Car dealers are a lot like realtors and their former monopoly on MLS.

#1. Do you really think that the manufacturers would offer lower prices if it weren't for the dastardly dealers? Do you think Ford bought up dealers (only to divest them) to lower prices, or to gain monopoly pricing power? That quote you are so certain about says nothing about lower prices to the consumer. It is competition, not only between competing makes, but between but between dealers with the same make, that provides lower purchase costs to the customer.

#2. The day Realtors have a responsibility to provide warranty service for years after you purchase a house will your analogy be right. The day Realtors have to own millions of dollars in inventory because you want to buy today will your analogy be right. The day Realtors have to be there to buy back a house that you have problems with will your analogy be right. The day Realtors have to maintain a multi-million dollar parts inventory for your house will your analogy be right. Until then, it is like comparing your friend with a Cessna to Southwest because they both fly.

[hoffdano]

Originally Posted by scm53

How?

I didn't word it well. It is less of a job protection scheme than a scheme to prop up dealers at the expense of consumers. It limits competition.

It is in the same category as beer laws that required brewers to use distributors (a law that changed recently).

[hoffdano]

Originally Posted by scm53

#1. Do you really think that the manufacturers would offer lower prices if it weren't for the dastardly dealers? Do you think Ford bought up dealers (only to divest them) to lower prices, or to gain monopoly pricing power? That quote you are so certain about says nothing about lower prices to the consumer. It is competition, not only between competing makes, but between but between dealers with the same make, that provides lower purchase costs to the customer.

#2. The day Realtors have a responsibility to provide warranty service for years after you purchase a house will your analogy be right. The day Realtors have to own millions of dollars in inventory because you want to buy today will your analogy be right. The day Realtors have to be there to buy back a house that you have problems with will your analogy be right. The day Realtors have to maintain a multi-million dollar parts inventory for your house will your analogy be right. Until then, it is like comparing your friend with a Cessna to Southwest because they both fly.

There is no data that shows in states where Tesla can sell as they wish that traditional car dealers have been harmed.

All Tesla wants is to own the dealership. They don't have confidence dealers will do a good job with their vehicles. Gosh - current car dealers are SO trustworthy. I trust them so much that I fix my vehicles myself, and prefer to buy used over new to avoid that wonderful dealer experience.

[scm53]

Originally Posted by hoffdano

There is no data that shows in states where Tesla can sell as they wish that traditional car dealers have been harmed.

All Tesla wants is to own the dealership. They don't have confidence dealers will do a good job with their vehicles. Gosh - current car dealers are SO trustworthy. I trust them so much that I fix my vehicles myself, and prefer to buy used over new to avoid that wonderful dealer experience.

The issue isn't Tesla, per se. It is the precedent it would create, which the other factories would then insist upon. As far as competition, if Ford owned all the dealerships in the state, how would that foster competition?

I just bought a new car. Shopped the internet for the best price. Even got prices from dealers as far away as California. In the end, it turned out that the Austin dealer was within $200 of the lowest. I never went in there - did it all online. I'm just glad they, and their parts inventory will be there, when I need it fixed.

The "confidence" issue is a red herring. I think it is all about control.