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>>"Once you start letting the manufacturers sell direct, then all of a sudden the dealers I have in 163 towns of under 15,000 population, they disappear" Why,
by patmcc 13y ago
>>"Once you start letting the manufacturers sell direct, then all of a sudden the dealers I have in 163 towns of under 15,000 population, they disappear"
Why, because they're artificially increasing prices for consumers? Texas should end special treatment for dealers, and let manufacturers sell cars directly to consumers, if that's what the market wants to do.
- cma 13y agoDealers are some of the biggest donors; we need campaign finance reform
- nickff 13y agoThe alternative to this is to stop the politicians from imposing laws of convenience by voting against these legislators, or amending the state constitution.
- maxharris 13y agoWhat we need is a separation of state and economics. Who would try to bribe a legislator without any power over the levers of the economy?
- _delirium 13y agoTexas has a bit of a split personality, which I guess is fairly common in conservative states towards the West: on the one hand it tends to be in favor of small government, free markets, etc., but on the other hand it also lionizes small towns, rural areas, the "real Texas" that isn't Houston/Dallas/Austin. Those two kinds of preferences are often in conflict, since small-town Main Street, left to its own devices, does not necessarily prosper in a modern economy.
- qq66 13y agoNo, because the laws that protect exclusive dealerships against competition from the manufacturer are the only reason that dealerships exist (nobody would have invested money to build a business that could be shut down overnight). What's interesting is that it's the car manufacturers themselves that lobbied for these laws to be enacted -- they wanted dealerships to be built, and knew that by tying their own hands they would reassure prospective dealers. Of course, these laws shouldn't apply to companies that have no dealerships whatsoever -- it's not relevant to the purpose of the law.
- srgseg 13y agoIn other industries, this is often achieved with geographical non-compete clauses, rather than by the state banning direct sales.
- TylerE 13y agoAutos are a bit special, due to the needs for servicing and the physical size and un-shippability of same.
- srgseg 13y agoI don't understand the distinction you are making. A dealership can sign a contract with the manafacturer that can geographically restrict the manafacturer in any way that is necessary.