By on March 27, 2014

Texas Governor Rick Perry circa January 2014

With the possibility of bringing Tesla’s Gigafactory — and its 6,500 jobs — to Texas, Governor Rick Perry is actively pushing for legislation which would do away with the direct-sales ban currently preventing the EV automaker from doing more than presenting their wares to local customers.

The Dallas Morning News reports Perry took his stance on the issue to FOX Business’ “Opening Bell” earlier this week, explaining that it was in the state’s “best interest” to revisit what he says some people would view as “antiquated protections” for Texas’ franchise dealership network:

The people of Texas will say, ‘We don’t need to be protected. We like to be able to negotiate straight away.’ I think it’s time for Texans to have an open conversation about this, the pros and the cons. I’m gonna think the pros of allowing this to happen outweigh the cons.

Currently, Tesla has two showrooms in Houston and Austin, with a third soon to arrive in Dallas. As of this writing, however, none of the trio can do more than provide visitors with information about Tesla’s lineup, prompting interested parties to complete their purchase online or in a state more favorable to direct sales.

The move to allow direct sales would add another incentive for Tesla to build their Gigafactory in Texas, which Perry proclaims would give his state a much-desired cachet. Dallas-Fort Worth Metropolitan New Car Dealers Association president Lee Chapman, however, disagrees with the kind of incentive Perry wishes to use in luring Tesla:

The system we have was put into effect by the state to protect consumers and dealers. [Dealers are] always open to discussion, [but] at this point, we have not been given anything to discuss other than the right to sell cars here in exchange for a plant.


 

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41 Comments on “Gov. Perry Pushing For Direct Sales In Texas To Attract Gigafactory...”


  • avatar
    johnhowington

    rich people problems

  • avatar
    thornmark

    Good for Texas.

    OT I just read about a Texan who died from a fall at the Grand Canyon. A tragedy, yet the commentators at the LAtimes seem to take a special delight in the poor man’s death.

    Sick, sick, sick.
    http://www.latimes.com/nation/nationnow/la-na-nn-grand-canyon-fall-death-20140318,0,3275615.story#axzz2xAVSOuzd

  • avatar
    OldandSlow

    Rick Perry is a lame duck governor. the state republican party for the most part has moved to the right of him – which on more than one occasion has made him look like a moderate Republican.

    Also, the state legislature is where the power lays in Texas and this is an off year. So, no legislative action until next year, when there will be a new governor.

    • 0 avatar
      koshchei

      You’re telling me that there’s a right of Rick Perry? Do they throw acid on girls who learn to read?

      • 0 avatar
        George B

        There is a whole lot of Texas government that could be cut so, yes, it’s possible to be to the right of Rick Perry. Wanting less government to pay for is unrelated to South Asian acid attacks on girls. In Texas people generally follow the Heinlein “An armed society is a polite society…” view toward any kind of physical attack.

  • avatar

    I chalk this up as further proof that money talks.

    • 0 avatar
      highdesertcat

      Yup, and TX has plenty of it. The vehicles of choice in TX are the F150 and the Suburban. There’s an overabundance of those.

      OTOH, the standard of living in TX is high, even for the minorities on welfare, WIC and foodstamps seen gabbing on their free cell phones.

      Don’t see many skinny indigent minority individuals unless they’re illegal aliens from South of the border begging for money on the street, at intersections, in front of malls and stores, and blocking the doors to restaurants.

      • 0 avatar
        Dave M.

        My illegal alien radar might be off, but in 32 years in Houston I’ve never seen (my perception of one) begging on the side of the road or blocking restaurant entrances. Those spaces are usually reserved for veterans with dogs or family men/women with a child needing surgery. Except the one guy who just truthfully said “I’m a drunk and need money”.

        • 0 avatar
          highdesertcat

          Dave, I’ve seen illegals begging in Amarillo, El Paso, Dallas, Waco, Austin and San Antonio.

          Most heartbreaking is the teenage illegal mother holding a baby at the entrance of a Red Lobster restaurant. It worked! Lotsa people fork over them dollars to ease their conscience.

          For other than the illegals of which I speak, begging has become a profitable pastime, where they often rake in a bunch of tax-free cash money every single day.

          I have often asked if I could buy someone a meal to which they replied, “Thanks man, I’d rather have the money.”

          • 0 avatar
            LALoser

            Everyone is a sum of their experiences. I have clients in Dallas, San Antonio and Houston. During my extended visits there the clients always tell me how they never see Hispanics asking for money. Legal or illegal.

      • 0 avatar
        dantes_inferno

        @highdesertcat: OTOH, the standard of living in TX is high, even for the minorities on welfare, WIC and foodstamps seen gabbing on their free cell phones.

        “The numbers go like this: 61% of the population receiving welfare, listed as “means-tested cash assistance” by the Census Bureau, is identified as white, while only 33% is identified as black. These numbers notwithstanding, the Republican version of “political correctness” has given us “welfare cheat” as a new term for African American since the early days of Ronald Reagan.”

        http://content.time.com/time/magazine/article/0,9171,156084,00.html

        • 0 avatar
          highdesertcat

          And that is really too bad! With an American president who is half Kenyan and half White, and with an administration that has a large number of blacks in positions of power, we could easily be persuaded to think that these minorities would be helped by their governance.

          Instead, we have more people of color on welfare, handouts and Medicaid than ever before.

          Is it any wonder then that so many Americans who had to work for what they have, because of this have completely withdrawn their support of America and everything it stands for?

          • 0 avatar
            28-Cars-Later

            The seeds for the current depression were sown in the 80s and early 90s when industry and jobs were artificially exported. The societal trends you speak of would have happened irregardless of who was in power, although the “welfare” issue has been exacerbated by the current administration. I think they made a choice when they started to crunch the jobs numbers, buy off the newly unemployed and increase buy offs to the welfare class or face increased instability or possible insurrection. Saudis made the same choice the administration did in 2011, and all oil consumers are paying for it.

          • 0 avatar
            highdesertcat

            28-Cars-Later, I believe you may be right. But Ronald Reagan inherited a worse mess from Carter than O**** did from Shrub. And Ronald Reagan with prudent advise was able to right the economy at a time when managing and controlling the USSR was still draining a lot of our national resources through the Defense Military complex.

            O****, OTOH, got advise from his scholarly Harvard buddies who never had to manage anything nor make a budget to govern, and the result is what we live today. Couple this to the fact that O**** never governed a state, county or municipality, and lacked any experience in anything other than talking in front of a community organizing session, and the future of America was assured.

          • 0 avatar
            28-Cars-Later

            Maybe that’s why they brought him in to begin with, a weak minded inexperienced person is much easier to control. If things were simply inevitable at the get go, it really didn’t matter who sat in the chair but the benefit to those behind the scenes of the President over his first opponent is his faults.

          • 0 avatar
            TW5

            Except jobs weren’t artificially exported. Housing, healthcare, education, pension and other costs double every 10-20 years. Those costs are paid indirectly by employers. Employers also have less skilled workers to hire thanks to the inexplicable defunding of the university systems as a proportion of total tuition cost.

            We didn’t get outsourced. We shot ourselves in the head, and we expected corporate America to save us.

          • 0 avatar
            highdesertcat

            28-Cars-Later, I think he was brought in because of his enormous popularity especially with the young people, many of which who do not care about ‘experience’ but vote on likability.

            I didn’t like Romney for too many reasons to go into here. I liked O**** except for his total lack of any governing experience. So I voted for Gary Johnson, a former governor of my State I personally know, but who also had a snowball’s chance in hell of getting elected.

            Many Independents didn’t even vote on any issues other than local ones. I saw their voting sheet before it went into the tally machine when I was working as a monitor last Election Day, and those marks were left blank.

            Happens every election cycle. People only vote on what they feel strongly about. Evidently, who gets to be called president doesn’t matter much to many people. Many have seen it all before. One is as bad as the other.

          • 0 avatar
            Chopsui

            I see Dante’s facts sailed completely over your head.

          • 0 avatar
            28-Cars-Later

            @TW5

            I’m not in a position to make serious economic arguments so you may have points there. I will point out however all of those industries doubled because they could not be easily exported (except perhaps pensions, running a fund can be done from anywhere now). Regarding the “inexplicable defunding of the university systems” I can’t really say if this is true or not. Even if it was true, society’s forcing everyone into the education complex in order to obtain basic a livable standard in employment is and always was foolish as many are not meant for it. But the sort of jobs those folks could do were by and large, artificially exported.

            @HDC

            You know as well as I popularity can be easily manufactured, many of the worst despots of all time were popular when they were first elected or seized power. When the President first “came on the scene” as it were and it was revealed he had such a questionable past I recall saying “they just invented this guy”. People knew who Hillary, John McCain, and John Edwards were for a long time. But prior to the “wink wink” 2004 Illinois Senate election, in which the now president ran against Alan fricking Keyes (who *I* could probably beat in an election) after a better opponent Jack Ryan withdrew, who was this man, Obama? We really don’t know and we’re shamed in asking. So then after it became clear this man was becoming a favorite they had to build him up, right? The whole buildup campaign run in 06-08 just seemed too contrived, too lock step in with media, too perfect. This man’s past and political career to me looked very much like an intelligence op.

            Regarding young people, one suggestion is to up the voting age to thirty and have it cut off after say sixty five. So called “young people” do not have as much of a stake or the maturity level of a *true* adult, and people beyond a certain age have no vested interest in where their country is going, its just “I need” at that point.

            http://en.wikipedia.org/wiki/United_States_Senate_election_in_Illinois,_2004

        • 0 avatar
          reclusive_in_nature

          Whites make up approximately 63% of the population and blacks make up roughly 13%. I’ll let you and everyone else do the math and make your own assumptions.

          http://quickfacts.census.gov/qfd/states/00000.html

          • 0 avatar
            highdesertcat

            reclusive, it is doubly confusing then, with blacks only 13% of America’s population, that we find them represented in every commercial, advertisement, movie, as if they made up 50% of the population.

        • 0 avatar
          jkross22

          According to UT-San Diego, CA is the welfare capital of the country.

          34% of welfare recipients in the country live in CA while the state has only 12% of the population.

          http://www.utsandiego.com/news/2012/Jul/28/welfare-capital-of-the-us/

          • 0 avatar
            highdesertcat

            Hell, I thought that the State of New Mexico, the poorest state of the nation, was the welfare capital of the US.

            It’s too damn bad that I can’t qualify for anything except hard work.

      • 0 avatar
        koreancowboy

        Oh, you went to Tejas and saw a couple of “illegals” begging for money?

        Cool story breh, too bad that it’s not completely true. It’s mostly older White “veterans” and the like that beg for money.

      • 0 avatar
        Chopsui

        The standard of living is high only for the minorities on welfare? What about the whites on welfare?

  • avatar
    redav

    This is the first thing in a long time that Gov. Good Hair has done that I agree with.

  • avatar

    I’d say something about men’s hairspray and rampant hypocrisy, but Tesla clearly knows Texas’ backwards politicos well. They like money. Threaten to take yours elsewhere and it’s like a punch in the balls.

    Smart move, Tesla. Smart move. Both ends of this (setting up shop in a very business-friendly state and getting direct sales to customers) lead to profit, so well played. I hope it happens. This would be huge for our state. Also, it’s always hilarious to see our crooked politicians shove their foots right back in their mouths.

    • 0 avatar
      jkross22

      As a CA based company, you’d think CA would do what they could to keep this plant in CA.

      I guess with politicians like Leland Yee, CA law enforcement is keeping our state Assembly and Legislature busy with things outside of the auto industry:

      http://www.latimes.com/local/lanow/la-me-ln-leland-yee-gun-lobby-20140327,0,1570592.story

    • 0 avatar
      George B

      Rick Perry isn’t running for reelection in Texas. Talking about changing dealer franchise laws might help him win bragging rights for winning a high-profile manufacturing facility, but so far he’s he’s not calling a special session and lobbying legislators. May not have the votes in the legislature to change the law.

  • avatar
    alsorl

    I’m no where near being a Rick Perry fan. But this is probably the future of car sales. TrueCar percentage of sales goes up every year which is becoming very close to direct sales. One of the main reasons people are not up grading or purchasing new cars is do to the sales monkeys at the dealerships. Some people enjoy it like myself. It’s almost like entertainment watching them jump around and suck so much buttocks. But there are many people that would rather get their car fixed or just deal with the car issues just so they don’t have to deal with the sales monkeys. More auto makers may get on board with this as they see Tesla’s success and increase of TrueCar sales. If direct sales increases car sales, the sales monkey will become a test driver or just an educator for that brand.

    • 0 avatar
      05lgt

      It’s not the buttocks sucking monkeys, but rather an association of thier organ grinders that paid to have these laws put on the books. It likly seemed a fair price in the dark of night, but now that it’s all out in the open the violation of thier oaths to uphold the interests of thier constituents likely seems to have been sold somewhat cheaply.

    • 0 avatar
      raresleeper

      If you think Ricky Perry’s a good salesman… wait ’till you see some of the ideas he’ll implement into future models.

      Such as the power boot rack.

      And a dramatic increase in the number of interior compartments, just the ideal size for every passenger’s revolver.

      Side Note: this all comes standard on the F-Series “Great Nation of Texas Edition”.

      • 0 avatar
        George B

        A revolver is a historical anachronism. Small number of shots like 6 before reloading, takes too long to reload, and has protrusions that get caught on clothing. Some criminals like the fact that revolvers don’t expel shell casings and therefore leave less evidence behind, but most everyone else uses a more modern handgun.

  • avatar
    Dr. Kenneth Noisewater

    Yawn.

    Wake me for the special session to get Tesla its dealer sales exemption. Without that, it’s just a bunch of crap.

    Nevada’s the site, unless NM or AZ throw huge gimmies in the mix.

  • avatar
    mcs

    It’s not just the Gigafactory, a SpaceX launch site at Boca Chica could be in play as well.

    http://www.themonitor.com/news/local/article_b3638b4c-a01d-11e3-9b82-0017a43b2370.html

  • avatar
    olddavid

    I was about to unleash a political screed when I remembered why I try to avoid these click-bait subjects. We haven’t solved one problem here yet by having a bunch of gearheads scrutinize the topic. Move along, nothing to see here, folks.

  • avatar
    RogerB34

    Too much political grease dealers to legislators to allow direct sales.

  • avatar
    raresleeper

    Governor Perry pushing for Tesla Plant? Just what in The Haides is going on, here?

    What’s next, a Prius plant in East Texas?

    Before we know it, we’ll catch up on the latest pictures in the Tabloids, of Anita and Rickey Perry and Barrack and Michelle O, double dating.

    “Dogs and cats living together! Mass hysteria!”


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