Lucid is challenging the Texas dealer franchise law in federal court, arguing that is anti-competitive and unfair to consumers.
but the upcoming Air Pure costs “only” $87,400 and is scheduled to launch next week. To meet its 2022 goals, it must produce at least 2.300 vehicles in the fourth quarter, which is rapidly approaching the mid-way point.Dealer franchise laws came into effect more than 70 years ago as a response to gross abuses by manufacturers, who could withhold inventory from dealers who annoyed the home office.
But like all good ideas, it grew into a monster that eats its own tail. Dealer groups now have enormous power over manufacturers and have cemented their position by donating generously and often to local and state politicians. It is checkbook democracy and its leaves many customers holding the short end of the stick. The loser in all this is the buying public, who get slapped around all the time by dealers with little recourse.
The ultimate factor in all this should be the Interstate Commerce Clause of the federal constitution, which makes federal law pre-eminent over state law, but there is little appetite for enforcing its provisions by federal courts these days in order to avoid revolts by the states. Nevertheless, state franchise dealer laws fatten dealers’ profits while providing very few benefits to consumers. United Airlines doesn’t buy 787 Dreamliners through airplane dealers. They deal directly with manufacturers. Amazon sells over a million items online every day without using dealers. Online sales have taken off this century with no apparent negative impacts on consumers. In fact, feedback from customers makes sellers especially keen to keep their satisfaction ratings high.
Dealer franchise laws are an anachronism left over from an earlier time. Today, their primary purpose is to fatten the bottom line of dealers. It’s time for them to be struck down. Maybe Lucid will strike the blow that destroys this archaic, anti-competitive business model. And not a moment too soon. Power to consumers. Right on!
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Lucid Motors Sues Texas Over Dealership RightsCould this case set a precedent for direct manufacturer-to-customer dealerships?
Weiterlesen »
Texas A&M report: Sales of rural Texas land are slowingSales of rural properties are falling while prices are rising, according to a report by...
Weiterlesen »
Texas churches violated tax law ahead of Tuesday’s election, experts sayChurches in Texas invited Beto O’Rourke and Lt. Gov. Dan Patrick to speak to their congregations before the 2022 midterms, raising questions about the effectiveness of the Johnson Amendment. With propublica: TXlege tx2022
Weiterlesen »
The Most Notorious Neo-Fascist Hate Group in Texas Can’t Catch A BreakAs much as 10 percent of the white supremacist Patriot Front, including leader Thomas Rousseau, are facing a civil lawsuit or criminal cases.
Weiterlesen »
Texas: The Issue Is - Secretary of State John Scott discusses voting integrity ahead of midterm electionThis week’s Texas: The Issue Is... focuses on the midterm election here in Texas.
Weiterlesen »
Marijuana on the ballot for four Central Texas citiesFour Central Texas cities are asking residents to decide whether to eliminate enforcement of low-level marijuana offenses.
Weiterlesen »