Opinion

No special treatment for Tesla

This June 22, 2012 file photo shows a Tesla Model S outside the Tesla factory in Fremont, Calif. The Tesla Model S electric sedan is Consumer Reportsâ top pick in this yearâs automotive survey. (AP Photo/Paul Sakuma, File) less This June 22, 2012 file photo shows a Tesla Model S outside the Tesla factory in Fremont, Calif. The Tesla Model S electric sedan is Consumer Reportsâ top pick in this yearâs automotive survey. (AP ... more Photo: Paul Sakuma, STF Photo: Paul Sakuma, STF Image 1 of / 1 Caption Close No special treatment for Tesla 1 / 1 Back to Gallery

As automobile dealers in Houston, we compete for business every day. We have to be competitive in our pricing, we have to offer good service, we have to be available for repairs or recalls and we have to continue to earn trust to stay in business.

There are automobile dealers across Texas in 300 communities doing the same thing we do every day. These dealers are often the major employers in the area and the major benefactors for the local hospital, schools and youth baseball leagues. And collectively, we are a powerful economic engine, pumping billions through the economic system of our great state.

Like many, we, too, believe innovation is critical and think the evolution of automobiles is exciting. But, we caution against jumping to the conclusion that supporting new innovative products requires being opposed to a system built to protect consumers. The motor vehicle franchise laws in place do not in any way hinder innovation; instead they foster the competition that benefits consumers.

One motor vehicle manufacturer, Tesla Motors, has been seeking an exemption from the franchise laws that require new motor vehicles sold in Texas be sold through a franchised dealer. Franchise laws exist to prevent monopolies and promote competition in vehicle pricing and service to the consumer, provide for the efficient distribution of vehicles and service across the wide geographic area that is our state, and provide a local presence where Texas consumers can have service, warranty and recall work performed even in cases when a manufacturer ceases to do business.

Nothing in state law is currently preventing the delivery of new Tesla vehicles from California to the citizens of the state of Texas who wish to purchase them online. Nothing in state law prevents Tesla from using the exact same model it is using today, with gallery stores and service facilities at other locations, so long as any retail presence is operated through a franchised dealer of Tesla's choosing.

As business owners, we can tell you first-hand that franchised motor vehicle dealers in Texas are more than eager to help Tesla succeed. In fact, numerous Texas dealers have contacted Tesla seeking an opportunity to retail their vehicles subject to Tesla's desires. Not only will the franchised dealer absorb any capital outlays required for the Tesla model, but we also believe the franchised dealer can help Tesla sell many more vehicles over the long term.

Increased sales volume without the cost burden is a winning business model, which is why every other major auto manufacturer who sells in Texas participates in the model (not to mention those who already sell electric vehicles).

So why the request for special treatment just for Tesla?

Considering the value of the consumer-protection based system currently in place and the fact that Tesla Motors now has the opportunity to sell its cars to Texans, we do not see any compelling rationale to provide special treatment for Tesla. Other manufacturers produce electric vehicles.

Other manufacturers produce in smaller volumes. Other manufacturers produce higher cost and more luxurious vehicles. They are all treated the same under state law. We believe Tesla should be treated the same as well.

State laws are designed to protect the greater good, not promote one special interest.

Mac DeLaup is president/managing partner of John Eagle Honda of Houston and board chairman for the Houston Automobile Dealers Association. Mike Smith, chairman of Russell & Smith Ford-Honda-Mazda is a board member for the Texas Automobile Dealers Association and Houston Automobile Dealers Association.