Pub. 55 2014-2015 Issue 4

14 I am Carroll Smith, representing the Texas Auto Dealers and I am here to oppose this bill. Mr. Chairman, Members. It is an honor to be here today. We’re here today only because a California company wants a carve-out to a law they’ve not even tried. It’s a solution looking for a problem. Tesla’s problems are self-imposed! It’s NOT rocket science. It’s much simpler than that. The truth is, if a Texan wants to buy a Tesla today he can! And Tesla is not deprived from selling under the Texas Franchise system. All they have to do is appoint a dealer, either one of the nearly 1,300 already operating in this great State or name one of their own choosing. Other manufacturers have programs that bring under-represented individuals in as dealers that allow close manufacturer involvement. Why not Tesla? This carve out is ABSOLUTELY a challenge to the dealer franchise system. The laws in Texas are the most respected and our market is the most competitive. That’s a free market! And it’s not by accident. The franchise laws of Texas are not antiquated, they have evolved and have been perfected by years of trials and success. The laws were created to prevent just this kind of monopoly being considered now, and they have served Texans well. The franchise laws create oversight and order for what is a very complex business. As the owner of Monument Chevrolet in Pasadena Texas for 41 years, I can tell you that Texas is the envy of the rest of the United States. I know this because I have been Past Chairman of Houston Auto Dealers, Board Member of the Texas Auto Deal- ers, and I proudly represent Texas on the National Automobile Dealers Association board in Washington. Our manufacturers and the dealers who represent them invest greatly in this state. The Dealers of Texas invest over $500 million in bricks and mortar annually and pay more than $964 million in taxes. General Motors builds 350,000 vehicles right here in Arlington, Texas and just announced it is considering a 1.2 bil- lion dollar expansion. Toyota builds over 230,000 units in San Antonio and has recently announced that they are bringing their North American Headquarters here to Texas. The Auto industry in Texas is HUGE. In fact, GM builds more vehicles right here in Texas in ONE DAY than Mr. Musk and Tesla will sell all year. It has been said- These cars are somehow different and don’t have maintenance issues. Every mechanical device has maintenance issues. Wouldn’t we all like to think we live in a world that nothing breaks — but it does? And if a Tesla never needs service…why does Tesla have service centers already? I’ve heard it said- Tesla is afraid dealers would not push for the sale of a Tesla on their own lots because the cars would not lead to more service customers and they think we are only interested in internal com- bustion engines. Today, Texas Franchise Dealers sell more electric vehicles than Tesla. We sell diesels, gas engines, electric, hybrid, two mode hybrid, and soon hydrogen fuel cell vehicles. Whatever the free market demands - WE WILL SELL! We are not ANTI-TESLA...we are ANTI SPECIAL EX- CEPTIONS! Tesla brags that their technology is unique. Tesla is NOT unique. In fact it’s a little, as my kids say.. .yesterday.com. There are now 13 other brands of electric cars. BMW, Ford, Chevrolet, Mercedes, Porsche, and Nissan - to name a few. All of them Carroll Smith’s Testimony to Texas House Committee on Licensing and Administrative Procedures April 13, 2015 Carroll Smith from Monument Chevrolet in Pasadena is always there when you need him - always looking out for the interests of his fellow-dealer. His 41-year commitment to the automobile industry he knows and loves is deep-seated, his father was a dealer and he has two sons and future grand- children growing the dealership. Carroll has testified at the Texas Legislature on behalf of the TADA membership regarding the documentary fee and twice against bills which would allow an exception to the prohibition on factory-owned dealerships, i.e., Tesla bills. He comes to the process fully prepared and ready to respond to any ques- tion that may be asked. As in 2013, Carroll’s testimony is re-printed below.