Pub. 56 2015-2016 Issue 3

38 CONCLUSION The consumer’s interest is reviewed by the state legislature at every step in the legislative process. The consumer’s interest is statutorily required for consideration, directly or indirectly, throughout the Texas statute. It is contemplated in the establishment of a new dealership point, a dealership relocation, a dealership ter- mination, a dealership transfer, as well as in warranty reimbursement. There is a recognition that the distri- bution and sale of motor vehicles vitally affects the general economy of this state in addition to the public interest and welfare of the citizens. Accordingly, the statute balances agreements with the state’s concerns, the manufacturer’s needs, a competitive environment, and the dealer’s investment. The legislature requires a sound system of distributing and selling motor vehicles in order to “provide compliance with manufacturer’s warranties and to prevent fraud, unfair practices, discrimination, impositions, or other abuse of the people of this state.” 73 Advancing these legislative require- ments, the agency also enforces a “lemon law,” requiring a notice to a buyer of their rights as well as a disclosure statement; 74 enforces the factory warranty; 75 and adopts and prosecutes advertising requirements. 76 The state legislature continually bal- ances competition and customer choice and passes a bill only after public com- ment and hearings and then it must be voted upon and signed by the Governor before becoming effective. The statutes are re-visited each regular session of the legislature for the public interest and for reasonableness. To suggest otherwise is to undermine and belittle the state’s legisla- tive process. Many of the issues regarding the elec- tric vehicle 100 years ago are still with us today- inexpensive gasoline; cost, as the electric vehicle is currently more expensive than the internal combustion engine vehicle; the limited driving range of the electric vehicle versus the gasoline powered vehicle; and, the limited charg- ing infrastructure as well as the time to re-charge. Government expenditure is attempt- ing to make the electric vehicle more competitive through rebates provided by states up to $2,500.00, federal tax credits of $7,500.00, 77 and government installed charging stations. 78 In 2011, it was predicted that the U.S. would have a million electric vehicles on the road by 2015. While federal spend- ing on electric vehicles is forecast to total $7.9 billion through 2019, it was reported in February, 2015, that the one million prediction fell short by 72% as there were 286,390 plug-in vehicles on the road, as reported by the Electric Drive Transporta- tion Association. 79 According toMs. Hollingsworth, with the exception of the all-electric Tesla Model S, which lost market share, total sales of plug-in vehicles increased 35% in 2014. This increase came from franchised dealerships. Whether it is an electric, gasoline, hydrogen, natural gas, solar, hybrid, or other-fueled vehicle, the franchised dealer distribution model provides the consumer, the community, the state, the manufacturer, and the dealer with the best motor vehicle distribution system as it brings the consumer competition and choice–the FTC’s mission and vision. The axiom as to the benefits of the franchised new motor vehicle dealer distribution model was learned decades ago, remains true today, and continues to prove itself. Respectfully submitted, Karen Phillips General Counsel/EVP  The axiom as to the benefits of the franchised new motor vehicle dealer distribution model was learned decades ago, remains true today, and continues to prove itself.  DEALER FRANCHISE — CONTINUED FROM PAGE 37