Click here to load reader

Web viewAFF- AUTOMOBILE SALES. Intro: 1c- Pass this BC it will encourage competition within the US . W- TTB we will respecting the principles of free market capitalism

  • View

  • Download

Embed Size (px)

Text of Web viewAFF- AUTOMOBILE SALES. Intro: 1c- Pass this BC it will encourage competition within the US ....



1c- Pass this BC it will encourage competition within the US

W- TTB we will respecting the principles of free market capitalism

D- Steve Chapman, Editorial Writer, Chicago Tribune, June 2013

The effort to prevent direct sales comes from existing car dealers, who like the arrangement they have.

They claim to be trying to prevent "unfair competition," but the competition they prevent looks unfair only to those who profit from a protected market (a market w/o competition).

!- We all have to remember that a fundamental part of competition is to allow consumers to buy what they want however they choose to do so.

D- Economic Consultant Gerald Bodisch released a report on the Department of Justice in 2009:

Performed a meta-analysis of the economic effects of laws that prohibit the direct sale concluded that it harms consumers and the economy.

!- We must pass this bill to encourage more of those direct sales and make sure that we can stimulate the economy and respect competition within the United States --competition will only benefit us.

2c- Pass this BC it will help consumers

W- TTB citizens wont be forced to pay for added accessories

D- Francine Lafontaine, Director of the Bureau of Economics, Federal Trade Commission, May 2015

(Like Tesla,) Elio Motors will pursue a direct customer sales plan to keep down the price of its new vehicle at around $6,800.

D- According to The official website of Elio Motors

Most auto dealers add car bundles liked added heaters, leather seats, and so on, in order to make a profit. This drives car prices up past what theyd be if consumers could buy from manufacturers.

At Elio, you can add accessories after you purchase the car for that base price.

!- Emily Badger, The Washington Post, April 1, 2014

Many people cant afford cars; but having unreliable transportation leads to an increased chance of losing ones job. This means not only are people without a job unable to get cars bc of how overpriced theyve become, but without cars, those people are going to have a harder time getting and keeping a job.

In 2011, the number of people with no car and no reliable public transportation was 700,000; thats 700,000 people at risk of losing their jobs simply because cars are too expensive to buy. Pass this, and change their lives.


The effort to prevent direct sales comes from existing car dealers, who like the arrangement they have. They claim to be trying to prevent "unfair competition," but the competition they prevent looks unfair only to those who profit from a protected market.

With dealer networks being rationalized as part of cost-cutting initiatives, direct manufacturer sales to car buyers may present an additional opportunity to lower distribution costs. Such sales might range from consumers' simply ordering assembled vehicles of their choice directly from automakers to a scenario along the lines of the "Dell Direct" build-to-order model that revolutionized the personal computer production and sale process. GM initiated a build-to-order sales model in Brazil for its Chevrolet Celta economy car over eight years ago. In 2008, the Celta was among the sales leaders in Brazil.(3) At the time of the Celta's introduction, an auto analyst said that build-to-order could result in "spectacular improvements in the company's competitiveness and profitability."(4)

In the United States, however, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers. These bans on direct manufacturer sales are part of a broad array of state laws that bar manufacturer ownership of dealers and regulate entry and exit of dealers through territorial restrictions and provisions on dealer termination. Analysis of the economic effects of these laws has led some to conclude that they harm consumers and should be eliminated.(5) The focus here is more narrow state laws banning direct manufacturer sales, since they may be curtailing development of a more cost-effective method of auto distribution.(6)


Tesla eschews the traditional franchise dealership model, saying that electric cars -- as a new technology -- are best sold to consumers directly from the manufacturer, in part because consumers have so many questions about safety, batteries and how to charge their vehicles.

Elio Motors(link is external) has announced plans to manufacture an innovative low-cost, high-mileage, enclosed three-wheeled vehicle. According to announcements by the company, it plans to offer its products for a base price of $6800less than a tenth the price(link is external) of the cheapest Tesla Model S. The firm plans to manufacture the vehicles at a facility in Shreveport, Louisiana, beginning in 2016. As of March 29, 2015, it had accepted more than 41,000 reservations for the vehicles. Like Tesla, Elio Motors does not intend to establish an independent dealer network, but rather plans to pursue a direct customer sales plan(link is external) to keep down the price of its products.

"The prescriptions that weve been hearing for the last few years this is philanthropy, the news, at the federal level, and in the academic research the dominant ideas have been about improving and investing in transit," says the Urban Institute's Rolf Pendall, one of the lead investigators of the study, along with Casey Dawkins and Evelyn Blumenberg. "And I think thats imbalanced. I do think that low-income neighborhoods need more and better transit, for sure. But I think we have to be able to talk about cars, too.

"Its puzzling to me that we cant. That we havent more."

Families with cars in the Moving to Opportunity program were twice as likely to find a job and four times as likely to stay employed, a finding that's consistent with another common reality for the low-income: Unreliable transportation is one of the primary reasons why they lose their jobs. Both car and transit access had a positive effect on earnings, although the effect was much larger for car ownership.

(Wash Po 2011)

But is this really a problem in any way? Dont people have other options besides cars? Well, sort of. For one thing, some 700,000 of these zero-vehicle households dont actually have access to transit options, suggesting that there are sizeable gaps in metro transit systems that could stand to be filled in. But set that aside. Another relevant fact is that the typical household without a car can only reach a small fraction of the jobs in the metro area.


Intro: The Representatives on the Affirmation have been DRIVING me crazy with their arguments:

1c- Fail this BC it will threaten small businesses

W- TTB it leads to unfair competition by large corporations

D- Business Reporter Dana Hull, Bloomberg, Sept. 22, 2016

Michigan passed an amendment in 2014 in its law regulating motor vehicle manufacturers, distributors, wholesalers and dealers designed to favor the states automakers and franchise dealers.

They have franchise laws that were put in place to prevent manufacturers from opening stores that would compete directly with mom and pop dealers.

!- States like Michigan are prohibiting direct-to-consumer automobile sales for the sole purpose of making sure that their other small, family oriented businesses arent overpowered by larger corporations like Tesla. This started in the 1930s-era

D- Writer Elaine Povich, Pew Charitable Trusts, December 2015

Laws were created that aimed at prohibiting big manufacturers like Ford and General Motors from selling directly to consumer.

The fear was the big manufacturers would undercut the dealers on prices, drive them out of business and lessen competition.

!- Jason Nazar, Forbes Magazine, September 2013,

Small businesses like the ones endangered by this bill, employ over 50% of the US workforce. If you wish to endanger millions of jobs, thats on you _&_, but Im going to negate.

2c- Fail this BC dealerships offer an economic buffer for the auto industry

w- TTB they are able to sustain a healthy car flow even during economic downturns

D- According to CEO of TRED Automotive Dealer, Grant Feek, August 2013,

Explained that Direct to Consumer auto sales are dangerous for car manufacturers because of the potential decline in auto sales.

Currently, auto manufacturers like General Motors and Ford can keep producing cars even when they are not selling well, without having to lay off any workers. This is because dealerships are able to buy cars and hold on to them to sell later, serving as a buffer and allowing for a strong auto production industry, regardless of the status quo of the economy.

!- According to United States Bureau of Labor Statistics, in December of 2016,

The auto industry employs over 4 million American workers.


Search related