skyote

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@Autolycus & @thrill , you're both correct.

@thrill, Auto is saying that the direct sales issue is small potatoes in the scheme of things & shouldn't be viewed as a stopper.
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Autolycus

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FWIW, the Georgia governor has the authority to call a special session of Congress.
Of course he does, but he's not calling a special session of the General Assembly just to hold a vote on direct sales of automobiles. The incentives that would be offered are likely already allowed under various economic development provisions of the OCGA and wouldn't need a special session this year. If a special session were needed for the land or tax incentives, then I would fully expect direct sales to also be included in the legislation drafted for that. I would expect the exception to the dealership requirement to include Tesla (as already exists) and any manufacturer employing at least x people at a manufacturing job in the state or some other specific language that would include just Rivian or others who want to open a plant here. Even if there's not a need for a special session, I think that scenario is the most likely to pass the change in the dealership requirements.
 

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To me it's an easy road to direct sales if there's a $5b plant attached.
Not necessarily. Tesla is building a massive factory in TX and yet TX legislature killed a direct sales bill this year. The infamous @skyote pointed out the irony of that in his testimony!
 

Atlrivian

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Not necessarily. Tesla is building a massive factory in TX and yet TX legislature killed a direct sales bill this year. The infamous @skyote pointed out the irony of that in his testimony!
Just because proposed legislation is in the best interest of one state representative's constituents doesn't mean enough other state representatives will perceive it to be in their best interest to pass said legislation.

As an aside, the AJC reported the primary argument against direct sales back in the spring was that it would mostly benefit rich people buying expensive cars. That hasn't changed 🤷‍♂️
 

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Just because proposed legislation is in the best interest of one state representative's constituents doesn't mean enough other state representatives will perceive it to be in their best interest to pass said legislation.

As an aside, the AJC reported the primary argument against direct sales back in the spring was that it would mostly benefit rich people buying expensive cars. That hasn't changed 🤷‍♂️
Valid points. Two things

I was mainly trying to say I don't think direct sales will be as big a deal for making a decision on where to build. Texas and Tesla is a prime example in that the plant is there regardless of the law.

Second, politicians are in the business of getting reelected. Dealers spend a lot of money on them but narratives can change and so does who spends the most. In GA, there is already an exception for Tesla to sell, not hard to think Rivian gets added especially if there's jobs and investment.
 

Gshenderson

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Valid points. Two things

I was mainly trying to say I don't think direct sales will be as big a deal for making a decision on where to build. Texas and Tesla is a prime example in that the plant is there regardless of the law.

Second, politicians are in the business of getting reelected. Dealers spend a lot of money on them but narratives can change and so does who spends the most. In GA, there is already an exception for Tesla to sell, not hard to think Rivian gets added especially if there's jobs and investment.
I’d look at it a little differently and say that this provides them a rare opportunity where they have leverage over the NADA lobby. If they fail to use it in negotiations, they potentially miss a once in a lifetime opportunity to get change related to direct sales.
 

Gshenderson

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Just because proposed legislation is in the best interest of one state representative's constituents doesn't mean enough other state representatives will perceive it to be in their best interest to pass said legislation.

As an aside, the AJC reported the primary argument against direct sales back in the spring was that it would mostly benefit rich people buying expensive cars. That hasn't changed 🤷‍♂️
In TX it was something along the lines of “The auto dealers sponsor little league baseball teams. If you force them into free market competition, they will all suffer and then can longer sponsor those little league teams.” Cry me a river!
 
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Sean

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I’m TX it was something along the lines of “The auto dealers sponsor little league baseball teams. If you force them into free market competition, they will all suffer and then can longer sponsor those little league teams.” Cry me a river!
Translated - The auto dealers profit from a rigged system that limits competition and they pay us in campaign contributions and other perks to keep it that way. Also, even though other states allow competition and its proven to not be a factor to their profits(!), change scares us so we'd just rather not.
 

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Sean

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They are citing the Reuters article. Very possible though.

The one thing that stands out to me is that they say they want to start on it this fall/winter which means that they should pretty much have lined up the deal. Which means there's 1 owner ready to sell. There are likely only 2-3 sites in the country that big that can be transitioned that quickly.
 

Autolycus

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They are citing the Reuters article. Very possible though.

The one thing that stands out to me is that they say they want to start on it this fall/winter which means that they should pretty much have lined up the deal. Which means there's 1 owner ready to sell. There are likely only 2-3 sites in the country that big that can be transitioned that quickly.
The Reuters article suggested that the documents leaked were outdated as far as the timeline goes. I suspect those requests to states were made in 2020. If you want a bidding war, you have to give state development offices time to prepare their best bids. I suspect ground breaking will happen very end of the year or early 2022, based on Reuters' expected 6 month delay.

Here's another AJC article talking about the ~2300 acre site that the state of Georgia owns, as well as some of Georgia's efforts to attract an auto plant to the state--we have the Kia plant right now but just missed out on a Volvo plant that landed in SC.

https://www.ajc.com/politics/politi...n-georgia-history/RTZ3KYLN6FEJXLOFGBRBDYMJH4/

The article notes one of the neighbors of the site:

Earlier this year, Georgia doubled-down on the site. The state took about $62 million it generated from the sale of a nearby tract of land to Amazon for a warehouse to help finance the purchase of the land with a local joint development authority. Now, the state has outright control over the site.
 

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