[Wynn]

Last week, the Houston Chronicle ran a story on the MINI Cooper and Cooper S, but the real focus of the article was the ongoing problems between BMW/MINIusa and the State of Texas. Reporter Tim Spell did his homework well, and contacted state officials as well as Jack Pitney, general manager of MINI USA, to compile an impressive history of the conflict. His thorough investigation, complete with records of the specific dates upon which Texas outlined and reiterated its requests for required feedback never received from BMW/MINI USA, is quite damning, and a difficult read for those of us who have previously been led to believe that the state has been responsible for the delay. This presumption is now clearly incorrect.

It is true that Texas's requirements differ in one regard from the other states, in that it requires report of the proposed dealerships along with the application to sell cars in the state. Other states allow the application first, process it, and approve it, before an automotive company has to provide information regarding proposed dealerships for authorization to sell the brand. But the delay has not been in state processing of submitted information, as we've seen suggested in the past. Instead, even now, MINI USA has not provided the State of Texas with its list of proposed MINI dealerships.

Infuriatingly, BWM and MINI USA have responded by saying that this is not how they work; they prefer to have state approval to sell the car, before evaluating prospective dealerships. It is as if BMW and MINI USA have said that the state should bend to their preference, rather than abide by its laws. This, of course, is not going to happen.

Texas first notified BMW of the deficient application data on May 2 of 2001. A second notice was dated November 8th of last year, and a third notice and request sent on January 8 of this year.

To this day, MINI USA reiterates its contention that it cannot or does not evaluate prospective dealerships for states in which it is not authorized to sell cars. Worse, the company says it has still not yet evaluated prospective dealerships, and a meeting to discuss the matter further is not planned before the end of April. For its part, the State of Texas reports that this missing information is the only criteria withholding processing of the application to sell cars in the state.

So clearly, the burden of this responsibility and delay lies squarely upon MINI USA, while Texas has done its part and even twice reiterated its request for the last information required to approve MINI sales in the state. And I am infuriated to now have conclusive evidence that MINI USA has had the opportunity since May 2 of last year to resolve this matter, but a year later has still taken no action to do so.

I am a full-time undergraduate student in Houston, and have been planning for a year to buy a new MINI to replace my used, ten-year-old car before it disintegrates, and I have even saved the money required for the down payment and purchase... so I feel betrayed that as hard as I have worked an invested my time and savings toward MINI, MINI has not done even the minimum to reach out toward me and make a car available here. I feel betrayed, furious, and bewildered, and would really like to see MINI USA take action to first explain their position, then apologize, and finally bend over backwards to make reparations to Texans who have long expressed their enthusiasm and loyalty for the brand. Bruce, they should send you a free car, for all you've done to promote the car and generate good will in our state; thank you for YOUR enthusiasm, work, and communication. I'm glad at least to be in good company among other Texans who want to own a MINI.

-wynn martin

[Casey]

great story - too bad he left out the part that once MINI USA submits the dealership list to them and they notice that not ever dealership that sells bmw is on there for the MINI, texas will reject the application. You can write anything you want and prove any point you want...it is all words and how you put them together. This author obviously wanted to blame MINI USA...my personal opinion - why does texas have to be different then EVERY other state in this regard????

Cheers

[Wynn]

I thought the tone of the Chronicle article was, in fact, balanced and objective, and went on finally to focus on the car, after reporting thoroughly on the delay. It gave the impression that the reporter had been told that Texas is ready to approve MINI for sales here, when they receive the names of the Dealerships selected by the auto company to sell their cars. Do you have reason to believe something else? Why do you say that Texas will still reject the application? It is clear that MINI's application has, to this point, not met the state's criteria, and I see no reason to believe that when MINI complies with requirements, the state will not rubber-stamp an approval.

[Wynn]

...I should add that I agree with you that it is silly for Texas to have this criteria not required anywhere else, and to let such a trivial point hold back such potential commerce. But it's at least equally frustrating that MINI USA hasn't simply complied with the odd Texas requirement; to resist a state's protocol for any formal process is just futile, of course.

[Casey]

Yes, I do agree - MINI should try to comply with them as I don't think they will be able to get around it, but Texas is sitting there saying, "once you do everything we require, everything we want, everything we depand we will approve you" - the article made it sound like all MINI had to do was say these 3 dealerships and its a done deal, but unless MINI says ALL the dealerships that want MINI franchise in Texas can have one, then Texas won't ink the deal.

I agree very much with you that it has to be VERY frustrating for Texans who wish to get a MINI. I would be very frustrated if I were you and I'm sure i'd be raising hell w/ MINI USA and Texas(not sure exactly what org within the gov this pertains to, but I'd find out..hehehe)

Cheers

[BruceK]

Wynn,

First off, thanks for your kind words. If MINIUSA somehow does see fit to give me a free car for MINI enthusiasm and cheerleading, I promise I'll let you take it for a spin. Just don't hold your breath.

No one is more frustrated about the lack of MINI dealers in Texas than I am. As a lifelong classic Mini owner and enthusiast, I have eagerly awaited the MINI's return to the US. I started pestering my local BMW dealer back in early 1998 about buying a new MINI when they would be available (to be met with blank stares, as they'd never even heard of the classic Mini).

I have not seen the Houston Chronicle article, so I can't comment directly on it, but as Casey mentioned I think there is more going on than is immediately apparent. It is my belief that the ghost of the lawsuit concerning BMW's intention of only allowing select BMW dealers to sell the X5 SUV is definitely haunting this issue. The unfavorable (to BMW) result of the lawsuit has no doubt contributed greatly to BMW acting rather conservatively (that's the nicest way I can phrase it) concerning dealing with the state of Texas about establishing new MINI dealers.

Since BMW considers the MINI car line to be completely separate from the BMW line, setting up MINI dealers should be no different than Daimler/Chrysler setting up new Jeep dealers. However, I think that fact that each MINI dealer in the US is associated with a corresponding existing BMW dealer is the crux of the matter. In Texas, this again evokes shades of some BMW dealers getting something that others can't -- and the memories of the X5 mess. I think that is why MINIUSA wants approval first, then the ability to select dealers secondly, rather than the other way around as the state insists. However, it is clear, for example, that not every Dodge dealer is allowed to sell Jeeps, so there are certainly precedents in this direction.

From my (admittedly limited) understanding of this situation, the two issues, X5 marketing and MINI dealers, are totally unrelated to each other, but having had their toes squashed last time they danced with the state of Texas, BMW/MINI is now stepping (or should I say side-stepping) very carefully.

I just wish someone would give them a nice size 12 kick in the derrière to move 'em along, though! It's time for someone to make a move, and it looks like it's BMW's turn.

[BruceK]

Just realized that my reference to the BMW X5 lawsuit in Texas (above) may not make much sense if you don't know the background. Some history of that is in this thread:

http://www.mini2.com/forum/showthrea...&threadid=4219

[MGB Boy]

Just my two cents...

Doesn't this situation have a vague whiff of BMW wanting to have thier cake and eat it too? Staff at MINI showrooms emphasize that it isn't just a little BMW, it's a brand of it's own. Staff at autoshows downplay the BMW link and stress that it is a separate line. E-mail responses from MINIUSA reinforce this central theme: That the MINI is a separate and distinct line and that the ability to sell the MINI is a separate and distinct franchise. Yet they tie each and every franchise to a BMW dealer? Every single one? Legally speaking, they've cut thier own legs out from under themselves. If they awarded even one single franchise (ideally in Texas) to a dealer with no BMW affiliation, they might have a leg to stand on. Otherwise, they're screwed.

-Ricardo

[MGB Boy]

And if the state of Texas can establish that during the franchise selection process no non-BMW dealers were ever considered or allowed to apply, BMW and MINI really don't have a leg to stand on...

-Ricardo

[Wynn]

Thank you for your thoughts, and Bruce, thank you especially for reviewing the BMW/Texas history with us, which does help clarify some issues for us all.

But, I think maybe we're all reading too much into the current MINI hold-up, probably because we're extremists in our enthusiam, and subject to biased or distorted perspective.

Does it seem possible, and even reasonable, that the problem is merely what Tim Spell reported in The Chronicle? That MINI has simply failed to meet the state's unique request for dealership names? I really think that's all there is to it-- that the company just hasn't gotten its act together to work with the one state that does things in a different order.

It certainly makes more sense to believe this than to embrace the idea that BMW is somehow blowing off Texas out of anger over the older issue-- BMW wants to sell as many MINIs as it can, in every state... even if it cannot immediately meet demand, it benefits from having the demand, dealers, and orders in place.

And Texas surely doesn't give a damn about making things hard on MINI in retribution for BMW's irritating past; the state is extraordinarily uptight about following procedures to avoid legal liability, for instance; but even more significantly, it would love to tax the sales of a lot of new cars in Texas.

So... I think it's reasonable to accept the simplest explanation at its face value; and that's usually a good idea, anyway. In this case, we just don't want to believe the truth, because it's so frustrating and pointless, and because it makes our beloved MINI USA the "bad guy." But I do think that's the truth: that MINI just hasn't ever gotten its act together, and the entire hold-up could have been resolved a year ago with a day's paperwork and the willingness to do things the way the state requires.

[Casey]

I disagree...I believe there is more to it then just what the chronicle says. That is only 1 side of the story. Sure I'm speculating, but I'm also going off of info I've gotten from people within MINI USA as to the hold ups. If it were as easy as just turning in a list and start selling it would have been done last year, but it isn't that simple.

Cheers

[Deuce Coop]

Living in Texas and equally frustrated with this situation.

Does the BMW/MINI dealerships have seperate service areas ar does BMW reserve a couple of bays for the MINI's. If they share a garage it may weaken BMW's argument of being a seperate entity.

As far as Texas playing by different rules than everyone else, I have noticed since I moved here that it likes to view itself as a seperate country-ie-"The Republic of TEXAS", rather than just another state. How ironic, MINI claims to be seperate, but is actualy part of a larger corperation, and that has cost them the right to sell in a state in the same frame of thought.

[Casey]

Quote:

Originally posted by Duece Coop
How ironic, MINI claims to be seperate, but is actualy part of a larger corperation, and that has cost them the right to sell in a state in the same frame of thought.

hehehe - well stated.

[BruceK]

Quote:

Originally posted by MGB Boy
Just my two cents...

Doesn't this situation have a vague whiff of BMW wanting to have thier cake and eat it too? Staff at MINI showrooms emphasize that it isn't just a little BMW, it's a brand of it's own. Staff at autoshows downplay the BMW link and stress that it is a separate line. E-mail responses from MINIUSA reinforce this central theme: That the MINI is a separate and distinct line and that the ability to sell the MINI is a separate and distinct franchise. Yet they tie each and every franchise to a BMW dealer? Every single one? Legally speaking, they've cut thier own legs out from under themselves. If they awarded even one single franchise (ideally in Texas) to a dealer with no BMW affiliation, they might have a leg to stand on. Otherwise, they're screwed.-Ricardo

I understand your point, but consider my earlier example of Jeep. Have you ever seen a standalone Jeep dealer? I haven't. Have ever seen a Jeep dealer that was not paired with another family brand? (AMC or Daimler/Chrysler) You don't see Chevrolet/Jeep dealers, do you? So why should it be any different with BMW and MINI?

[FiremanMike]

Sounds like the only real loser in this mess are the people (who else) who live in Texas. MINI will sell the cars with no problem. The poeple who really want a MINI will go elsewhere. Good luck

Mike

[BruceK]

Quote:

Originally posted by Wynn
....Does it seem possible, and even reasonable, that the problem is merely what Tim Spell reported in The Chronicle? That MINI has simply failed to meet the state's unique request for dealership names? I really think that's all there is to it-- that the company just hasn't gotten its act together to work with the one state that does things in a different order....

My thoughts are this:

Until MINI can somehow be assured that the state of Texas will not attempt to revisit the issues raised with the X5 lawsuit once MINI submits dealership papers, things are in an indefinite holding pattern. It's a stalemate and nobody is blinking. Perhaps MINI is awaiting an unofficial nod of the head from some Texas official that no games will be played this time, and then it will act?

But this is all just my speculation. I'm sure I'd be more upset if I actually knew the facts in the situation.

[PghArch]

It is very frustrating when states maintain standards which are either outdated, conflict with national standards or both. I don't know anything about this situation, but reading the articles and responses does lead me to one question.

The implication is that the application to sell cars is subject to the full list of dealers selling those cars. If this situation were otherwise MINIUSA would have an easy workaround. Simply establish a single non-affiliated dealer to sell the cars, complete the application, add five selected BMW dealers as other outlets after the application is approved and close the original non-affiliated dealership. This is obviously against the spirit of the requirement, and likely the language as well. (Hold on, my question is coming...)

Also, it seems likely that MINIUSA has been doing what they can to reinforce the branding they have established, and that may in extreme cases mean that they would end a particular dealer's right to carry their car (not uncommon in franchise situations). BUT, and here is the question. In the State of Texas once you are approved to sell cars, must you reapply for that right every time you add or subtract a dealership? If so, a single dealer with political influence could easily hold MINIUSA "hostage" by behaving poorly but then making sure that if MINIUSA wanted to close their MINI franchise they would need to close all franchises in the state.

It is obviously a confusing (and somewhat absurd) legal requirement, but it is much better to get it resolved now. Imagine how much worse it would be to deal with all the franshises closing two years after selling the vehicles. Now how do you honor the service agreements? What a mess. Frankly, it just sounds like an opportunity for lawyers to make more money to me.

[kcmini]

BMW/MINIUSA is just subscribing to that old saying, "Don't mess with Texas."

Texas always tries to be bigger and different than the rest of the U.S. This time, it appears to be to the detriment of their mini fans. Sorry guys and gals.

However, just think about how much fun that first drive will be when you head back home from the north. That will give you plenty of time to forget what ails 'ya.

[Wynn]

Well unfortunately, to address two previous posts: no, BMW service centers will not be allowed or equiped to service MINIs; so, secondly, I will NOT be buying a MINI from out of state. It would just be foolish, no matter how much enthusiasm I have for the car-- it's got to be servicable at home.

I'm an undergraduate student, and MINI is my first choice... and I'll have to replace my dying car pretty soon. I've busted my ass to save the money for a MINI, but MINI needs to know that really, we're not going to go 500 miles to buy a car we've never driven, and cannot own a car for which there's no service available. Mostly, the bottom line is that eventually, I'm going to have to buy a car, and I'll have to buy something that makes sense, even if it's not the car I'd love most. So MINI will lose me, and people like me-- and, most of all, ordinary folk who aren't crazy MINIphiles like those of us at MINI2.com, who might buy the car if it were here, in town-- unless they can fix what's wrong, and get those dealerships rolling here.

I really feel betrayed by MINI USA, and I'm frustrated that they've still not responded and apologized, or done anything for us while we wait for them in Texas.

[MGB Boy]

Quote:

Originally posted by BruceK

I understand your point, but consider my earlier example of Jeep. Have you ever seen a standalone Jeep dealer? I haven't. Have ever seen a Jeep dealer that was not paired with another family brand? (AMC or Daimler/Chrysler) You don't see Chevrolet/Jeep dealers, do you? So why should it be any different with BMW and MINI?

Actually, it's funny you should mention that combo, because yes, there is a Chevrolet/Jeep dealer near me; Freedom Chevrolet/Jeep of Waterbury VT. We also have a Jeep/Isuzu dealer and a Mazda/VW/Ford/Jeep dealer. Taking a quick stroll through the local yellow pages, in my area we have a Saturn/Chrysler dealer, a Subaru/Hyundai dealer, a Ford/Toyota dealer, a Dodge/Daewoo dealer, a Dodge/Toyota dealer, a VW/Audi/Acura dealer, a Mazda/Saab dealer, a Lincoln/Mercury/Nissan dealer, a BMW/Mercedes/Land Rover/Porsche/Honda/Infiniti dealer, a Chevrolet/Pontiac/Buick/Cadillac/Chrysler/Dodge/Jeep dealer... You get the idea. I can't speak for how it is where you live, but up here "cross-pollination" is the norm, not the exception...

-Ricardo