The stock of Berkshire Hathaway Inc (NYSE:BRK.A) closed at $262,786.00 gaining 0.67% in yesterday’s trading session. Berkshire intends to build Austin’s second Mercedes-Benz franchise. However; it must be prepared to deal with the various objections arising from rival business as well as state law.
Establishment of dealership in areas surrounding Austin will be one of the provider’s top priorities. This follows a recent incidence that had the Texas law prohibit the company from owning both car manufacturers and car dealerships.
This project has been facing lot of opposition. Continental Imports Inc, which happens to be the owner of Mercedes-Benz of Austin, is opposing it strongly. The state law provides that an existing franchise dealership has every right to protest the opening of a new franchise. That is in case it lies at about 15 miles from Mercedes-Benz of Austin.
Berkshire Hathaway has been making efforts to convince the legislative session to carry out an overhaul. It needed it to change the state law related to companies owning both distribution as well as manufacturing. It turned out that the efforts have failed immensely despite a number of Buffet’s lawmakers making numerous appearances.
Tesla Inc (NASDAQ:TSLA) is also among those ones affected after it was prohibited from opening dealerships in Texas. A Republican from Dripping Springs, Jason Isaac is one of those that played a significant role towards sparking change. He had been making attempts to alter the last session of Texas’ law. The leader hoped that would help benefit a wide range of companies such as Tesla Inc and Berkshire Hathaway.
The reason as to why the administrative law judge chose to put the Austin plans on hold was in a bid to create more time for the clearance of pending issues. One of them was about clearing up Berkshire Hathaway Automotive’s potential ineligibility that barred it from making the move to establish any car dealership in the state.
The Irving-based company is currently enjoying support coming from Mercedes-Benz of Austin. Much is ongoing at the moment, but one of the top officials working with the company has opined that they are hoping for the best.
