The laws are typically guaranteeing that manufacturers cannot sell directly in places where they also have dealers. Because a regional car dealer with $X0 mill

The laws are typically guaranteeing that manufacturers cannot sell directly in places where they also have dealers. Because a regional car dealer with $X0 million of revenue cannot compete with a multinational car manufacturer with $X0 billion of revenue. Any time a manufacturer didn't want a particular dealer around anymore, they could simply drop their prices and drive them out of business. That's not a healthy dynamic for a business relationship. One could argue - and I agree - that the best way to handle this is via the free market, and let manufacturers who do this sort of thing gradually lose their distribution network due to lack of trust. But the short-term collateral damage is high-profile bankruptcies, unemployment, and high auto prices.