3 ms·
This is partly true and mostly a baseless trope. Dealerships provide a financial buffer around OEMs allowing them to run slimmer margins, spin production up an
by throwaway0a5e 6y ago
This is partly true and mostly a baseless trope.
Dealerships provide a financial buffer around OEMs allowing them to run slimmer margins, spin production up and down slower, etc. They also provide a point of contact for the customer to complain to as needed (which has some value). As long as the overhead of the dealer system costs less than the benefit it confers it will still be used.
If the bean counters at GM thought it was cheaper to lobby to have laws repealed and do direct sales they'd have done it already.
- bradleyjg 6y agoIf that’s true repealing the laws will be no-op. Let’s find out.
- thaumasiotes 6y ago> If that’s true repealing the laws will be no-op. This doesn't quite follow; dealerships protected by the current laws might provide some value without providing as much value as the law allots to them. In that case, repeal would mean that dealerships continue existing, but become much less profitable.