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It’s an outdated law (IMO) meant to protect car dealerships from manufacturers opening up dealerships down the road and undercutting them. I think it’s similar

It’s an outdated law (IMO) meant to protect car dealerships from manufacturers opening up dealerships down the road and undercutting them. I think it’s similar to the law preventing movie studios from opening theaters.

belltaco 5y ago
That plus heavy lobbying and donations by car dealerships making a lot of money. Electric cars are also bad for their fat profit margins on service for ICE cars.
PaulDavisThe1st 5y ago
In what sense is it outdated? What has changed that means that it used to be relevant, and now no longer is?
- jsight 5y ago
  If I wanted the status quo, I'd argue that dealers have gained enough power to accomplish the same thing without state laws. Look at what happened when US manufacturers tried to decrease the number of dealerships for an example. They fought it out with a barrage of lawsuits and the efforts were only really minimally successful. Its really unlikely that existing brands would be able to change at this point, at least the US brands.
- trey-jones 5y ago
  Maybe only perspective. In my view, car manufacturers should be competing with other car manufacturers, rather than independently operated dealerships. If a dealership provides a value to consumers then it should survive. If not, then the consumers are better off without them. At the very least, I would like the option to buy directly, since I probably don't use the services provided by the dealership anyway.
- janderson215 5y ago
  Emphasizing that it is my opinion, I think it’s easier to reach consumers directly. I haven’t researched the history of car dealerships, but I’m guessing (dangerous) that they came into existence because the locals knew the local market better. Now that they exist, they need to be protected to prevent too much unemployment too fast in local job markets. Anecdotal, but I haven’t heard people talking about the wonderful experience they recently had at their car dealership. I think some of that comes from legal protections and getting comfy.
  - rkk3 5y ago
    and selling the exact same product to consumers for widely different amounts.
- tjalfi 5y ago
  Dealer's Choice[0] explains why these laws were originally passed; Ford and GM forced dealerships to accept new cars during the 1920 depression and the Great Depression. The laws persist because car dealerships are well-connected politically and donate heavily to campaigns; it's just a special interest group protecting their business model. [0] https://www.newyorker.com/magazine/2006/09/04/dealers-choice-2 https://www.newyorker.com/magazine/2006/09/04/dealers-choice...
reacharavindh 5y ago
Suddenly Movie studios:theaters::Apple:AppStore comes to mind.
- mschuster91 5y ago
  The most interesting part re/ movie studios is Disney. I seriously wonder when someone finally brings down the hammer on them... they own the production companies, the studios, the after-market entetainment (Disney World) and so many franchises that they can outright extort cinema owners to licensing terms that are extremely favorable towards Disney. MCU, Star Wars, Avatar... get blocked from showing them as a cinema owner and you can close shop. Especially with how many new films the MCU alone will bring up over the next years.
  - lotsofpulp 5y ago
    >I seriously wonder when someone finally brings down the hammer on them Probably not anytime soon, since in less than a year, they will be able to own the cinemas.
    - mschuster91 5y ago
      At that point however I see antitrust action inevitable (pardon the pun).
lotsofpulp 5y ago
https://en.wikipedia.org/wiki/United_States_v._Paramount_Pictures,_Inc https://en.wikipedia.org/wiki/United_States_v._Paramount_Pic.... The "Paramount Decree" is lifted as of Aug 7, 2020 with a 2 year sunset period, so as of Aug 7, 2022, there is no law preventing studios from owning theaters.

belltaco 5y ago

That plus heavy lobbying and donations by car dealerships making a lot of money. Electric cars are also bad for their fat profit margins on service for ICE cars.

PaulDavisThe1st 5y ago

In what sense is it outdated? What has changed that means that it used to be relevant, and now no longer is?

jsight 5y ago
If I wanted the status quo, I'd argue that dealers have gained enough power to accomplish the same thing without state laws. Look at what happened when US manufacturers tried to decrease the number of dealerships for an example. They fought it out with a barrage of lawsuits and the efforts were only really minimally successful. Its really unlikely that existing brands would be able to change at this point, at least the US brands.
trey-jones 5y ago
Maybe only perspective. In my view, car manufacturers should be competing with other car manufacturers, rather than independently operated dealerships. If a dealership provides a value to consumers then it should survive. If not, then the consumers are better off without them. At the very least, I would like the option to buy directly, since I probably don't use the services provided by the dealership anyway.
janderson215 5y ago
Emphasizing that it is my opinion, I think it’s easier to reach consumers directly. I haven’t researched the history of car dealerships, but I’m guessing (dangerous) that they came into existence because the locals knew the local market better. Now that they exist, they need to be protected to prevent too much unemployment too fast in local job markets. Anecdotal, but I haven’t heard people talking about the wonderful experience they recently had at their car dealership. I think some of that comes from legal protections and getting comfy.
- rkk3 5y ago
  and selling the exact same product to consumers for widely different amounts.
tjalfi 5y ago
Dealer's Choice[0] explains why these laws were originally passed; Ford and GM forced dealerships to accept new cars during the 1920 depression and the Great Depression. The laws persist because car dealerships are well-connected politically and donate heavily to campaigns; it's just a special interest group protecting their business model. [0] https://www.newyorker.com/magazine/2006/09/04/dealers-choice-2 https://www.newyorker.com/magazine/2006/09/04/dealers-choice...

reacharavindh 5y ago

Suddenly Movie studios:theaters::Apple:AppStore comes to mind.

mschuster91 5y ago
The most interesting part re/ movie studios is Disney. I seriously wonder when someone finally brings down the hammer on them... they own the production companies, the studios, the after-market entetainment (Disney World) and so many franchises that they can outright extort cinema owners to licensing terms that are extremely favorable towards Disney. MCU, Star Wars, Avatar... get blocked from showing them as a cinema owner and you can close shop. Especially with how many new films the MCU alone will bring up over the next years.
- lotsofpulp 5y ago
  >I seriously wonder when someone finally brings down the hammer on them Probably not anytime soon, since in less than a year, they will be able to own the cinemas.
  - mschuster91 5y ago
    At that point however I see antitrust action inevitable (pardon the pun).

lotsofpulp 5y ago

https://en.wikipedia.org/wiki/United_States_v._Paramount_Pictures,_Inc https://en.wikipedia.org/wiki/United_States_v._Paramount_Pic.... The "Paramount Decree" is lifted as of Aug 7, 2020 with a 2 year sunset period, so as of Aug 7, 2022, there is no law preventing studios from owning theaters.