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There used to be a very few number of car companies who held a lot of power over dealerships and used to abuse that power, which led to laws protecting dealers
by jackmott42 3y ago
There used to be a very few number of car companies who held a lot of power over dealerships and used to abuse that power, which led to laws protecting dealers in ways that at least arguably made sense at the time, but don't anymore.
- j16sdiz 3y agoDo we now have lots of new car company? ( i don't think so ) Does car company now have less power? ( with subscription and OTA updates , I think they have more power than ever)
- ceejayoz 3y ago> Do we now have lots of new car company? ( i don't think so ) Yes, we do. The "Big Three" of Ford, GM, and Chrysler now face significant competition in the US from Japanese, German, Korean, etc. carmakers.
- foogazi 3y agoEuro / Asian auto companies exist now All new electric car companies too
- no_wizard 3y agoI think if we removed the dealership (sometimes called "franchise") laws that prevent manufacturers from selling directly to consumers, we could see more competition not just between existing players but also lowers the barrier for new entrants into the market. Tesla and Rivian, for example, wouldn't even be able to exist without this, the cost of setting up new dealerships is enormous otherwise.