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A lot of the covid supply chain high prices were(and are being) captured by car dealerships who then used a portion to buy off politicians to stop car companies

A lot of the covid supply chain high prices were(and are being) captured by car dealerships who then used a portion to buy off politicians to stop car companies from selling cars directly, on top of existing laws. E.g. https://reason.com/2023/06/15/florida-doubles-down-on-anti-competitive-car-dealership-law/#:~:text=Ron%20DeSantis%20signed%20H.B.%20637,dealerships%20to%20act%20as%20middlemen https://reason.com/2023/06/15/florida-doubles-down-on-anti-c.... So car companies couldn't build a rainy day cash fund or increase wages or pay bonuses(or pay dividends to shareholders). Dealer markups on some high demand vehicles are still insane, easily 10k to 20k+. I wish more car companies could sell directly like Tesla does(which is banned from selling in several states including Texas where they have a big new factory).

onlyrealcuzzo 3y ago
> Dealer markups on some high demand vehicles are still insane, easily 10k to 20k+. So there's obviously a demand for them at that price. Sure, maybe Ford should be able to sell cars themselves if they want to. But they'd be selling them at the same price and pocketing that extra $10-$20k themselves, rather than letting the consumer keep it.
- nradov 3y ago
  Manufacturers tend not to raise prices when there is a shortage due to supply constraints. This hurts their revenue but maintains brand loyalty. Many pickup truck buyers are intensely loyal to a particular brand and the manufacturers are smart enough not to burn that goodwill. They would ban dealer mark-ups if they could.
csours 3y ago
Disclosure: I work for GM. Anything here is solely my own opinion or understanding. For the highest priced and shortest supply vehicles, yes, dealerships added huge "dealership fees"; automakers did quite well themselves. The bonuses (for salaried employees) and profit sharing (for hourly union workers) were good in the past few years.

onlyrealcuzzo 3y ago

> Dealer markups on some high demand vehicles are still insane, easily 10k to 20k+. So there's obviously a demand for them at that price. Sure, maybe Ford should be able to sell cars themselves if they want to. But they'd be selling them at the same price and pocketing that extra $10-$20k themselves, rather than letting the consumer keep it.

nradov 3y ago
Manufacturers tend not to raise prices when there is a shortage due to supply constraints. This hurts their revenue but maintains brand loyalty. Many pickup truck buyers are intensely loyal to a particular brand and the manufacturers are smart enough not to burn that goodwill. They would ban dealer mark-ups if they could.

csours 3y ago

Disclosure: I work for GM. Anything here is solely my own opinion or understanding. For the highest priced and shortest supply vehicles, yes, dealerships added huge "dealership fees"; automakers did quite well themselves. The bonuses (for salaried employees) and profit sharing (for hourly union workers) were good in the past few years.