Dealerships are more entrenched, but the economics aren't that different from big box stores selling white goods, bike shops selling bikes, etc. Retailing is h

Dealerships are more entrenched, but the economics aren't that different from big box stores selling white goods, bike shops selling bikes, etc. Retailing is hard, expensive, and idiosyncratic; providing adequate after sale service is worse. A manufacturer might reasonably prefer to make and market cars, while shuffling the inventory risk and retailing cost off to someone else.