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Old 11-12-2012, 09:37 PM   #13
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Originally Posted by casino is no lie View Post
I for one would not mind overturning a law that prevents manufactures from engaging in direct sales of their products. By cutting out the middle man and implementing standardized operations across the board, it would result in lower costs to the manufacture, which would ultimately benefit the customer as manufacturers fight to attract customers to their brand(s) by lowering prices.

Dealerships would remain as would their employees. It's simply run by the parent company.

That's assuming the manufactures want to take on the additional liability, which they may very well not want to do.
I lean toward your last statement. I'm not sure the major car mfgs actually want to be in the retail store business.

Could they make more money if they internalized (sorry, guess the term is "vertically integrated") the dealer network? I think so. Or could they make the same amount of money and just pass the savings to the customers? Maybe.

But the mfgs might actually like having the private dealers out there owning the lots, dealing with the haggling, the service, the local environmental and employment regs, the community involvement, area-specific advertising, . And the customers in metro areas probably like having several dealerships they can play against each other for price and service.

Originally Posted by NFRs2000nyc View Post
I agree, with one caveat...they would ACTUALLY have to have a dealership...a full on brick and mortar dealership. If all Tesla dealers are located in a mall, with a car, a couch, and a small sales desk, where does the customer get their car serviced? Where do they get their car towed to? There should be a requirement that they MUST maintain a dealership with a full service garage, but they can own it themselves.
You're just shifting the regulation. Either open it up and let the mfgs compete for your business across the entire spectrum of price, service, convenience, product, availability and so on, or leave it alone.
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