FTC to Host Public Workshop Examining the U.S. Auto Distribution System Workshop Will Explore Competition, State Regulations, and Emerging Trends in the Industry, Project No. P131202
The new car dealer franchise system is necessary in order to protect the public from the manufacturers. Competition is alive and well in the current franchise system. Ford tried to own the dealerships in Utah and Oklahoma. It was a complete failure. GM has tried it and it too failed. The marketplace needs competition to insure the consumer has choices and can shop it's marketplace for price, quality and options. If a manufacturer sells directly to the consumer, there is n protection for the consumer. The communities that have local dealers benefit because the dealers are so involved in school, civil and other projects. Advertising alone, because of dealer competition, runs in the Billions. Local jobs would also be at peril. Good employees are hard to find and dealers compete with each other for these talented people. Manufacturers would have a cookie cutter approach to ALL their processes and that would restrict the vital competition needed to protect the public. Leave the system alone. It works for the consumer.