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The current dealer model is an outdated practice and adds to the cost of a vehicle. As has been seen in many other industries, manufacturers have benefited from direct sales. Dealers may argue about how they also have the service/repair centers. A service center doesn't require a dealership, if it did there would be no independent vehicle repair businesses available. In the current market of cost savings for both businesses and consumers streamlining the vehicle process from design to repair would make it better for consumers. While manufacturers could keep a franchise model and have both corporate owned locations/direct sales and "dealer" locations/sales as you see with fast food and other big name combination retailers. Overall the dealer model has seen its day and is no longer the only method that is proven to work. Let the manufacturers decide how they want to sale their vehicles instead of unions, governments, and cartels.