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
Henry Ford determined to use an independent dealership model to enable him to sell his Model T Ford throughout the country. This distribution model has become as outdated as that first car. For the consumer it is costly, restrictive and no longer efficient. Consumers will retain a wide choice of vehicles with direct selling and leasing by manufacturers. Restrictions to direct selling encouraged by franchised auto dealers and dealer associations and mandated by the states stifle the most innovative auto manufacturers and hamper future developments by them.