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
Auto manufacturers should be allowed to sell direct to consumers (like every other manufacturer may). The protectionist regulations requiring dealership sales channels have always been to help car dealers, not consumers. (in fact they harm consumers since their profits are based not on sales but on repairs--lots of them). This protectionist requirement goes against the free market that NADA supporters purport to embrace. Startups like Tesla, who have a superior product, must be allowed to show and sell that product in order to have a chance in the marketplace (a startup with an uncertain future cannot create a competing network of dealerships, and will be stuck in a catch-22 with current regulation). Consumers want innovative products, and benefit from new entrants into this stagnant space.