The last two tumultuous years have also generated record profits, perhaps leaving some dealers feeling that their operations may have peaked.
An agency model would leave just scraps for local retailers and destroy the value of franchises.
Let’s cut to the chase: If the tenets of capitalism are correct, and if dealers are truly endangered, the value of their businesses should be going down.
Those inherited laws, which date back to the early days of the U.S.
Franchised dealerships are healthier than they’ve been in decades, and the profitable retailing lessons learned by both dealers and automakers during the COVID-19 pandemic appear to have fundamentally transformed this industry for the better.
Yes, consolidation in auto retailing certainly may lead to other concerns down the road, but I’m confident that the “end of franchised auto dealers” isn’t on anybody’s list of realistic threats.