Are there too many auto dealers?

[royalfan5]

http://www.freep.com/apps/pbcs.dll/article?AID=/20070202/BUSINESS01/70202043/1057/SPORTS02

I tend to agree with the writers assertion. A serious winnowing of dealerships would probably do Detroit some good. Farm Equipment has already went through this process and it has helped significantly.

[mdklatt]

I tend to agree with the writers assertion. A serious winnowing of dealerships would probably do Detroit some good.

Their main effort should be to stop making cars that suck. In the past year I've driven two brand new Chevy vehicles as rentals, and I wouldn't trade my seven year old Honda for either one.

[crawfish]

I really don't want that many car salesmen unemployed, out on the streets, though. Roving gangs of used car salesmen! Anarchy!

[jacru]

The market will winnow out the superfluous.

[royalfan5]

The market will winnow out the superfluous.
sometimes the market takes to long, and the dealer's lobby makes it hard for automakers to eliminate dealers.

[jacru]

if they don't have business, they don't stay around. If they have business they get to stay, even if you don't like them. The market is a beautiful thing.

[SoonerStormchaser]

I think there are too many dealerships in Norman. Maybe if we could get rid of Big Red Sports and Imports ;)

[royalfan5]

if they don't have business, they don't stay around. If they have business they get to stay, even if you don't like them. The market is a beautiful thing.
The laws are set up in most states where the automakers can't cut ties to dealerships they don't want. In a real market, the automakers shouldn't have their hands tied in regards to how many dealers they have. Dealers shouldn't have a right to a Chevy contract, yet in most states they do under the law. Many of these dealerships in rural areas are complete shams and add no benefits to the automaker. Why should they be forced to continue to carry those dealerships, especially when they don't meet minimum quality standards?