ST Alpha - "Most of those laws date to 1930s when there were rumors that GM was going to start its own dealer network to keep all the profits. " (Reading a Post)

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In response to ""Some states do NOT allow Tesla Showrooms to sell directly to buyers, thanks to protectionist laws implemented to protect dealer franchisees" That's " by prayformojo

Most of those laws date to 1930s when there were rumors that GM was going to start its own dealer network to keep all the profits.

Posted by iSpam (aka spamlet) Apr 3 '16, 08:30

It really complicated the auto bailouts because even though there are too many car dealers for the big 3 (seriously how many ford dealers vs Toyota dealers are in your town) they couldn't force any to close because of these types of laws.

There are also a ton of other dealership friendly laws. They almost always stay in families for example because while the automaker has to approve a new owner of a dealership Federal (?) law says they have to approve anyone that is related to the current owner.

I think it was planet money that did a great podcast on this topic. I listen to too many podcasts so I dont remember rxactly.

Responses:

that's interesting -- nm - prayformojo Apr 3, 08:31 2
- Ha! I was right for once. -- (link) - iSpam Apr 3, 08:35 1
  - good job! -- nm - prayformojo Apr 3, 09:41

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Most of those laws date to 1930s when there were rumors that GM was going to start its own dealer network to keep all the profits.

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