CNW Marketing Research has figured out that the big three U.S. car companies (Chrysler, Ford, and General Motors) are losing about $436 for every vehicle they sell because of the large amount of franchised dealerships. To compare, Japanese car companies in the U.S. have less than 4,000 total dealerships, while the big three operate 15,741 once again proving that the Japanese are smaller and more efficient.
Maybe if the executives at these U.S. companies took math classes in Japan, they would realize that it’s probably a bad idea to operate four times as many dealerships while selling less than half the amount of cars Japanese dealerships move.
They cannot close down dealerships because they are franchised and U.S. franchise law requires the operators of each dealership to be willing to close down. If someone told TheFeed that we were costing them billions of dollars, but they couldn’t do anything about it, we'd play a little game called “extortion.”
Autoblog.com: Too Many Dealers Costing Auto Manufacturers Billions