Detroit Racing Forums - View Single Post - Automakers told to cut dealerships by 2/3's.

lab1702 · 02-03-2007, 04:35 PM

I don't know exactly how the dealerships work.. is everyone who works there an employee of the manufacturer?

If not, how can the manufacturer decide how many dealerships to have, isn't that a function of supply and demand?

I mean, if there are enough customers to keep 2 dealers busy in one town, they'll stay, and if not, the least profitable one would eventually have to close down?

02-03-2007, 04:35 PM	#3
lab1702 Registered User Senior Member Join Date: Aug 2005 Location: Canton, MI Posts: 1,698	I don't know exactly how the dealerships work.. is everyone who works there an employee of the manufacturer? If not, how can the manufacturer decide how many dealerships to have, isn't that a function of supply and demand? I mean, if there are enough customers to keep 2 dealers busy in one town, they'll stay, and if not, the least profitable one would eventually have to close down?