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by camiller
4998 days ago
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Say for example there are five Chevy dealerships in the greater Omaha area. If General Motors were allowed to own one itself it could give itself discounts internally such that it could undersell the other dealers and put them out of business. Once the competition was gone it could then raise prices harming consumers. Competition is good for consumers and the laws in question are aimed at protecting consumers. Yes I know they are also competing with other brands, but some people are brand loyal enough that they would not switch to Ford or Chrysler. |
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You're also ignoring that the brand (e.g. Chevy) is selling to all of the dealerships. If they raise the price, the dealerships all have to pay if they want the car/truck/etc. Do the dealerships really have that much bargaining power?