Dealer Protections vs. Modern World

What’s happening? CATO writes about how car dealership protections fit in the modern world. CATO points to 3 reasons why the old justifications for protection no longer fit. (1) dealerships aren’t mom and pop shops anymore “The top 10 dealership groups in America have annual revenues around $100 billion—more than any car company. ” (2) foreign makers make the auto market far more competitive (3) there are different sales models that don’t involve inventory on hand

Why is this important? Things change and adapt including laws and rules.

How will this be important? Tesla isn’t the only vehicle company outside the traditional box, Rivian, Fisker, + more. The market is growing.

CATO | Reforming Michigan Vehicle Direct Sales Laws