In examining the current woes of the American auto industry (among which is the fact that GM has 7,000 dealers compared to Toyota’s 1,500), blogger hilzoy at Obsidian Wings asks why there can’t be a serious rethinking of how cars are sold:
For instance, is it obvious that automobiles have to be sold in franchises, as opposed to stores in which the storeowner can stock whichever cars seem most likely to sell, the way bookstores do?
The obstacle to such innovative thinking? Texas. The car dealership associations in our state, as in most others, have the Legislature in the palms of their well-manicured hands. Ironically, their self-interested history in promoting straightjacket state laws to protect themselves against the manufacturers may mean those that carry GM, Ford, and Chrysler products will soon be out of business.
