THE FRANCHISE SYSTEM

A quote from Jeremy Anwyl

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Jeremy Anwyl, president, Edmunds.com
 
September 25, 2006 - 12:01 am ET
The early history was that cars were service-intensive and needed a lot of dealerships to keep them on the road. (Automakers) didn't have to invest capital. None of that is valid anymore.

Dealers are very active politically and have been very successful in getting legislative protection, which has created real barriers to change from outside the system. What's ironic is that there's no protection from change within the system. As a dealer, my biggest threat is other dealers. It's not going to be Home Depot that sets up a chain of dealerships.

It's not a dominant system because customers are demanding it. It has a lot of history to it, a lot of legal reasons. It's not such a wonderful thing for customers. Customers would probably buy cars in a different way if they had a choice. But they don't.

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