Sources: Automotive News , 
quote: The National Automobile Dealers Association (NADA) said that dealerships are necessary to ensure competitive prices for customers
quote: 2 or 3 is still few enough for an oligopoly - look at the phone companies, how Verizon and AT&T both settle around the same high prices, and they sell basically the same plans as each other.
quote: I'm not convinced that dealerships really increase costs all that much.
quote: For companies/brands like Telsa, Smart, Fiat, etc, the a bad dealer can spoil large areas and decrease/alter brand perception significantly.
quote: Not being an American, I would have thought any reputable manufacturer would stipulate things like the customer service standards, visibility from a main road, and amount of departure from their recommended pricing a dealer can offer when putting out tenders for dealers in an area. What is to stop a manufacturer from terminating their contract with a "bad dealer" if that dealer fails to comply with the terms of their contract?
quote: I'd recommend a gradual phaseout of dealer legislation, though, to avoid any disruptive damage. Maybe allow 50k direct sales per manufacturer in the first year and then increase the cap slowly year after year. Dealerships shutting down chaotically could leave customers stranded for service.
quote: I can't say I disagree with you about legislation. I'm just telling you why I think a phaseout will be more palatable.
quote: You're overestimating the work needed for direct sales, though. Contractors will be lining up...
quote: Can you name anything else that matches those characteristics?
quote: Anyway, I'm not trying to make you empathize with the incoming plight of dealers with direct sales. I'm just telling you that it's going to be disruptive once it catches on.