the big 3 have let this go on for so long, why bail them out?
the big 3 have let this go on for so long, why bail them out?
There's an element of truth in this, of course. Over the past twenty years there has been a big effort by manufacturers to address this with some degree of success. Dealerships are rated by CSI (Customer Satisfaction Index). Poor CSI can cause a lot of bad things including being unable to expand the operations by purchasing other dealerships. There are other ways that dealerships get hammered by poor CSI scores. Surprising, the average dealership does not make that much when they roll a car. The profits are in setting up the finance, selling add-ons like warranties and in the service department.
Dealerships have a huge impact on local economies. They hire a lot of people and give them opportunity to earn good money. They purchase a huge variety of goods and services and, generally, are one of the first stops for any local youth/charity/whatever organization trying to raise money.
As a disclaimer, I am not directly in the car business but a lot of my clients are.
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