Regulations Outline Seven Degrees of Separation Between Dealer and Manufacturers

[dramonte]

Worthy Industry Counsel;

Address for me the validity of the statement; Manufacturers are not permitted to monopolize in an attempt to force controls upon delaers and likewise the dealers are not to attempt to force controls on the respective manufacturers.

[elawless]

Is there any more context behind that?

[dramonte]

Actually, I am seeking arguments and references to support the validity of such a statement. I could start a dialogue with you on it, but all I have to share would be theory.

[mchastek]

Actually, I am seeking arguments and references to support the validity of such a statement. I could start a dialogue with you on it, but all I have to share would be theory.

If you have the time, I'd like to hear your theory. I think it would be a great start to this discussion.

[elawless]

I agree, a start is a start. Maybe we'll even get some others involved.

[dramonte]

Afford Me This Opportunity;

Acceptance of the follwoing theory would support very well the position my bosses have taken on the future of the industry. I hope the dialogue generated hereby is worthy, but most of all, I seek the direction necessary to properly source the info.

Auto manufacturers are under the scrutiny of the law to avoid forming any inkling of a monopoly over the dealers, and the dealers have the same scrutiny in the name of reciprocity. This 'scrutiny' when written into the governance of the industry is recognized as and stated, 'seven degrees of separation.'

Every retail sector, with only rare exception, has successfully implemented the strategy of consolidation in recent history. We have witnessed alliances, aquisitions, and mergers of every variety as banks, merchant shops, and entire industry conglomerates have consolidated for the sake of minimizing overhead and identifying workable plans for maximizing profits. So would be the case in retail automotive if there was no governance prohibiting the essential basis of the consolidation model. In the instance of our beloved industry sector, to consolidate is to monopolize. And, of course, the theory of seven degrees of separation doesn't afford the luxury to either the dealers or the manufacturers.

It tends to be a good thing, however, each time I hear it presented by my leadership. Auto Buyer Consultants visionaries believe the void created by the seven degrees is the perfect niche in an industry sector where entry is rarely granted due solely to one's raw innovative prowess. But, this seven degrees has created a demand - and where there is demand to be satisfied, then it is but the essence of our capitalism to address said demand and in turn supply the solution that will benefit both demander and supplier. This is the view taken and promoted within my company.

If the theory of seven degrees of separation proves true in retail automotive, then the projects that will provide the tools of consolidation for the industry are certainly salutary. Almost every accomplished dealer principal has a dream of ridding himself of some brick and mortar generated overhead. And, the smaller, less established dealer principal is for the most part a hostage of his brick and mortar, trapped in a nightmare about the same debt. In the instances which I have been privvy to that are currently under study in these offices, patentable technologies, including software to create a genetic code (for lack of better explanation) of each dealer business, would facilitate the collaboration of several (from 3, up to 7) common nameplate dealer principals in a central brick and mortar structure for operations. The genetic thumbprint of each dealer being used as a unique identifier of his/her own business personality and growth continuum, the center of operations would serve to drastically reduce the overhead affiliated with traditional dealer operations. In turn, the successfully consolidated dealers could pool a portion of their savings to acquire surrounding properties that would sustain plans to create the mega-dealerships of the future. Less overhead, more heads for directing and managing all aspects of the core business, and enormous potential for growth and innovation...

This is but a glimpse into the multi-chapter approach to "The Future of the Largest Automotive Market Place..." my leadership is prescribing. I am almost sold, but I really would like to have the source references for that 'seven degrees of separation' thing I keep listening to them talk about. Does this help? Can either of you refer me, warmly, to the authority on the matter?

Any gesture in kind regard to my request would be enormously appreciated.

[twofatguys]

A monopoly in the case of Saturn dealers would be fine by me. The situation is that GM requires Saturn dealers to conduct their sales in a certain way, at full retail, and with no additional dealer add-ons. But more than half of the Saturn dealers around me do as they please and GM doesn't do anything about it. I think they're afraid of repurcussions in case the dealership in question starts talking about monopolies. When Saturn dealers do as they should, not as they please, the customer benefits. When the dealers do as they please, the customer gets screwed.