Part of that arrangement is a drive to restrict price competition by “consolidating” the number of car dealerships in the country.
Ford, for instance, is taking advantage of the recent crisis in the automotive industrial complex to slash the number of Ford sales outlets by 50 percent.
As reported by Automotive News, the motive is clear and classic:
With industry sales volumes forecast to rebound slowly, Ford and other automakers want to rationalize and improve the profitability of their sales networks by consolidating dealerships.
In plain language, this means Joe and Jane Sixpack will be facing higher prices in the future than they otherwise would have, sans “consolidation.”
Nobody hates competition like a capitalist.