The original purpose was so the dealership wouldn’t put all the money into their business only to have the OEM pull the rug out from under them. And that seems like a totally legit reason.
A lot of the laws because of this are, if you enter into a dealership agreement, you can’t exit.
So Tesla and Rivian are in the clear in a lot of places. Where things get bat shit fucked is where the dealerships then step in to get the laws changed to say all OEMs must use a dealership. Now it’s not about protecting their investment it’s just mafia type shit.
That being said, I think VW spinning off a new company scout to bypass the rules they signed up for as VW is breaking the spirit of the agreement and I wouldn’t be surprised if it was a legal violation as well. Otherwise the dealerships could have put all this money in, then they spin up VW2.0 and transfer all assets to the new Corp and the dealerships get fucked.
The contract between the dealer and manufacturer doesn’t need to be any more complicated than what occurs between a McDonald’s and a franchise location.
The original purpose was so the dealership wouldn’t put all the money into their business only to have the OEM pull the rug out from under them. And that seems like a totally legit reason.
A lot of the laws because of this are, if you enter into a dealership agreement, you can’t exit.
So Tesla and Rivian are in the clear in a lot of places. Where things get bat shit fucked is where the dealerships then step in to get the laws changed to say all OEMs must use a dealership. Now it’s not about protecting their investment it’s just mafia type shit.
That being said, I think VW spinning off a new company scout to bypass the rules they signed up for as VW is breaking the spirit of the agreement and I wouldn’t be surprised if it was a legal violation as well. Otherwise the dealerships could have put all this money in, then they spin up VW2.0 and transfer all assets to the new Corp and the dealerships get fucked.
Solid points, but we want the dealerships to get fucked. Slimy parasitic middlemen.
The contract between the dealer and manufacturer doesn’t need to be any more complicated than what occurs between a McDonald’s and a franchise location.