The Battle for Control: Automakers and Dealers Clash Over Sales Models and Service Work

Growing tensions between franchised dealers and legacy automakers over evolving sales models and vehicle service work are emerging as key issues in statehouses across the US this year.

Several state dealer associations are backing legislation to amend franchise laws that govern the relationship between dealerships and the automakers whose brands they sell. Automakers argue that many of the laws governing the franchise system are outdated, add unnecessary costs and make it harder to adapt to changing market demands and customer expectations.

Meanwhile, dealers aim to preserve their role in the sales model, and are pushing to prevent automakers from competing directly with franchised retailers. In the end, the dealers want to ensure that they remain central to the retail experience for consumers.

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