DM CONFIDENTIAL — For those not following the collapse of the American car industry, three companies once reigned supreme, with all three being U.S. based businesses - General Motors, Ford, and Chrysler. Much has been written about Ford Motor Company and its founder Henry Ford when he made the automobile available for the masses. That 15,000 who employ more than 100,000 people will drop in number. One of those dealers, a profitable one serving a poorer area of Chicago, doubts the logic that cutting dealers makes business sense. They buy the inventory, own / lease the land, buildings, pay for staff, etc. It’s a big investment and can be big business, just ask Red McCombs, whose network of auto dealers in Texas provided the funds for him to own the San Antonio Spurs and New Orleans Saints. As a result, dealers have received favorable treatment from state franchise laws. An article in the Washington Times says, “Over the years car dealers have succeeded in persuading state legislatures to pass a wide array of anti-consumer laws that protect car dealers at the expense of consumers, and ultimately at the expense of the health of the U.S. auto industry. From laws that effectively prohibit new dealerships within a designated radius of an existing dealership selling the same make auto, to restrictions on warranty repair work or offering other auto-related services to consumers, including financing, insurance, and parts, to prohibitions on automobile manufacturers selling cars themselves - car dealers epitomize anti-consumer protectionism. Affiliate marketers are being driven out of business by state laws, whereas affiliate car sellers had numerous laws to help them stay in business. And, while affiliates receive support from the company’s and networks whose products they promote, they don’t receive anywhere near the level of support that the dealers did. Article by DMConfidential.