Quote:
Originally Posted by 908/930
Different setup, dealers are really service centers that sell cars. Usually not owned by the big three.
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Yes.
My brother runs the shop for the largest Toyota dealer in S. Florida.
That's where the real money is made.
The manufacturers need service centers to maintain brand equity.
Manufacturer warranty work performed through dealers the first few years helps create positive feelings for owners and establishes brand loyalty.
How else does a manufacturer deal with a recall of millions of vehicles for a critical defect?
Sure they could open service centers and do away with dealers but now they are operating cost centers.
There is a tremendous amount of legacy infrastructure and operating procedures that would need to be undone and rebuilt.
It would take a decade and billions to do.
By the time you recouped just the cost much less started to see profit there will be a better way to do it.
Tesla can do it because they are starting from ground zero and are really still a boutique niche manufacturer.