Part of the recent discussion about the demise of Chrysler and GM has centered on their dealer network. One report stated that Chrysler has more than 3100 dealers, whereas Toyota has only 1200 dealers. Since Toyota sells far more cars, you’d think that Chrysler needs to cut their dealer network.
But that kind of begs the question. Why do car manufacturers need *any* dealers? In this day of supply chain management, internet shopping, and competitive business, why sell cars through retail outlets at all? Why not have a small number of “drive stations” where people can drive a car, and then let people customize their car with an online web site, and purchase their car online, having it delivered directly to them? Some people might balk at the thought, but I’ve now bought two cars without seeing them first, and the process is not as bad as people imagine – particularly for new cars.
If they really want to energize their business, they should think about shitcanning their entire dealer network. Has anyone actually had a good experience with a car dealer anyway?
oh yeah – they also need to hire engineers who can design competitive cars. Almost forgot about that. Otherwise sayonara.