Ways To Improve Auto Industry

For starters, eliminate the dealer network monopoly and allow auto companies to sell direct to consumers. The state's outdated dealer franchise laws are only their to help the dealers rather than the consumers who keep them in business.

Once those laws are fixed, it would not be the end of the dealer...even though that is what they are deathly afraid of. This change would cause them to get creative and there is room for opportunities.

For example, they could still sell new cars but use them as showrooms with one car for each type instead of car lots with tons of inventory that they are constantly trying to get rid of. People would come by to see the cars in person but would then order their car from the car manufacturer via the dealership. The dealer would get commissions for any cars sold.

Dealers could also remain used car sellers but be part of a network of national dealers like a CarMax. Another idea is for dealers to become defacto service providers...they would provide financing services, perform repair services, provide extended warranties, act as car delivery locations, add after-market additions for custom looks, etc. Car salespeople could now become consultants rather than what people think of them right now.

With all these changes, the car manufacturers could then become built to order manufacturers where consumers can order the exact car they want for a lot less than it costs today because they would not have to produce all of that extra inventory in order to anticipate demand. They could even create a modular manufacturing process whereby consumers could build their own cars and have a completely custom designed vehicle.