Um, no. Dealerships are an important stakeholder in the retailing process but the retail purchaser is absolutely the customer and the Big Three act that way. Otherwise why advertise, conduct focus groups, have car mags test drive vehicles, etc. There are internal teams that focus on dealer relationships just like major consumer product companies focus on their sales channels by building relationships with Walmart, Costco, the many grocery chains, etc. That doesn't mean that Walmart is P&G's customer.
They advertise because they mistakenly believe that advertising works. They advertise because their Customers -- the
'independent franchised dealerships' -- demand it. They advertise because their contracts with
'independent franchised dealerships' require that they foot the bill, and share the load. They advertise because, believe it or not, most people have no clue whatsoever that when they go to Billy Bob Bleuhardt's Big Blue World of Cars Chevrolet, that they are
NOT BUYING DIRECTLY from Chevy. That is why some people literally never take their cars anywhere for service, even an oil change, unless it is an
'authorized dealer'.
But make no mistake... Traditional automobile manufacturers are
NOT allowed to specify they types of cars that their
'independent franchised dealerships' sell. There is a big huge portion of the recent Michigan protectionist law that speaks precisely about what manufacturers cannot do. Manufacturers cannot make wholesale changes to their product line without the express consent of their
'independent franchised dealerships'. This is why electric cars
cannot be effectively sold and marketed through
'independent franchised dealerships' -- they have no interest in doing so. At all.
Here, have a look:
The People of the State of Michigan enact:
Sec. 14. (1) A manufacturer shall not do any of the following:
(a) Adopt, change, establish, or implement a plan or system for the allocation and distribution of new motor vehicles to new motor vehicle dealers that is arbitrary or capricious or based on unreasonable sales and service standards, or modify an existing plan or system that causes the plan or system to be arbitrary or capricious or based on unreasonable sales and service standards.
(b) If requested in writing by a new motor vehicle dealer, fail or refuse to advise or disclose to the dealer the basis on which new motor vehicles of the same line make are allocated or distributed to new motor vehicle dealers in this state and the basis on which the current allocation or distribution is being made or will be made to that new motor vehicle dealer.
(c) Refuse to deliver to a new motor vehicle dealer in reasonable quantities and within a reasonable time after receipt of the dealer’s order, any new motor vehicles that are covered by the dealer agreement and specifically publicly advertised in this state by the manufacturer as available for immediate delivery. However, the failure to deliver any motor vehicle is not considered a violation of this act if the failure is due to an act of God, a work stoppage or delay due to a strike or labor difficulty, a shortage of materials, a lack of manufacturing capacity, a freight embargo, or other cause over which the manufacturer has no control. If a manufacturer requires a new motor vehicle dealer to purchase essential service tools with a purchase price in the aggregate of more than $7,500.00 in order to receive a specific model of vehicle, the manufacturer shall on written request provide the dealer with a good faith estimate in writing of the number of vehicles of that specific model the dealer will be allocated in the model year in which the dealer is required to purchase the tool.
(d) Increase the price of a new motor vehicle that the new motor vehicle dealer had ordered, and then eventually delivered to, the same retail consumer for whom the vehicle was ordered, if the order was made before the dealer’s receipt of a written official price increase notification. A sales contract signed by a private retail consumer and binding on the dealer constitutes evidence of a vehicle order. In the event of manufacturer price reductions or cash rebates, the dealer shall pass on the amount of any reduction or rebate received by the dealer to the private retail consumer. Any price reduction in excess of $5.00 shall apply to all vehicles in the dealer’s inventory that were subject to the price reduction. A price difference applicable to new model or series motor vehicles at the time of the introduction of the new models or the series is not considered a price increase or price decrease. This subdivision does not apply to price changes caused by any of the following:
(i) The addition to a motor vehicle of required or optional equipment under state or federal law.
(ii) In the case of foreign made vehicles or components, revaluation of the United States dollar.
(iii) Any increase in transportation charges due to an increase in rates charged by a common carrier or transporter.
(e) Offer any of the following to any new motor vehicle dealer of a specific line make without making the same offer available to all other new motor vehicle dealers of the same line make:
(i) Any specific model or series of new motor vehicles manufactured for that line make.
(ii) Any incentives, rebates, bonuses, promotional items, or other similar benefits payable to the new motor vehicle dealer for selling new motor vehicles or purchasing new motor vehicles from the manufacturer.
(iii) Any consumer rebates, vehicle price reductions, or interest rate reductions or other changes to finance terms that benefit the consumer.
(iv) Any program that provides marketing and sales assistance to new motor vehicle dealers, including, but not limited to, internet listings, sales leads, marketing programs, and dealer recognition programs.
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