The Evolution of Car Dealerships: A Deep Dive into their Origins and Impact on the Economy

Are car dealerships useless these days? When I went to go buy my 2023 Nissan Z, I couldn’t help but wonder to myself why these places still exist. So I decided to go research it. And apparently, this started all the way back in the early 1900s by Henry Ford, who had gone from making just a few thousand units of his car every year to 1.9 million by 1920. And to make that happen, Henry Ford leaned on his business partner, James Cousins, who was responsible for all the sales and distribution. And he decided to reach out to a few car salesmen, but he didn’t want to make it easy on them. What James told them is that you had to pay Ford a huge upfront fee, plus pay for the car in full on demand when it arrived. And then Henry Ford would tell these dealers that they also had to stock a bunch of used car parts just in case the cars broke down and they needed a showroom so that consumers felt comfortable when they came in to buy a car. But most importantly, Henry Ford and James both said that these people could only sell Fords because of the crazy demand. No one said no, and these dealerships began making money insanely fast. But they were still always worried that Ford would pull a fast one on them and stop giving them cars. So over time, these dealerships stocked up as much money as they Could until they became congressman, mayors and even presidents. So they could start to introduce their own laws that would protect dealerships from the very suppliers who made their vehicles. Now, dealerships claim that they’re very important to the local economy. But I’m curious on your thoughts on if that’s an acceptable answer. Or should we maybe just start to expect two day shipping here pretty soon? I’m Alex Martini. Thanks for follow