Auto Distribution; Current Issues and Future Trends A Federal Trade Commission Workshop

Manufacturers of all types of automobiles did not have the desire, capital or expertise to sell cars and trucks to consumers at the point when vehicles became accessible to the middle class. They were in the business of manufacturing a product and came to understand that if they could sell their product to a local gas station owner or farm supply store at a profit, they could use their capital for manufacturing tools and machinery and developing new products (R & D). Carmakers had no interest in putting together real estate and sales teams to sell their products; they simply needed to sell their cars and trucks to someone who believed they could sell it to an end-user for more than they paid the people who made it.

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