U.S. Dealers Defend Franchise System Amid Tesla’s Threat
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Franchised auto dealers benefit the consumer, the dealerships and the cities in which they operate, the chairman of National Automobile Dealers Association said.
The model of selling autos through independent franchisees is being challenged by Tesla Motors Inc., the electric-car maker that operates its own showrooms and takes orders over the Internet. The Palo Alto, California-based company has reached agreements with dealer groups and state legislatures to allow limited direct sales.