The Birth of the Franchised Dealer Model

Authors

Daniel A. Crane, University of Michigan - Ann ArborFollow

Document Type

Book Chapter

Publication Date

2025

Abstract

Chapter 1 traces the history of the franchise dealer model of car distribution, from the early wild west days of the internal combustion automobile to the political confrontations between Detroit’s Big Three and the “mom and pop” car dealers during the mid-twentieth century. The chapter examines the thinking of legendary management figures such as Henry Ford and Alfred P. Sloan, explains the dealer protection rationale behind state franchise dealer laws, and shows how the legacy car companies largely acquiesced in those laws until Tesla’s entry onto the scene.

Comments

This material has been published in Direct Hit: How Tesla Went Straight to Consumers and Smashed the Car Dealers' Monopoly by Daniel A. Crane, DOI: https://dx.doi.org/10.1017/9781009687911. This version is free to view and download for private research and study only. Not for re-distribution or re-use. © Cambridge University Press

Publication Information & Recommended Citation

Crane, Daniel A. “The Birth of the Franchised Dealer Model.” In Direct Hit: How Tesla Went Straight to Consumers and Smashed the Car Dealers’ Monopoly, 9–23. Cambridge: Cambridge University Press, 2025. DOI: https://doi.org/10.1017/9781009687911.002