November 25, 2017
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Is the reduction of auto dealerships an inevitable business adjustment?

General Motors and Chrysler both have announced their plans to eliminate dealerships 1,100 and 789, respectively. Was this move inevitable, and perhaps hastened by a bad economy? Just as Maine towns once had several grocery stores and now typically have one or two, is the reduction in dealerships a move toward efficiency? Will the large “auto malls” that may dominate the market mean a loss of customer service and usher in a different sort of car culture? If the dealership that has been a major anchor business in a small town loses its product, what will happen to it?


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