Automakers should be allowed to own dealerships

TO THE EDITOR:

While the editorial “Car warranty reimbursement battle driven by naked politics” (autonews.com, Feb. 26) was on the money, there is one missing factor — bulk-buying. Generally, if I buy something in bulk, I get a discount. That often includes labor.

Automakers are already forced to work almost exclusively through dealerships. I would argue that if dealerships win the right to be paid at retail prices, which cannot be negotiated by automakers, then there should be a break in their monopoly to avoid abuse. In short, allow automakers to own dealerships and contract with other companies for warranty work.

Fair is fair, and I am pretty sure all dealership owners believe in a free market rather than a set of government-enforced monopolies.

DAVID ZATZ, Teaneck, N.J. The writer works for StellPower, a website for Stellantis news.

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