GM also has created a company called Saturn Retail Experience, designed to build co-owned Saturn dealerships in major markets. GM insists Saturn Retail Enterprises is a separate company that does not put GM into the dealership business. Daewoo, the South Korean automaker that recently entered the U.S. market, has built some factory-owned stores which, in turn, has led to some legislation banning such stores. The automakers' actions are spurred in part by concern over the rapid and uncontrolled growth of Internet sites selling new cars. They also fear dealership chains such as AutoNation and CarMax, which, with huge market share, have plenty of control over how cars are sold and whether buyers are happy.
Dealers have other concerns.
They say the manufacturers dictate every detail, from the size of the showroom to what cars they can sell. But John Bode, one of the GM lobbyists in North Carolina, says the dealers are seeking unfair government protection. They are trying to dictate market conditions by law. Car dealers wield a lot of clout in state capitols. It's hard to imagine a political district that doesn't have at least one new car dealership.