Someone help me out here. Is an auto dealer subsidized by the manufacturer? I always assumed it was like a franchisee. The more, the better.
It is a franchise, but more is not necessarily better. This allows GM to purge its underperforming dealers so as to concentrate its efforts--and money--on those dealers that are performing better. It costs a lot of money for a franchisor to monitor and provide support to a franchisee, and this lessens that.