Yea but this works, what, once? And now the manufacturer has to deal with the things the dealer was doing like customer service, hiring sales staff, training technicians, etc.
“Oh don’t open a Chevy dealership, in 6 months they’ll come in and undercut you”. And then there it is. Either you don’t open a dealership (fine) or the manufacturer builds a reputation for not undercutting dealers (also fine).
IMO the law was protecting special interests from the start. This is an example of poorly regulating capitalism.