The manufacturer can set the invoice price at whatever they want already. Dealerships are only negotiating their piece of the pie, they aren't actually able to alter the core price of the vehicle. The market/competition determines what a manufacturer charges, the dealerships just obfuscate the exact figure.

So I agree with the other commentor, they exist to extract local money, to make a few locals rich, the manufacturer's piece of the pie is whatever they think they can charge either way. If you cut out dealerships you make prices less obscure and force manufacturers to compete more closely with one another, and also save the middleman rent-seeking.

Well, we've recently seen dealers marking up cars insane prices, so maybe direct sales at MSRP do help keep money local.

Perhaps you can gaze wistfully at their yacht you can't hope to afford in the local marina you can't afford moorage at too!

Fun times for all.

I mean, I'm not really trying to defend them. Just saying that having the wealth local gives a better chance of taxing it locally.

I'm game for how this week help local folks, though. My gut is it will just be fewer rich people at the very top of these companies.