The legal status of auto dealer franchises is still raging with bill on Gov. Newsom’s desk.
The California Legislature devoted much of its time this year to a battle over regulating wages and working conditions of fast food workers.
While the fast food battle drew much media attention, there was another, much quieter clash over the franchise business model, involving a much more important segment of the consumer economy: new car sales. When European and Asian automakers began peddling their vehicles in the United States after World War II, they also adopted the franchise system.
By and by, however, as major manufacturers began making their own electric cars, they began toying with the notion of emulating Tesla and bypassing franchises in favor of direct sales.
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