douglasm, that makes sense [[and I agree), but it doesn't jive with people's perceptions with regards to other retailers. For example, you will see the same fast food chains and the same gas stations every few miles. If they are able to all have enough customers, people think that car dealers should be the same. But they are not taking into account the low sales volume of a car dealer vis-a-vis other retailers.

I think that GM and Chrysler should offer the dealers the chance to stay in business if they are able & willing to cover the cost of all those things that the automakers are claiming that they must bear.

As to why there are so many dealers so close: remember way back when, cars required a lot more service than they do today. One of the selling points was that if you bought a certain brand of car, you would have a dealer nearby to get service.