Dealers are usually a great asset to an OEM. That being said, they also can hurt the OEM as well. Case in point, Joe Schmoe owns a Chevrolet and Kia franchise but they focus more on their Kia brand. This causes the Chevrolet brand to perform badly in the market.

The OEM notices this and tries to work with the dealer to change this. The dealer chooses not to do this and continues their current strategy. The OEM is now in a position where they are losing sales due to an unmotivated dealer so they have no choice but to attempt to close down that dealer point.

THEY CANT!!! Most state franchise laws are so biased towards the dealer that the OEM has to just sit and take it.

This is just one example and there are many more scenarios where this occurs. I dont think the OEM's want to go this route but feel like they have to when they have almost ZERO control of their dealers after they give them a franchise agreement.