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What does sense of purpose mean?

Does it seriously make sense to cut dealerships, when the purpose of the auto manufacturers is to sell cars? I mean, I can see them cutting some of the incentives and discounts to the dealers, but what good does it do to dump those selling cars?

  • Answer:

    There are cars spread all over the country, with many dealerships out there as well. Demand is not as high as they need to be able to stock all existing dealerships. By keeping extra ones open, that means more cars they have to manufacture in order to keep those extra dealers in stock. By reducing the number of dealerships, they reduce the amount of vehicles they need to manufacture. This allows them to save quite a bit of money, both at the production end, and the dealerships themselves.

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About the same number of cars will be continue to be sold, but the amount of money going to each car dealerships will increase. The good it does is to help the remaining dealerships stay in business.

merry1 in a Texican COAT

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