ICLE Cited in Driving on Auto Franchise Laws
An article published in Driving examines the economic inefficiencies of the traditional automobile franchise system. The column references research from ICLE’s Kristian Stout and Subi Ramakrishnan concerning state laws that compel manufacturers to sell vehicles through franchised dealerships. Read the full piece here.
A recent survey released in the U.S. by the International Center for Law and Economics (ICLE) raised a few hackles by claiming, “State laws requiring automobile manufacturers to sell through franchised dealers add an estimated $3,934 to $4,992 to the price of a new vehicle, functioning as a ‘middleman tax’ that raises costs and limits innovation.” These are American numbers highlighting an American system, but Canada’s dealership model functions in much the same way.