The Importance of Distribution for Early Car Companies

In 1903, the Metzger car was the second most popular car in the United States. Metzger, known for his difficulties in getting along with others, later founded the Everett Metzger Flanders company with two partners, with Studebaker as their distributor. The success of car dealerships was due to car companies providing dealers with a lucrative deal in exchange for distribution, as the companies themselves lacked the capital to both manufacture and sell cars.