Final answer:
Automotive companies may replace independent sales branches with manufacturer sales branches to exert more control over sales and reduce costs, which can significantly impact local economies.
Step-by-step explanation:
When large automotive companies face challenges such as decreased sales and lower manufacturing outputs, they occasionally need to reassess and realign their business models. This realignment can lead to the replacement of independent sales branches, such as individual dealerships, with company-owned manufacturer sales branches. By doing so, the companies aim to exert more direct control over the sales process, optimize their operations, and potentially reduce costs. However, this transition can have significant impacts on local economies, particularly when it involves severing ties with numerous dealerships. These dealerships are often significant local employers and their closure or downsizing can lead to job losses and other economic hardships within the community.