Fire the Car Dealers?

I am really confused about why cancellation of a car dealer's contract is a good idea. Under normal circumstances it should be considered an advantage to have more people selling your product. If I understood an interview I heard with a dealer whose franchise was revoked, the dealer has to ante up his own money buy the cars from the company, and to pay for all the expenses involved in running his business. If this is the case, it would be sheer lunacy to close them down. Since I don't know the facts, maybe I should just let it go. I'm just trying to apply some common sense to the problem. Have you heard about unintended consequences? This situation looks like it will have a bunch of them. The first that comes to my mind is that most dealerships employ 40 - 50 workers. If the dealerships closed down, these laid-off employees would add to the ever expanding total of the unemployed. Bailing out the car companies was supposed to save or create jobs. Many of the dealers that lost their franchise were actually quite successful and had a really good operation. These guys probably won't just roll over and assume a fetal position. They have the showroom, the lot, the staff and the financing. All that is missing is a line of cars to sell. So, they will be looking at lines offered by the Japanese or the Koreans or the Germans. And don't forget that India and China are about to be big players in the car manufacturing game. (China has had a plug-in electric car for over two years now, three years ahead of the Volt from GM.) The way I see it, this move will mean a larger share of the market for the foreign manufacturers, at the expense of our domestic brands. I don't think that is a good thing. But behind it all, it seems to me that something is going on behind the scenes that is not supposed to see the light of day. Obama's "machine" is pushing really hard to get this over in an unrealistic short time, and I always say that when someone tells you to rush, that is when you need to slow down and study. This administration is not beyond being untruthful, misleading, heavy handed or downright ruthless.