ocean,” Holter explains. “And that, of course, meant that real estate could be developed there.” The growing film industry prospered as well, using automobiles to scout and shoot in varied locations — urban, suburban, rural, mountainous, seaside, riverside, desert and ranch — all within easy reach of the city. The arrival of the car meant that filmmakers and actors no longer needed to carry their equipment or wear their costumes on the train or streetcars. “Hollywood made the car, and the car made Hollywood,” Holter says. But, the main focus of the book is on how L.A. became the epicenter of the automotive market, and the local dealer was crucial. Holter attributes that to one main reason. “It was these really local entrepreneurs, bankers and car dealers, local risk takers, who provided the critical link between the carmakers and buyers,” he says. “It was the dealers who found ways, through trial and error, to put people behind the wheel, and eventually convinced them that the car was a necessity and not just a luxury.” These early dealers and many of their creative innovations are still in practice today. Primary among these were the independent car dealership franchise, the used-car market and dealer-sponsored service centers. But conceivably, the most profound idea was that of hard goods financing: making a large purchase on credit. Prior to the automobile, the concept of an accessible and increasingly necessary category of commercial goods — one within reach of the common person, but which couldn’t readily be purchased outright — didn’t exist. “Neither the factories nor the banks or the finance companies offered retail credit in these early years. So, the dealers, because they wanted to sell cars on their own, started to experiment with paying on running credit by accepting down payments and promissory notes,” Holter says. Even more fascinating is the pattern Holter uncovers between retail establishments and the early broadcast industry. L.A. dealers were among the first owners of local radio stations such as KFI and KNX. “These stations were launched primarily as a way of selling cars,” Holter says. “These dealers became wealthy so quickly that they were seeking the next groundbreaking technology, looking for the next investment,” Holter says. “That’s the type of entrepreneurs they were.” This book holds a large amount of contemporary importance, as today, consumers and automakers debate the validity of the franchise dealer system. “I think that some of the same factors that caused direct sales approaches to fail more than a century ago may still prevent high volume manufacturers from really being able to go totally direct,” he says. According to Holter, these include personal contact in sales and negotiations, as well as plans for delivery and repairs. “Things like that,” he says, “I don’t think are handled well by the internet.” One might add that the unfair, Darryl Holter, GLANCDA Director 21
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