Automakers are under enormous pressure to reduce overhead as Chinese competitors operate faster and at lower cost.

Volkswagen says its overhead remains more than 30% above comparable competitors, and discussions around its restructuring have included potentially tens of thousands of additional job reductions.

Cost reduction may be necessary. But dealers interact with the consequences.

Field teams, warranty support, regional managers, training, marketing, incentive administration, technical support and allocation all require people. Removing corporate layers can make an OEM faster, but cutting too deeply can simply transfer work and frustration to the dealer network.

What functions should automakers protect even during major restructuring?

Dealers frequently complain about OEM bureaucracy, but they also complain when nobody knowledgeable is available to solve a problem.

Where is the balance between a lean manufacturer and an understaffed one?