Car manufacturers of expensive models, such as Mercedes or Audi, insist on wrap covering each individual vehicle with protective sheathing for the duration of the journey from the factory to the dealership. Such manufactures are creating which kind of channel utility?

Answer: Form utility.

Explanation:

The manufacturers of the expensive car brands are trying to ensure that the cars have a high form utility when the consumers want to purchase them from dealers. The form utility is the utility a consumer derives from a product when it has been converted from raw materials to finished product.