In an unexpected decision, California Gov. Jerry Brown vetoed a dealer protection bill unanimously passed by the California State Legislature. The sticking point was a 'complex formula' for determining dealer reimbursement on warranty and recall work.
While the bill further strengthens dealer protections and updates others, several protections aimed at future services and opportunities for automakers to serve customers directly were stripped out of the bill prior to last Thursday’s unanimous vote by the California Legislature.
In an Aug. 13 ruling, the California New Motor Vehicle Board sided with Folsom Chevrolet in a case that calls into question the way General Motors and other automakers measure and enforce sales expectations.
New legislation aimed at strengthening dealer protections under California’s franchise laws will have its first committee hearing on Monday. One of its provisions specifically addresses the disclosure policy General Motors issued last summer regarding the sale of non-GM service contracts.
The owners of Dependable Dodge scored a judicial victory that further erodes manufacturers’ rights to ax franchises that don’t meet their sales quotas.
The owners of Dependable Dodge scored a judicial victory that further erodes manufacturers’ rights to ax franchises that don’t meet their sales quotas.
A new economic analysis shows that state franchise laws, which have come under attack by regulators like the Federal Trade Commission, stimulate competition that results in lower retail prices for consumers.
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