Motor Vehicle Sales by Manufacturers' Affiliates
The bill amends the definition of a "manufacturer" of new motor vehicles to include an affiliate of a manufacturer and defines the term "affiliate".
The bill clarifies that the provision in current law prohibiting a manufacturer from owning, operating, or controlling a motor vehicle dealer or used motor vehicle dealer in the state also includes competing against a motor vehicle dealer or used motor vehicle dealer. Further, the bill extends the prohibition to include motor vehicle dealer-operated service centers in the state.
Current law does not prohibit ownership, operation, or control of one or more motor vehicle dealers by a manufacturer if the manufacturer manufactures only electric vehicles and has no franchised dealers of the same line-make in the state. Under the bill, the ownership, operation, or control of one or more motor vehicle dealers by a manufacturer is not prohibited if the manufacturer manufactures any vehicle and has never had franchised dealers of any line-make in the state.
(Note: This summary applies to this bill as introduced.)