Global Automakers

Global Automakers Opposes Minnesota Franchise Bill

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February 28, 2017

Global Automakers submitted an opposition letter on Minnesota HF 740 which aims to repeal the current warranty reimbursement statute and replace it with a complicated and burdensome procedure that would result in a windfall to certain dealers at the expense of Minnesota consumers. The legislation would also prohibit automobile manufacturers from recovering compliance costs by increasing vehicle prices to dealers. Global Automakers stated that manufacturers have the right to determine the price of products based on evaluating all costs associated with the production, sale, and servicing of its vehicles. In addition, HF 740 would require manufacturers to provide confidential information to competing dealers, as well as impose additional requirements on manufacturers and institute a complicated procedure to determine whether the assignment or change to a dealer¹s sales effectiveness area is lawful. Global Automakers believes these changes will not benefit Minnesota consumers and only serve to further insulate dealers from their responsibilities under the franchise agreements they willingly signed.

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