If an automaker shuts down one of its New Hampshire dealerships, it is currently required by law to buy back inventory and parts. Fair enough, right? Well, the AP (via Forbes) reports that New Hampshire’s senate is considering a “dealer bill of rights” that would force OEMs to buy back stock and parts even if the local dealership goes under voluntarily. Local lobbyists say 14 dealers failed in 2008, and many weren’t provided fair compensation by their respective manufacturers. The Alliance of Auto Manufacturers claims to support buybacks for voluntary closures in principle, but says the bill’s language leaves it open to abuse. The AAM also charges that the bill would require manufacturers to pay for renovations done 15 years prior to closing, a protection that exceeds those of any other state. The bill also prohibits franchise agreements which limit the dealer’s legal recourse, gives the manufacturer the option to buy the dealership, inequally distribute or price vehicles between the state’s co-franchisees, or coerce the dealer to buy a certain vehicle model in order to gain access to another model. Numerous other protections for dealers fill out the comprehensive bill, which dealers and legislators say is necessary in the curent auto market.
If this goes through for cars, other industries will demand it as well. I guess the knuckleheads in government didn’t consider that possibility
Lets stuff those in favor of this on a 727 on the tarmac for 7 hours and see if maybe a Travelers Bill of Rights can be passed.
If I were a legislator, I’d cut through the crap and go all the way. Introduce a bill that would mandate manufacturers to pay “job’s bank” benefits for 2 years to every dealership employee from closed franchises.
I mean, if your gonna be a whore, be a whore.
given the oppositional course chosen by the manufacturer, I whole heartily agree with this legislation.
This is state legislating at its “finest”. You can judge how much in-the-pocket-to-the-dealers the already totally corrupt legislators are by the amount of friendliness contained in proposals such as this one.
State legislatures are different only in that different industries own them. Where I live, that would be the “outdoor advertising” people, ie., billboards.
Just shows how powerful the dealer lobby is, which is funny since everyone seems to hate car dealers.
This “legislating” is an example of why bankruptcy for the automakers needs to be used.
Just shows how powerful the dealer lobby is, which is funny since everyone seems to hate car dealers.
Car dealers are local; manufacturers generally aren’t. Local wins. Most drivers will be satisfied to blame the manufacturers, or see this as a way to steer some bailout bucks towards their state.
johnthacker has it exactly right. I don’t think there are any car plants in New Hampshire, but there are car dealers.
This is kind of why I’m a Federalist-laws like this are good for the state in question but bad for the country as a whole.
live free or die!