Motor vehicle industry changes advanced

Senators advanced a bill March 30 dealing with manufacturers and dealers of motor vehicles.

Under LB477, introduced by Valentine Sen. Deb Fischer, a motor vehicle manufacturer could not require new motor vehicle dealers in the state to:
• retain parts or accessories that were not obtained through a specific order and not sold within 12 months;
• maintain exclusive sales facilities or display space, personnel, service, parts or administrative facilities for a line-make, unless it is justified by reasonable business considerations;
• disclose consumer information that consumers have opted out of; or
• enter into any agreement with a manufacturer, factory branch, distributor, distributor branch or one of its affiliates that gives site control of the dealer premise.

A manufacturer would be required to compensate a new dealer for warranty and recall obligations related to repair, service and installation. A dealer’s claim for warranty compensation may be denied only if:
• it is based on a non warranty repair;
• the dealer lacks documentation for the claim; or
• the dealer fails to comply with specific substantive evidence that the claim is intentionally
false, fraudulent or misrepresented.

The bill results from agreements between motor vehicle manufacturers and dealers, Fischer said, and is intended to increase protections between them.

A Transportation and Telecommunications Committee amendment, adopted 34-0, clarified agreements in the bill.

LB479 advanced from general file on a 32-0 vote.