Skip to Content

Help CNCDA Defend Your Franchise

Join the fight to protect California franchise law and your dealership.

How We’ve Been Fighting For You

October 2023
AB 473 signed into law. This CNCDA-sponsored law bars manufacturers from competing with dealers through affiliate brands.
October 2024

VW/Scout publicly announces plans for direct-to-consumer sales.

January 2025

Sony/Honda announces Afeela direct-to-consumer plans.

April 2025

CNCDA filed lawsuit against VW and Scout in San Diego Superior Court (later moved to federal court.)

August 2025

CNCDA files a lawsuit against Honda/Afeela in LA County Superior Court; amends VW/Scout complaint.

September-November 2025

VW/Scout files motion to dismiss. Honda/Afeela requests dismissal of CNCDA’s lawsuit.

March 2026

Court rules CNCDA’s case against Honda/Afeela may proceed. Honda then announces suspension of Afeela project. Court denies VW/Scout’s motion to dismiss. VW’s German parent company is dismissed from the suit.

April 2026

14 VW dealers file protests against VW/Scout at New Motor Vehicle Board; CNCDA funds these protests.

May/June 2026

Honda/Afeela claims case is “moot.” CNCDA demands a binding no-direct-sales commitment. VW/Scout lawsuit discovery begins.

California franchise law is under attack as manufacturers continue to push for direct-to-consumer sales, threatening your franchised dealership.

Two lawsuits are underway, and while CNCDA has secured early wins, well-funded opponents are expected to escalate the fight – and we anticipate more manufacturers will do the same.

For the first time in 25 years, CNCDA is calling on YOU, the dealers, to help us defend your business and the franchise system.


We encourage you to donate $5 per car sold by your dealership(s) in 2025, but please give any amount you’re comfortable with.

Every donation is vital in helping us win this fight for you.

Donate now by clicking the button above or make a contribution by check, payable to:
California New Car Dealers Association
1517 L Street
Sacramento, CA 95814
(916) 441-2599
Check Memo Line – Legal Fund


For over 105 years, The Niello Company has served the greater Sacramento region, with 70 of those years acting as a steward of the Volkswagen brand. We invest in our people, our facilities, and our customers to ensure every experience reflects the quality Volkswagen represents. Our customers deserve access to the full range of vehicles Volkswagen offers, and Scout vehicles belong in our showroom. We expect the same integrity from our manufacturer that we deliver to our customers. Rick Niello The Niello Company
As a member of the Volkswagen Dealer Council, I have spent years working with VW in good faith to grow this brand in California. Filing a protest was not a decision any of us made lightly. But VW has left us no choice. They are competing against the very dealers who built their business here. Miles Brandon Capistrano Volkswagen

Contributions to this fund support CNCDA’s legal defense efforts and are not considered political donations, therefore they are not subject to political reporting requirements.
Contributions are also not tax deductible for income tax purposes.

Back to top