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AB 2107, California’s New Motor Vehicle Franchise Bill, Heads to Its First Committee Hearing

Contact: Jenny Dudikoff
916-441-2599

SACRAMENTO, CA – AB 2107, the California New Car Dealers Association’s priority bill for the 2018 legislative session, is making its way to its first committee hearing in the California State Legislature. To be heard in the Assembly Transportation Committee Monday, April 23rd, AB 2107 seeks to strengthen and protect California’s franchise system and California new car dealers and new car buyers.

AB 2107, authored by Assemblymember Eloise Reyes (D-San Bernardino), contains a number of provisions designed to improve California’s franchise laws by:

  1. Strengthening California’s franchise laws
  2. Addressing inappropriate treatment of dealers by manufacturers
  3. Enforcing manufacturer accountability for unlawful actions against dealers
  4. Conforming California franchise laws to recent actions in other states

“California’s new motor vehicle franchise system was established to protect dealers and their customers from onerous and continuous manufacturer requirements. Restoring balance to the relationship between manufacturers and dealers is the chief purpose of AB 2107.  This bill will also better enable new car dealers to provide the vehicles consumers demand, while improving the resolution of warranty, recall and repair issues,” said California New Car Dealers Association Chairperson, Taz Harvey of Dublin Mazda. “CNCDA and our members statewide are eager to work together with the author and stakeholders on this bill and we are committed to achieving a stronger, more equitable new motor vehicle franchise system.”

From time to time the Legislature evaluates the rules and regulations that effect the new motor vehicle market in our state. AB 2107 ensures that California has the strongest laws in place, and that those laws are implemented as intended by the Legislature.

For CNCDA background on the bill, please visit our AB 2107 Factsheet. For full bill text, please click here.

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About CNCDA
The California New Car Dealers Association is the country’s largest state association of franchised new car and truck dealers representing nearly 1,200 dealer members.  Last year California’s franchised new car dealers sold more than 2 million new and used cars and trucks.

CNCDA is working to continuously provide our members with the most up to date information on the coronavirus as it pertains to dealerships.

Visit our Dealership Coronavirus Resources webpage for more information.

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