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California New Motor Vehicle Franchise Bill Unanimously Approved by State Legislature

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – The California New Car Dealers Association, representing more than 1,150 new car dealers statewide, has achieved a major milestone in its aggressive efforts to strengthen and update California’s new motor vehicle franchise laws.

In the final hours of the 2018 legislative session, AB 2107, authored by Assemblymember Eloise Reyes (D-San Bernardino), received bipartisan unanimous support, with a final vote of 77 – 0, closing out the session without a single no vote.  AB 2107 contains a number of provisions that will improve California’s franchise laws, while continuing to protect the California franchise system, California new car buyers and local businesses. Key components of the bill include:

  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

“Thanks to the stewardship of Assemblymember Reyes, the passage of AB 2107 is a huge victory for all Californians, local businesses and consumers alike. If signed by the Governor, the passage of this bill brings California’s new motor vehicle franchise laws further into the 21st century by establishing a level playing field between local independently-owned dealerships and multinational vehicle manufacturers,” said California New Car Dealers Association President, Brian Maas. “Franchise laws exist to govern the relationship between dealers and manufacturers, and California was overdue for significant improvements in the laws that will continue to protect dealers, their businesses and their customers. We are pleased and encouraged that the California State Legislature unanimously agrees and supports our approach to improvements in California’s franchise laws.”

CNCDA greatly appreciates the tireless work by the author, her staff and all stakeholders on AB 2107.  We remain committed to a stronger new motor vehicle franchise system as the best way to sell and service vehicles in California.

The final stop for AB 2107 is Governor Brown’s desk, where he has until September 30th to sign it into law.

For more information on the provisions in AB 2107, 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 2.5 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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