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Governor Newsom Signs California New Motor Vehicle Franchise Bill

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – The California New Car Dealers Association, representing nearly 1,200 new car dealers statewide, has achieved a huge victory in its aggressive efforts to strengthen and update California’s new motor vehicle franchise laws.

Governor Gavin Newsom has signed AB 179 into law. Overcoming significant manufacturer opposition, AB 179 unanimously passed the California State Legislature without a single no vote and now has the support of the Governor. AB 179, authored by Assemblymember Eloise Reyes (D-San Bernardino), 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

“This is a significant step forward in our commitment to a stronger and more equitable new motor vehicle franchise system for California new car dealers. With AB 179 taking effect January 1, 2020 this is a huge victory for all Californians, local businesses and consumers alike. This bill brings California’s new motor vehicle franchise laws 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, California was overdue for significant improvements in the laws that will continue to protect dealers, their businesses and their patrons. We are pleased and encouraged that Governor Newsom agrees and supports our approach to improvements in California’s franchise laws.”  

CNCDA is appreciative of the work achieved by the author and all stakeholders on AB 179 and will remain committed to a stronger, more protected new motor vehicle franchise system.  

For more information on the provisions in AB 179, please click here.

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About CNCDA

For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair. Our members sold more than 2 million cars and trucks in 2018 and employ more than 140,000 Californians, significantly contributing to our state’s economy.  As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy. For more information, visit www.cncda.org.

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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