ALERT: SUPPORT AB 473- CNCDA’s 2023 Franchise Bill
This year, CNCDA has introduced AB 473 to the California State Legislature. It is a comprehensive bill that will strengthen and update California’s franchise laws to create a stronger and more equitable vehicle franchise system for our members.
Assemblymember Cecilia Aguiar-Curry, who represents California’s 4th Assembly district, is the author of AB 473 and is eager to support CNCDA and its members in this effort. AB 473 contains multiple provisions designed to improve California’s franchise laws, with key components including:
Protect the underlying intent of the vehicle franchise system by precluding manufacturers from launching a new brand name of vehicles that would compete directly with their franchised dealer network.
Incorporate a level of fairness into manufacturer-imposed DC fast charging programs by – amongst other requirements – prohibiting the manufacturer from shifting the entire cost of installing and maintaining public-facing DC fast chargers on their dealers.
Restricts the ability of manufacturers to offer post-sale subscriptions that enable features that are physically built into the vehicle.
While CNCDA is excited to pursue this effort, it will be a heavy lift. Support from each and every dealer across the state is going to be necessary to get this bill across the finish line in 2023.
If you have any questions regarding AB 473 or want to help, please contact Kenton Stanhope, CNCDA’s Director of Government Affairs, at kstanhope@cncda.org.
Let’s Talk Time and How AB 473 Corrects Warranty Reimbursement:
ALERT: SB 986 (Umberg) – STRONG OPPOSE
CATALYTIC CONVERTER LEGISLATION WILL INCREASE CONSUMER PRICES WITHOUT SOLVING THEFT PROBLEM
The California New Car Dealers Association (CNCDA), the Alliance for Automotive Innovation (AAI) and the National Auto Actions Association (NAAA) strongly oppose SB 986 (Umberg), which seeks to impose an unworkable new obligation on auto dealerships and auto auctions by requiring them to permanently mark the vehicle identification number (VIN) on the catalytic converters of virtually every new and used vehicle sold in the State of California. While we respect the intent of the author, SB 986 is unworkable and will ultimately result in increased costs for consumers while doing nothing to address rampant catalytic converter theft in California.
Massive new costs would increase the cost of new and used vehicles. California’s new car dealers sell approximately 3.5 million new and used vehicles per year. SB 986 would require dealers to etch the vehicle identification number (VIN) on the catalytic converter on each vehicle before selling it. This onerous new mandate would result in over 3.5 million hours of required labor by vehicle technicians annually. Unfortunately, the significant new cost burden on California’s new car dealers, created by SB 986 would be felt directly by consumers across the state as many are already struggling with high costs and inflation.
SB 986 is a patchwork measure that will not solve theft issues. SB 986 is NOT a preventative measure, but rather seeks to address a prosecutorial gap in current law by putting this obligation on the backs of California’s dealerships, vehicle sellers and ultimately consumers. Catalytic converter theft victimizes all Californians. A comprehensive, meaningful deterrent is necessary, but SB 986 is a scattershot approach and does not provide any guarantee there will be a decrease in catalytic converter theft.
CNCDA, AAI and NAAA are committed to playing a critical role in curbing catalytic converter theft. However, SB 986 is not a sound solution. For these reasons, we respectfully ask you to OPPOSE SB 986. Please do not hesitate to contact me if you would like to discuss our position further. #RejectSB986 #CALeg
Sincerely,
Alisa Reinhardt, CNCDA Director of Government Affairs Alliance for Automotive Innovation National Auto Auctions Association
