Why AB 2107 Supports Local Businesses and Customers, Not Big Out-of-State Manufacturers
May 24, 2018
In response to an opinion article criticizing Assembly Bill 2107 (“New car dealers push self-serving bill,” Viewpoints, May 23), California’s new car dealers have a very different story to tell.
In fact, AB 2107 supports local businesses and consumers, and does not harm them.
California’s new motor vehicle franchise system was established to protect dealers and their customers from onerous requirements by automakers. The clear and balanced objective of AB 2107 is to address unfair behavior and level the playing field between local independently-owned dealerships and multinational vehicle manufacturers.
All 50 states have similar laws. With consistent abuses against franchised new car dealers, California’s laws must be strengthened to protect local businesses and their patrons.
Opponents claim that AB 2107 limits consumer choice and drives up cost. The opposite is true. Burdensome manufacturer requirements, coupled with anti-competitive practices, put California new car dealers under unfair business conditions.
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