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Automotive Industry Franchises

Seyfarth Shaw LLP

Recent Illinois Board Decision Reinforces Need for Vigilance on Dealer Agreement Renewals - Seyfarth's Future of Automotive Series

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A recent decision of the Illinois Motor Vehicle Board (the “Board”) reinforces why auto manufacturers need to ensure they have a proactive process in place to address the timely renewal of expiring dealer agreements. Based on...more

Fox Rothschild LLP

Truck Dealers: The Forgotten Child - Why Encroachment Protection Is Not a One-Size-Fits-All Proposition

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Franchise laws, indeed, the entire automotive industry, are focused primarily on the passenger motor vehicle market – and nowhere is this more obvious than in the area of encroachment protection. The commercial truck...more

Seyfarth Shaw LLP

Ford Eases EV Requirements After Latest Litigation Setback

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In the fall of 2022, Ford introduced an aggressive “Model e Program,” requiring its dealers to invest roughly $500,000-$1 million to install publicly accessible electric vehicle (EV) charging stations, invest in employee...more

Seyfarth Shaw LLP

New York Court Stays Ford’s Implementation of EV Sales Requirements Pending Resolution of Dealers’ Challenge

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On September 20, 2023, a New York state court ordered a stay preventing Ford from implementing its new electric vehicle (“EV”) certification programs for dealers pending the outcome of an action challenging the programs as an...more

Seyfarth Shaw LLP

Court Rules that Rivian and Lucid May Sell Vehicles Direct to Consumers in Illinois

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On December 19, 2022, an Illinois state trial court issued an order dismissing, with prejudice, a complaint filed by the Illinois Automobile Dealers Association (“IADA”) and numerous individual franchised dealers against...more

Miller & Martin PLLC

Georgia Legislature Considers Expanded Franchise Exception for EV Makers

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The Georgia legislature is considering a new exemption to the state’s longstanding franchise laws against vehicle manufacturers selling directly to consumers. Senate Bill 398 is currently before the Georgia State Senate. If...more

Morgan Lewis

Changing the Rules on How Cars Are Sold

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Car buying has evolved since the creation of state automotive franchise and dealer laws. The internet has brought virtually every consumer buying experience online, yet new vehicle sales are still largely a brick-and-mortar...more

Bressler, Amery & Ross, P.C.

Recent Decisions in New York and Ohio Signal that Courts and Agencies are Diligently Enforcing Laws that Protect Franchised Auto...

Two recent decisions in New York and Ohio, respectively, should – but likely will not – motivate auto manufacturers to abandon their reliance upon provably undependable “metrics” to evaluate dealers’ retail sales performance....more

Robins Kaplan LLP

Financial Daily Dose 1.29.2020 | Top Story: Chipotle fined over thousands of child labor law violations in Massachusetts

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Massachusetts has fined Chipotle $1.4 million as part of a settlement with the restaurant chain over accusations that “it routinely violated [state] labor laws, with authorities estimating more than 13,000 violations from...more

Robins Kaplan LLP

Financial Daily Dose 1.13.2020 | Top Story: Labor Dept. Issues Stricter Joint Employer Test in New Rules

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Sunday’s release of a long-awaited Labor Department final rule on joint employment spells trouble for workers hoping to “sue large companies for wrongdoing by contractors or franchisees.” The rule reverses Obama-era policies...more

ArentFox Schiff

Warranty Reimbursement Rates Under the New California Law

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Actually, even dealers who haven’t questioned the value of those memberships should pay close attention to this article. Major kudos are in order for CNCDA, OCADA and the other metro dealer associations for convincing the...more

Robins Kaplan LLP

Financial Daily Dose 10.2.2019 | Top Story: Johnson & Johnson Pays Out $20 Million to Avoid First Opioid Trial

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Johnson & Johnson doled out $20 million to two Ohio counties rather than go through with its first federal opioid-related trial. The money is rather small potatoes for J&J, but it marks the “first time . . . the world’s...more

Seyfarth Shaw LLP

2019 NAMVBC Fall Workshop Features Panels on Internet Vehicle Sales and Dealer License Fraud

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The National Association of Motor Vehicle Boards and Commissions (“NAMVBC”) held its annual fall workshop from September 19-21, 2019 in Sacramento, California. The three day workshop featured panel discussions about internet...more

Foley & Lardner LLP

Vehicle Subscription Plans Gaining More Attention, Scrutiny

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Consumers are familiar with the two traditional options for vehicle ownership—buy a car, or lease a car. However, a new option has been emerging in recent years: vehicle subscriptions. A vehicle subscription includes a set...more

Fox Rothschild LLP

Tesla “Franchisee” Thwarted in Utah

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Tesla, the electric vehicle automaker, recently lost a round in the Supreme Court of Utah. Tesla set up a wholly-owned subsidiary called “Tesla UT” that was to hold a license to sell Tesla’s cars to the public. The Utah...more

Lewitt Hackman

FRANCHISOR 101: Not Your Neighborhood Tesla Dealer

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Among the many differences between Tesla and traditional automakers, Tesla does not sell or service its electric cars through franchised dealers; it sells direct to consumers. Recent legal challenges to Tesla's...more

Foley & Lardner LLP

New DOL Joint Employment Standards Affect Auto Employers

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Joint employer relationships are commonplace in the automotive industry. From auto makers that contract with other companies for parts to auto dealers that utilize franchise arrangements, the auto industry is reliant on joint...more

Littler

Appeals Court Upholds Board Finding of Failure to Bargain over Job Relocation

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The D.C. Circuit recently enforced the National Labor Relations Board’s January 3, 2012 order holding that an automotive dealership had violated Sections 8(a)(5) and 8(a)(1) of the National Labor Relations Act by failing to...more

Constangy, Brooks, Smith & Prophete, LLP

Executive Labor Summary - November/December 2014

NEWS & ANALYSIS - NLRB changes longstanding rule for deferral to arbitration awards - The National Labor Relations Board has had a busy December with four major new developments. We have already reported on two of the...more

Lewitt Hackman

Comparing Franchise Relationships and Beer Distribution Relationships

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Beer distribution laws differ from traditional franchise laws in many ways, but they do share some commonalities. As a matter of fact, many states now regulate the relationship between those who brew or import beer into a...more

McNees Wallace & Nurick LLC

Warranty Retail Rate Reimbursement:To Surcharge or Not to Surcharge, That is the Question

Pennsylvania’s dealer franchise protection law, the Board of Vehicles Act (Act), was recently amended effective December 31, 2013. Through the diligent efforts of PAA, the amendments to the Act include...more

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