News & Analysis as of

Car Dealerships Manufacturers

Seyfarth Shaw LLP

Texas Motor Vehicle Regulation Advisory Committee Rejects Attempt by Texas Dealer Association to Overhaul Vehicle Allocation...

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On June 25, 2024, the Motor Vehicle Regulation Advisory Committee of the Texas Department of Motor Vehicles (the “Advisory Committee”) rejected a rulemaking petition advanced by the Texas Automobile Dealers Association...more

Seyfarth Shaw LLP

Federal Court Dismisses OEM Challenge to Illinois Warranty Labor Time Guide Amendment

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Last week, the Illinois federal court in Volkswagen Group of America v. Illinois Secretary of State, 2024 WL 2020036 (N.D. Ill. May 6, 2024) granted a motion to dismiss a challenge brought by Volkswagen (“VW”) against a 2022...more

McDermott Will & Emery

Mobility@McDermott: Monthly Update (02/2024)

1. Ruling of European Court of Justice on jurisdiction in product liability case- Another interesting judgment of the ECJ on jurisdiction in cross-border disputes was handed down on 22 February 2024 in a product liability...more

Seyfarth Shaw LLP

FCA Continues Winning Streak For OEMs On Claims For “Unfair Profit” In Destination Charges

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On Friday, December 22, 2023, FCA US LLC, the manufacturer of Chrysler, Jeep, Dodge, Ram vehicles, among others, scored the latest in a series of victories for automakers over claims by consumers that “destination charges”...more

Bennett Jones LLP

B.C. Accelerating Zero Emission Vehicle Sales Mandate

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Passed on May 30, 2019, the British Columbia Zero-Emission Vehicles Act requires automakers, and indirectly their dealers, to sell or lease an escalating percentage of new zero emission vehicles (ZEVs) vs. new internal...more

Seyfarth Shaw LLP

Massachusetts Judge Says Prepaid Vehicle Maintenance Plans Not Subject to State Dealer Statute

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A Massachusetts federal court judge has ruled that an OEM-branded prepaid vehicle maintenance plan sold and administered by a third-party to auto dealers is not subject to the Massachusetts Motor Vehicle Dealer Act and...more

Lathrop GPM

California Court of Appeals Denies Manufacturer’s Motion to Compel Arbitration Under Sales Contract to Which It Was Not a Party

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The California Court of Appeals for the Second District, creating a split of authority among California’s appellate courts, held that Ford Motor Co. did not have the right to enforce an arbitration provision in a sales...more

Seyfarth Shaw LLP

Recent Changes to Virginia Dealer Act Target Manufacturer Websites and Digital Communications

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Cognizant of the online success new entrants have enjoyed with web-based, direct sale models, traditional auto manufacturers have expanded the digital presence of their brands through enhanced website functionality that...more

Lathrop GPM

Tennessee Federal Court Denies Franchisor’s Motion to Dismiss Claims of Bad Faith in Denying Relocation

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A federal court in Tennessee denied a manufacturer’s motion to dismiss claims that it acted in bad faith and constructively terminated a dealership when it denied the dealer’s proposed relocation sites. Hyundai Subaru of...more

Seyfarth Shaw LLP

Ninth Circuit Affirms Dismissal Of Lawsuit Challenging OEM “Destination Charges” As Deceptive

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The Ninth Circuit recently affirmed the dismissal of a putative consumer class action challenging a manufacturer’s “destination charge” as an undisclosed and deceptive “vessel for profit” in violation of California and New...more

King & Spalding

Ninth Circuit Rejects Vehicle Manufacturer’s Attempt to Enforce Arbitration Clause in Dealership Purchase Agreement

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On January 12, 2022, the Ninth Circuit held that BMW North America, LLC (“BMW”) could not enforce an arbitration clause in a dealership purchase agreement because, under California law, BMW (1) was not a third-party...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

Womble Bond Dickinson

The Sandbox Dilemma: Massachusetts Votes

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Who owns the stuff you buy? This used to seem so easy. Of course, you own the house, car, refrigerator, books, watch, shoes, pants, and everything else you bought – we always thought so. But not anymore. The companies that...more

Foley & Lardner LLP

Dealing with Dealers after Covid-19: Product Allocation

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The COVID-19 pandemic presents a number of challenges for manufacturers and suppliers managing dealership sales and service networks. Business and supply chain disruptions are depressing product output, requiring changes to...more

Fisher Phillips

How To Make Manufacturer Spiffs Work For You: Department Of Labor Provides New Guidance

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Last month, the U.S. Department of Labor (DOL) gave car dealers welcome news. In an opinion letter interpreting the federal Fair Labor Standards Act (FLSA), the DOL found that incentive payments paid directly by the...more

Seyfarth Shaw LLP

Tesla Scores Another Victory in Virginia and Deals a Blow to Representational Standing

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Overshadowed by the outbreak of the COVID-19 pandemic, Tesla in early March quietly racked up another win that will allow it to continue the direct sale of new motor vehicles to consumers in Virginia. On March 3, 2020, the...more

Seyfarth Shaw LLP

California DMV Finds “Care by Volvo” Subscription Service Violates State Law

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The California Department of Motor Vehicles (“DMV”) recently disclosed the results of its investigation of the “Care by Volvo” car subscription service (“CbV”) that was challenged as unlawful competition by the California New...more

Seyfarth Shaw LLP

Third Circuit Ruling Paves Way for Dealer Associations to Challenge Incentives Programs

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State dealer statutes commonly regulate the incentive programs manufacturers use to encourage dealers to improve performance or upgrade their dealership facilities to meet brand standards.  Individual dealers have challenged...more

Seyfarth Shaw LLP

Colorado Adopts Two-Tier System For Direct Sale Of Electric Vehicles By Manufacturers

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On March 23, 2020, Colorado Governor Jared Polis signed into law S.B. 20-167, which amends that state’s dealer statute to allow some electric vehicle manufacturers to own, operate, and control motor vehicle dealerships in...more

Seyfarth Shaw LLP

Regulators Unveil Guidance On Best Practices for Internet Vehicle Sales

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Acknowledging that “[c]onsumers are clamoring for the opportunity to purchase the vehicles of their choice online because it expands the options available and enables them to save a considerable amount of time and possibly...more

Foley & Lardner LLP

Chicago Auto Show Highlights Crowd Pleasers and Aftermarket Stars

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The Chicago Auto Show is a welcome February distraction from winter and the sobering news surrounding coronavirus. Although CES is creeping into the auto show lineup, the Chicago Auto Show is now the first large auto show of...more

Seyfarth Shaw LLP

Tesla Is The Clear Winner in the Battle With Michigan

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Seyfarth's Future of Automotive Series - After three years of litigation, two appeals to the Sixth Circuit, and with a February 4, 2020 trial date looming, electric automobile manufacturer Tesla and the State of Michigan,...more

Snell & Wilmer

Service Contracts Are Not Express Warranties Under the Song-Beverly Consumer Warranty Act

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In Gavaldon v. DaimlerChrysler Corp. (2004) 32 Cal. 4th 1246, the California Supreme Court found that service contracts are not express warranties under the Song-Beverly Consumer Warranty Act and the Act did not otherwise...more

Seyfarth Shaw LLP

New York DMV Appeals Board Affirms Decision Rejecting Excessive Warranty Reimbursement Rate Demanded By Dealer

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The dealer statutes of many states require automobile manufacturers to reimburse dealers for parts and labor used in warranty repairs at the “average” retail rates charged by dealers for customer pay repairs. ...more

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