Straight Talks: New players, new rules - IP disruption in the automobile industry
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
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
1. Leasing provider liable for behavior of car dealership employees in court case relating to vehicle purchase option after end of leasing agreement - When a customer decides to lease a vehicle offline, the first point of...more
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
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
The past few years have seen dramatic shifts for mergers and acquisitions involving automotive dealerships. It has been estimated that approximately 3% of dealerships undergo a change of ownership in an average year...more
By a 4-1 vote on June 23, 2022, the US Federal Trade Commission (FTC) issued a notice of proposed rulemaking that is squarely aimed at changing the way dealers interact with customers in the automotive financing process, with...more
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
Today is the first day to submit applications for a Small Business Administration loan under the new Paycheck Protection Program (PPP), one of the key components of the Coronavirus Aid, Relief, and. Economic Security (CARES)...more
Seyfarth Synopsis: As OEMs confront the impact of the COVID-19 pandemic on an already changing automotive industry, one significant issue will be the inevitable financial challenges that many dealers will face. Financially...more
Seyfarth Synopsis: At the beginning of 2020, industry pundits predicted only a moderate decline in auto sales for the year. Those “moderate decline” predictions took a sharp turn on Wednesday, with Morgan Stanley slashing its...more
The two leading Dealer Management System (“DMS”) providers in the United States—CDK Global, LLC (“CDK”) and The Reynolds & Reynolds Company (“Reynolds”)—have filed suit in federal court in Arizona seeking to block an...more
Although the number of total vehicle recall campaigns is likely to be down this year, lower volume recall campaigns are expected to continue to trend upwards, including those involving electrical system components. ...more
Coming off a record year in car sales, it’s expected that warranty and recall costs will continue to be on the rise. With that in mind, it’s vital that OEMs and suppliers have both their foreign and domestic contracts in...more