For decades, the relationship between car dealers and manufacturers has had its challenges. From the perception of the dealer, the manufacturer continually attempts to “cost-shift,” lowering their expenses and increasing the dealers’ expenses. Over the years, many states have passed franchise protection laws in order to balance the unequal bargaining power that exists […]
Forty states now have legislation requiring manufacturers to reimburse dealers at retail rates for both parts and labor performed in warranty service. Some laws are stronger than others, and no two states have identical statutes. None of these laws are self-effectuating, meaning the law itself does not entitle the dealer to retail reimbursement; you must […]
As a dealer, you should ask yourself three basic questions in regards to your annual warranty rate increase: 1. Do I have my annual warranty rate anniversary date recorded, and do I have a process in place to make adjustments prior to it in case I don’t have adequate data to support an increase? 2. […]
Opening Remarks To begin with, the opening remarks of the chairwoman of the Federal Trade Commission, Edith Ramirez, set the tone for the sessions to follow by discussing the FTC’s involvement in the earliest days of the domestic auto industry. She discussed a major report of more than 1,000 pages produced for Congress in 1939 […]
The factory-dealer relationship is anything but a level playing field, and unfortunately the behaviors of some manufacturers have necessitated state laws to protect dealers. These franchise laws cover a myriad of issues, but one that is critical to your bottom line exists in 40 states, with more on the way. For years, most dealers have […]
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