Virginia law aims to prevent direct sales
Among its provisions, automakers are prohibited from negotiating binding sales or lease terms with their customers, including online. Instead of selling to dealers and holding inventory, you retain ownership of your new vehicle until it is sold. Declare that the dealer is the carrier.
Virginia’s bill language also includes a provision prohibiting automakers from unilaterally changing franchise agreements without the consent of dealers.
“There is no line that says the agency model is outlawed in Virginia,” Hall said. car news“In America, everybody would say, ‘We don’t believe in the agency model. We’re not going to do the agency model.'”
National Dealer Franchise Act It already prevents incumbent automakers with franchise dealer networks from selling cars directly to consumers. But even if automakers profess no interest in turning dealers into distribution centers, Hall said the bill’s language is intended to prohibit attempts at certain practices that bypass dealers. .
“The reason for these various bullet points is so you don’t look, walk or talk like an agency model,” he said.
Hall said the law was not a direct response ford motor company The Model e program rolled out last year required dealers to invest up to $1.2 million in chargers and other equipment to sell the brand’s future EVs. end of last month Ford says it will change some regulations after backlash from dealers across the country For dealers who choose to invest less money.
“The idea is to keep the franchise system intact and send the message that auto dealers have the option and right to sell cars and that Ford won’t take them away,” Hall said. But it wasn’t a bill designed to go after Ford’s EVs directly.” [program]As I’ve told dealers, whether or not there is great customer demand for EVs, as long as OEMs are committed to EVs, you must be committed to EVs. ”
A Ford spokeswoman did not respond to a request for comment by press time.
Hall said he began working on legislation about six months ago and met with lawmakers to discuss issues with Ford. general motors and the Alliance for Automotive Innovation, a trade group representing most of the major U.S. automakers before the bill is introduced in late December/early January.
Hall said GM and the alliance’s request would allow automakers to display vehicle prices as long as dealers set prices and automakers can maintain a regular inventory of vehicles. It said the wording of the bill had been amended for clarity. Where dealers can buy inventory.
A GM spokeswoman commented to the Alliance. An Alliance spokesman declined to comment on Virginia’s bill, but said industry groups were not opposed to the bill.
Mr Hall said: Go through this process. ”
https://www.autonews.com/dealers/virginia-may-block-automakers-negotiating-buyers Virginia law aims to prevent direct sales