RELATING TO THE MOTOR VEHICLE INDUSTRY LICENSING ACT.
Impact
The legislation significantly changes the existing framework by ensuring that manufacturers or distributors, following the sale of a motor vehicle through a dealer, can also charge consumers for activating or installing extra features directly on their vehicle via remote means. Notably, this includes a stipulation that if the vehicle was sold by a franchised dealer within the past five years, that dealer must receive at least 20% of the related revenue from these transactions. This provision aims to protect dealers' interests while encouraging competitive practices in the market.
Summary
House Bill 938 pertains to the Motor Vehicle Industry Licensing Act, aiming to modernize certain provisions and clarify the roles of manufacturers, distributors, and dealers in the motor vehicle market within Hawaii. One of the key features of the bill is the authorization for manufacturers and distributors to sell accessories, upgrades, and other features directly to consumers through remote electronic transmission, without requiring the intermediary of a dealer. This change reflects a shift towards greater accessibility for consumers regarding vehicle enhancements and features.
Contention
While the bill seeks to foster efficiency in the motor vehicle market, there are potential points of contention regarding its implications for the existing dealer-manufacturer relationship. Dealers may express concerns about the financial impacts of direct sales and the commission structure for remote services. Additionally, manufacturers are prohibited from forcing dealers to purchase electric vehicle charging stations unless prior notice of intent to sell electric vehicles is provided, which may lead to discussions on the adequacy of support for dealers transitioning to EVs.
Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.
Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.