Motor Vehicle Manufacturers, Importers, and Distributors and Franchised Motor Vehicle Dealers

The bill now explicitly covers motor vehicle manufacturers, importers, and distributors in addition to franchised dealers.

New provisions allow licensees to reject the succession of a franchise agreement to a legal heir or devisee if the heir fails to meet minimum qualifications or if the succession would violate other parts of the law.

Licensees are prohibited from distributing more than 33.33% of a specific line-make of vehicles to one dealer or to multiple dealers that share common ownership or control within a 12-month period.

The threshold for prohibiting wholesale sales to dealers was lowered from 3,000 vehicles to 1,000 vehicles, and the definition of independent dealers was adjusted to focus on equity control percentages.

New rules clarify that licensees cannot reject the sale or transfer of a franchise or equity interest unless the transferee lacks good moral character or the transfer would cause the licensee to violate the new distribution limits.