HB347 Summary

• Amends Alabama's Motor Vehicle Franchise Act to expand protections for motor vehicle dealers by adding definitions, unfair practices provisions, and termination/buyback requirements applicable to manufacturer-dealer relationships.

• Adds "Line Make" definition and expands definition of "New Motor Vehicle" to include engines, transmissions, and rear axles for vehicles over 16,000 pounds; requires good faith conduct from all parties.

• Prohibits manufacturers from engaging in 26 categories of unfair and deceptive trade practices including coercion, discriminatory allocation, exclusive facility requirements, arbitrary performance standards, and restrictions on dealer ownership changes.

• Requires manufacturers to provide 90-day notice (30 days in certain circumstances) before terminating or refusing to renew franchises, and establishes "good cause" standards; dealers retain franchise rights during litigation challenging termination.

• Mandates manufacturers repurchase dealer inventory, parts, equipment, tools, and facilities at net cost or fair market value upon termination, and pay fair compensation for franchise value when line makes are discontinued; extends warranty service compensation protections.