SB267 Summary: Motor Vehicle Franchise Act Amendments

• Expands definition of "new vehicle" to include engines, transmissions, and rear axles for vehicles over 16,000 pounds gross weight rating and adds definition of "line make" allowing multiple brand names under common dealer agreements.

• Adds extensive unfair and deceptive trade practice prohibitions including restrictions on coercion regarding vehicle purchases, facility requirements, performance standards, price discrimination, dealer transfers, and manufacturer ownership of dealerships.

• Requires manufacturers to provide 90 days' notice (or 30 days in specified circumstances) before terminating, canceling, or failing to renew dealer franchises and establishes "good cause" standards based on material breach of franchise provisions.

• Mandates manufacturer compensation to dealers upon termination for vehicle inventory at net cost, parts and supplies at net cost, equipment and special tools at fair market or depreciated value, facility upgrades, and franchise value when line makes are discontinued.

• Requires fair and reasonable warranty service compensation to dealers, prohibits unreasonable claim disapprovals, and limits manufacturer chargebacks for fraudulent claims to 12 months from payment date.