HB 6498 Summary

• Amends Michigan's Motor Vehicle Franchise Act (1981 PA 118) to strengthen protections for new motor vehicle dealers against manufacturers and distributors.

• Prohibits manufacturers from terminating dealer agreements without good cause, notice, and good faith; requires consideration of local market conditions affecting dealer performance before termination.

• Restricts manufacturer requirements for facility construction, inventory purchases, advertising participation, vendor selection, and sign leasing; allows dealers to select alternative vendors if goods meet same quality standards and manufacturer approval is not unreasonably withheld.

• Establishes compensation requirements for warranty and recall repairs including reasonable parts markup and labor rates based on comparable dealers' retail rates; creates procedures for dealers to declare retail rates and dispute manufacturer chargebacks.

• Requires compensation at prorated rate of at least 1% monthly of vehicle value for dealers holding recalled vehicles subject to stop-sale orders when repair parts are unavailable beyond 30 days.