Senate Bill 1169 Summary

• Amends Michigan's Motor Vehicle Franchise Act to strengthen protections for new motor vehicle dealers against manufacturer practices, including restrictions on coercion, unfair termination, and unreasonable performance standards.

• Prohibits manufacturers from requiring dealers to purchase unwanted inventory, advertising materials, or facility improvements; requires compensation for warranty and recall work at reasonable rates based on prevailing wages and retail pricing.

• Establishes procedures for dealer succession rights for family members and executive managers upon death or incapacity, with manufacturers limited to refusing succession only for good cause under defined standards.

• Regulates manufacturer practices regarding dealer relocation, new dealer establishment, and vehicle allocation by requiring notice to existing dealers and allowing court challenges on "good cause" grounds.

• Creates new compensation requirements for dealers with vehicles subject to stop-sale orders due to recalls when parts are unavailable for 30+ days, and strengthens dealer protections against chargebacks and claim denials by requiring manufacturer meetings and limiting review periods.