WA SB5377

Removes an existing exemption that allowed manufacturers holding a Washington vehicle dealer license as of January 1, 2014 to own and operate dealerships selling only their own makes/lines not sold by independent franchise dealers

Maintains existing prohibitions preventing manufacturers from competing with franchised dealers by owning, operating, or controlling dealerships, with limited exceptions for temporary ownership during transitions (up to 2 years) and diversity programs

Preserves exceptions allowing truck manufacturers selling vehicles over 12,500 pounds gross weight to operate dealerships if continuously engaged in retail sales since January 1, 1993

Caps manufacturer-operated dealerships under joint ownership arrangements at 4% of their total franchise count in Washington state

Takes effect January 1, 2026