Georgia Senate Bill SB184

Georgia 2023-2024 Regular Session

• Introduced: 2/15/23
• Refer: 2/16/23

Caption

New Dealers; prohibition on ownership, operation, and control of motor vehicle dealerships by certain manufacturers; repeal an exception

Impact

If enacted, SB184 would significantly impact the regulatory landscape for motor vehicle dealerships in Georgia, specifically altering Code Section 10-1-664.1. The bill would prohibit manufacturers and franchisors from owning, operating, or controlling dealerships within a specific proximity to existing dealers of the same line make. By eliminating previous exceptions, the bill aims to protect independent dealerships from potential competitive disadvantages posed by manufacturers who might seek to dominate the market through direct dealership ownership.

Summary

Senate Bill 184 seeks to amend Georgia's laws pertaining to the ownership and control of motor vehicle dealerships by manufacturers and franchisors. The bill aims to repeal an existing exception that currently allows certain manufacturers to own or operate dealerships, potentially leading to unfair competitive practices in the marketplace. This change is focused on ensuring that manufacturers do not exert undue influence over new motor vehicle dealers, thereby promoting fair competition within the automotive retail sector.

Conclusion

The discussions and evaluations of SB184 reflect ongoing debates about market control, competition laws, and the role of manufacturers in the retail distribution of motor vehicles. Should the bill be passed, it could reshape the dynamics of the automotive sales landscape in Georgia, empowering independent dealerships while placing new restrictions on manufacturers. Stakeholders across the automotive industry will likely closely monitor the bill's progress and ramifications.

Contention

Discussions surrounding SB184 have highlighted concerns over the balance between manufacturer interests and independent dealership rights. Proponents argue that the bill is essential for maintaining a competitive and fair market environment, ensuring that consumer choices are not limited by manufacturer dominance. Conversely, opponents may raise concerns about the implications for manufacturers who have historically operated dealerships under exemptions, arguing that the bill could lead to unintended consequences that might stifle innovation or consumer access to certain brands.