New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A4671

Introduced
9/29/22  

Caption

Removes certain limitations on manufacturers regarding direct sale of zero emission light-duty trucks to consumers.

Impact

The passage of A4671 would significantly alter the landscape of vehicle sales in New Jersey by enabling manufacturers to bypass the traditional franchised dealership model, which has been a longstanding part of the automotive sales framework. This change could lead to an increased competition among sales models, providing consumers more options for purchasing zero emission vehicles directly from manufacturers. However, it still maintains necessary service oversight by requiring franchisors to operate a service facility, thus addressing concerns about consumer support and maintenance for these vehicles.

Summary

Assembly Bill A4671 seeks to amend current New Jersey laws to facilitate the direct sale of zero emission light-duty trucks by manufacturers to consumers. Specifically, it allows manufacturers, defined as 'franchisors,' to buy from and sell zero emission light-duty trucks up to four business locations within the state. Furthermore, it mandates that these manufacturers maintain at least one retail facility capable of servicing these trucks, inclusive of warranty services, underscoring the state's push toward supporting electric vehicle infrastructure and accessibility while maintaining some regulation on the sales process.

Contention

While the bill is positioned as a step towards promoting environmental sustainability through increased adoption of zero emission vehicles, it may ignite contention among traditional auto dealers who could feel threatened by direct sales from manufacturers. The weakening of franchised dealerships could lead to a diminished role for these businesses in the auto market, prompting pushback from dealership associations concerned about job losses and market destabilization. Consequently, stakeholders from both the automotive industry and environmental groups may have varying opinions on how this legislative change will shake out.

Additional_analysis

The bill also aims to align New Jersey's vehicle sales regulations with broader trends toward electric vehicular technology and state-level sustainability goals. As more states prioritize emission reductions, A4671 places New Jersey in a proactive position to lead by example in zero emission vehicle adoption. However, the long-term effects on dealership viability and job retention will need to be monitored closely, as the state navigates its objectives in both economic growth and environmental stewardship.

Companion Bills

NJ S3270

Same As Removes certain limitations on manufacturers regarding direct sale of zero emission light-duty trucks to consumers.

Similar Bills

NJ S1281

Removes certain limitations on manufacturers regarding direct sale of zero emission light-duty trucks to consumers.

NJ A2997

Removes certain limitations on manufacturers regarding direct sale of zero emission light-duty trucks to consumers.

NJ S3270

Removes certain limitations on manufacturers regarding direct sale of zero emission light-duty trucks to consumers.

NJ A5604

"End Tesla Exception Act"; repeals statute permitting Tesla and other zero emission vehicle manufacturers to sell vehicles directly to consumers.

NJ A2752

Revises law concerning the rights and responsibilities of motor vehicle franchisees and franchisors.

NJ A1288

Revises law concerning the rights and responsibilities of motor vehicle franchisees and franchisors.

NJ S3309

Establishes "Motor Vehicle Open Recall Notice and Fair Compensation Act."

NJ A4380

Establishes "Motor Vehicle Open Recall Notice and Repair Compensation Act"; revises motor vehicle franchise agreements.