New Jersey Senate Bill S3270

New Jersey 2022-2023 Regular Session

• Introduced: 10/31/22
• Refer: 10/31/22

Caption

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

Impact

The impact of S3270 is significant as it modifies existing laws that govern the relationship between motor vehicle manufacturers and dealerships. By allowing manufacturers to sell directly to consumers, it opens the door for more competition and potentially lower vehicle prices for consumers. However, the requirement that manufacturers maintain at least one service location may safeguard some local dealership interests by ensuring that consumers have access to servicing options without solely depending on traditional dealerships.

Summary

Bill S3270 focuses on enhancing the sales flexibility for manufacturers of zero emission light-duty trucks in New Jersey. It allows manufacturers, designated as franchisors in the text, to directly purchase from and sell to consumers at up to four locations within the state. This is in contrast to existing regulations that typically restrict sales to franchised dealerships. Additionally, manufacturers are mandated to operate at least one retail service facility for servicing these vehicles in New Jersey. This initiative is aimed at streamlining the process and increasing accessibility to zero emission vehicles for consumers.

Contention

Notably, S3270 preempts any local rules or regulations that would limit a manufacturer's ability to sell directly to consumers. This aspect may raise concerns among local governments and established dealerships regarding the preservation of local business practices and maintaining a diverse automotive market. Opposition may stem from fears of reduced consumer choice or challenges facing small franchised dealerships, which could be impacted by a shift towards direct sales models that favor larger manufacturers.