Relating to the ownership or operation of a motor vehicle dealership by certain manufacturers or distributors.
Impact
The adjustments made by SB639 would significantly alter the landscape of motor vehicle sales in Texas by providing more opportunities for manufacturers to establish direct sales outlets. This would enable manufacturers to have greater control over their sales processes. The changes could potentially lead to increased competition in the market, benefiting consumers through potentially lower prices and more choices. However, it may also disrupt the traditional franchised dealership model, leading to conflicts of interest and competition between existing dealerships and manufacturers directly selling their vehicles.
Summary
Senate Bill 639 proposes amendments to the Occupations Code and Transportation Code regarding the ownership and operation of motor vehicle dealerships by certain manufacturers or distributors. The bill allows manufacturers or distributors to own and operate dealerships under specific conditions, namely that they do not own more than 12 dealership locations within Texas and that the manufacturer's line-make has not previously been sold in the state through an independent franchised dealership. This aims to facilitate broader market access for certain vehicle manufacturers while still maintaining some limitations on dealership ownership.
Contention
The bill may face contention due to concerns about the implications for existing franchised dealerships. Stakeholders within the dealership community might argue that allowing manufacturers to operate their own dealerships undermines the franchise model and could lead to a reduction in business for independent dealerships. Furthermore, opponents of the bill may express concerns over consumer protections, as direct sales from manufacturers might not adhere to the same standards as independent dealers, impacting service and warranty provisions.
Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.
Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, and preparation and delivery work.
Relating to the issuance of certain tags, permits, and license plates authorizing the movement of vehicles and the transfer and renewal of certain license plates.