Virginia 2022 Regular Session

Virginia Senate Bill SB216

Introduced
1/10/22  
Refer
1/10/22  
Report Pass
1/27/22  
Engrossed
2/1/22  
Refer
2/22/22  
Report Pass
2/24/22  
Enrolled
3/3/22  

Caption

Motor vehicle dealers and manufacturers; compensation for recall, warranty, and maintenance.

Impact

The impact of SB216 on state law is significant as it directly modifies §46.2-1571 of the Code of Virginia. This amendment enforces strict obligations on manufacturers regarding the compensation and indemnification of dealers for various aspects related to motor vehicle sales, including service and maintenance. It seeks to create a more fair environment for vehicle dealers, particularly in handling warranties and recalls, thus enhancing consumer confidence in vehicle service practices.

Summary

SB216 is aimed at enhancing the obligations and protections for motor vehicle dealers in Virginia, particularly concerning compensation for warranty and recall services. The bill establishes clear guidelines for manufacturers and distributors to compensate dealers for recall work and warranty-related services, ensuring that the payments are no less than what dealers would charge their retail customers for similar services. This change is positioned as a necessary step to protect dealers financially and uphold their ability to provide appropriate services to customers.

Sentiment

The sentiment around SB216 appears favorable among dealership operators and advocates who see it as a necessary progression toward fair treatment by vehicle manufacturers and distributors. Supporters argue that the bill will alleviate financial burdens and legal liabilities that dealers often face. However, there may be concerns from manufacturers about the potential increase in operational costs and responsibilities, highlighting a divide in the industry regarding the balancing act between dealer support and manufacturer control.

Contention

Notable points of contention include the potential increase in operational burdens and costs for vehicle manufacturers and the extent to which the bill may limit their flexibility in managing dealer relationships. Critics may raise concerns regarding the economic impacts on manufacturers, suggesting that such stringent regulations could lead to reduced profitability or changes in business models. There may also be discussions about how these obligations might affect the pricing structure of vehicles and services offered to consumers.

Companion Bills

VA HB259

Same As Motor vehicle dealers and manufacturers; compensation for recall, warranty, and maintenance.

Previously Filed As

VA HB259

Motor vehicle dealers and manufacturers; compensation for recall, warranty, and maintenance.

VA SB1308

Motor vehicle dealers; recall and warranty costs, right of first refusal.

VA HB1683

Motor vehicle dealers; recall and warranty costs, right of first refusal.

VA HB4078

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.

VA SB2099

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.

VA SB1917

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

VA HB3859

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

VA HB1515

Motor vehicle warranty work compensation.

VA HB90

Motor vehicle dealers, warranty service by dealers paid by manufacturers, reasonable compensation to be paid, determination procedures, Sec. 8-20-7 am'd.

VA SB52

Motor vehicle dealers, warranty service by dealers paid by manufacturers, reasonable compensation to be paid, determination procedures, Sec. 8-20-7 am'd.

Similar Bills

VA HB259

Motor vehicle dealers and manufacturers; compensation for recall, warranty, and maintenance.

VA HB1683

Motor vehicle dealers; recall and warranty costs, right of first refusal.

VA SB1308

Motor vehicle dealers; recall and warranty costs, right of first refusal.

TX HB3859

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

TX SB1917

Relating to motor vehicle franchised dealers and the reimbursement of motor vehicle franchised dealers by manufacturers and distributors for warranty, recall, over-the-air, and preparation and delivery work.

TX HB4078

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.