Virginia House Bill HB2468

Virginia 2023 Regular Session

• Introduced: 1/20/23
• Refer: 1/20/23

Caption

Dealership operation by manufacturer; determination of no independent dealer to operate franchise.

Impact

The impact of HB 2468 on state laws is significant as it aims to create a clearer regulatory environment for motor vehicle manufacturing and dealership operations. By formalizing the rules around manufacturer ownership of dealerships, the bill addresses concerns about market competition and consumer access to vehicle services. The legislation attempts to strike a balance between protecting independent dealerships and allowing manufacturers to maintain some level of operational control when necessary.

Summary

House Bill 2468 seeks to amend the existing laws regarding the operation of motor vehicle dealerships in Virginia, primarily focusing on the conditions under which manufacturers can own or control dealerships. The bill outlines the legal framework that prohibits motor vehicle manufacturers from operating their own dealerships while allowing certain exceptions under specified circumstances. One key provision permits manufacturers to operate a dealership temporarily during ownership transitions and includes specific criteria that allow for manufacturer-operated dealerships if no independent dealership is available in the community.

Contention

However, the bill has sparked discussions among stakeholders, particularly regarding the implications of the exceptions it allows. Critics argue that allowing manufacturers to operate their own dealerships could lead to diminished competitive standards within the automotive market. They express concern that this could result in a monopoly-like environment where consumers have fewer choices and independent dealers struggle to survive against manufacturer-owned operations. Proponents of the bill assert that such provisions are essential to ensure service continuity in areas lacking independent dealerships, thus serving the public interest.