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Dealer franchise bill passes another hurdle in California

California Gov. Jerry Brown would have until Sept. 30 to veto or sign the bill into law if it is approved. A wide-ranging California bill that would change the state's dealer franchise law is one step closer to passage after approval by the state Senate Wednesday night. The measure awaits a vote of the state Assembly. Brian Maas, president of the California New Car Dealers Association, which is lobbying for the legislation, said he is "optimistic" the Assembly will pass the bill before the California Legislature recesses at midnight Friday. A previous version of the bill had passed the Assembly in May. "We're obviously not counting anything before it's achieved but we're optimistic that the Senate and the Assembly are going to approve the measure this week," Maas told Automotive News on Wednesday. If approved, California Gov. Jerry Brown has until Sept. 30 to veto or sign the bill into law. If no action is taken, the bill becomes law. If the bill i...

Auto subscriptions programs face hurdle in state laws

With vehicle subscription plans such as Book by Cadillac and Care by Volvo gaining momentum and clientele, some states are scrutinizing the models and their implications for dealership franchise laws and state revenue streams. It has led to a temporary ban on subscription programs in Indiana and an on-hold proposal in California that would have required that any automaker subscription plan go through its dealers. They are among the first states to look at how to treat vehicles in the growing number of subscription programs offered by manufacturers and dealers — or even whether regulation of the programs is necessary. New Jersey dealers also are seeking regulatory changes. Dealers want to make sure they're not left out of a new business stream and that their margins are protected for the long run, while automakers want to be able to offer mobility services and advanced technology to consumers absent new and complicated statutes and regulation. The differences in opinion could lead m...