Our Commitment to Protecting California’s Franchised Dealers By Autumn Heacox, Director of Communications & Marketing, CNCDA For a century, the mission of the California New Car Dealers Association (CNCDA) has been to protect and promote the state’s franchised new car and truck dealers to ensure a fair and thriving industry for our members and California’s motoring public. Our dedicated staff diligently monitors legislative changes, advocates on your behalf and provides valuable resources, support, updates and events. We are committed to ensuring our members can focus on what they do best: running successful dealerships while serving their customers and communities. CNCDA’s efforts to safeguard the integrity of the franchise system have led to significant legislative victories and milestones. We work with lawmakers, policymakers and industry partners to ensure that the rules governing California’s franchised new car and truck dealers are fair and balanced. Our successful championing of this critical legislation has protected the integrity of the franchise system and enabled our members to thrive in what many consider a challenging statewide business climate. This track record not only serves as a national model for automobile dealer associations but also ensures fairness, transparency and accountability for our members. Here are some recent examples: • AB 473 (2023): This landmark legislation, the first of its kind in the nation, modernized California’s motor vehicle franchise laws. It holds manufacturers accountable for excessive dealership requirements and, most importantly, prevents competition amongst their own dealers. Other provisions preserve manufacturer fairness, transparency and accountability to our members. This was an enormous win for our dealers and a testament to our commitment to serving our members. • AB 179 (2019): CNCDA’s success with AB 179 mandated that manufacturers honor warranty agreements and fairly compensate dealers for labor, parts and associated costs. The bill required manufacturers to file a reasonable warranty reimbursement schedule, including hazardous material disposal costs. This victory continues to deliver significant financial savings, directly benefiting our members, even today. • Franchise Law Updates (2009, 2011, 2013): In 2013, CNCDA made additional franchise law updates, providing a rebuttal presumption for dealers who sold or leased an exported vehicle. It restricted the exorbitant dealer performance standards and modified warranty repair and incentive rules, providing a right to cure, a 15-day written notice of changes to warranty reimbursement schedules, and limited audit requirements of records to nine months. In 2011, CNCDA successfully prohibited waivers of dealer protection rights, reduced unfair competition against dealers by factory‑owned stores, and prohibited mandates for the use of factory-approved vendors for service contracts and GAP agreements. In 2009, CNCDA conformed California to the rules in most states regarding termination assistance, multi‑brand dealership operations, facility improvements and statutory indemnity. Beyond our commitment to advocate for dealers’ rights, CNCDA provides members with several other resources so they can remain focused on their business: • Compliance Resources: Keeping dealers compliant with state and federal regulations through comprehensive guides and manuals. • Legal Assistance: We provide expert legal advice and support on franchise law and other regulatory issues. Our member-only legal hotline assists with matters ranging from advertising to HR and everything between; we’re here to answer your questions. 26 California New Car Dealer Quarterly
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