Delaware General Assembly

PWB 5/21/24

The General Assembly has ended, the current status is the final status.

SB 278 -SA 1

5/21/24

Poore

This Amendment makes a number of changes to SB 278: The Amendment provides that "new motor vehicle dealer" or "dealer" includes manufacturers who are licensed by the Department of Motor Vehicles to sell or lease new motor vehicles directly to customers. This revises SB 278, which included in the definition of "new motor vehicle dealer" or "dealer" only those manufacturers who were licensed by the DMV prior to August 1, 2023. The Amendment provides that a manufacturer violates Chapter 49 by refusing to accept the return of or fully reimburse the dealer for the cost of parts, tools, and other equipment or infrastructure required under the franchise agreement or as part of a policy or program related to the sale or service of electric motor vehicles, if the dealer can demonstrate that the volume of electric motor vehicle sales is inadequate to allow the dealer to realize a reasonable return on the investment over the useful life of the part, tool, or other equipment or infrastructure. SB 278 did not require the dealer to make this demonstration. The Amendment reduces, from 20% to 8% of the percent of gross revenue from the manufacturer or distributor's sale directly to a retail customer of a motor vehicle accessory, option, or similar, that the manufacturer or distributor is required to pay to a franchised new motor vehicle dealer for cars sold within the 5-year period preceding the sale of the accessory or option. In addition, the Amendment reduces the number of new motor vehicle dealers or motorcycle dealers required to be members of an association in order for the association to have standing to pursue collective action and removes language concerning what constitutes a cognizable injury for purposes of collective action. The Amendment provides that a manufacturer or distributor is not considered a "dealer" or "motor vehicle dealer" for purposes of Title 21, unless the manufacturer or distributor is licensed as a motor vehicle dealer. This revises SB 278, which provided that only a manufacturer or distributor licensed before May 15, 2023 would be considered a "dealer" or "motor vehicle dealer." The also Amendment prohibits manufacturers, importers, and distributors from owning a dealership in Delaware if the manufacturer, importer, or distributor has manufactured, imported, or distributed motor vehicles of any line make that have been or are offered for sale within the state under a franchise agreement with an independent person.

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