GNYADA April 2016 Newsletter

Scion’s Discontinuance Is a Reminder to Dealers NY Franchise Law Protects Members during Brand Closures

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Reimbursement (on a sliding scale based upon date of installation) for Scion kit cost. Coordination and payment for the cost of modifying brand signage, including the monolith and dealer- ship fascia signage. Further Protections Available under New York Law Although these benefits are both welcome and necessary, under New York law, the discontinuance of a line-make obligates the manufac- turer to also pay for the following:

Toyota Motor North America (TMNA) announced the end of its Scion brand in February. Thanks to GNYADA’s successful updates to the Franchised Motor Vehicle Dealer Act, regional Toyota dealers have legal rights in place in the event of such a brand closure. These rights entitle any dealer who sells a discontinued brand to valuable benefits beyond what’s offered by the manufacturer. In its communication, Toyota informed Scion dealers that Scion vehicles will be rebadged as Toyotas, starting with the 2017 model year. The manufacturer also indicated that it will offer the following: $10,000 to each store, to cover the removal of Scion branding. (Additional costs must be approved for reimbursement.) n

Supplies, parts, equipment, special tools and furnishings purchased pursuant to manufacturer require- ments. Facility renovations or remodeling required by the manufacturer com- pleted within three years of the discontinuance announcement.

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The amount remaining on the deal- ership’s management computer.

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System lease used for the brand (if applicable).

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Reasonable rental value associated with the franchise operations for one year. Scion dealers are encouraged to speak with their dealer lawyer to identify specific repurchase benefits and determine how to best make this request of TMNA. n

New, current model year vehicles in dealership inventory.

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New, noncurrent model year vehi- cles acquired from the manufactur- er within 180 days of the effective date of the termination.

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Body Shops Exempted from New OSHA Ruling

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OSHA has exempted automobile body shops, including those in New York State and City, from its newly-released rule gov- erning respirable crystalline silica, a hazardous mineral found in construction materials but sometimes also in body filler. The exemption shields dealerships from costly new mandates for workplace exposure control measures, exposure record- keeping and employee medical examinations. NADA successfully demonstrated to OSHA that the likelihood of exposure to respirable crystalline silica in a dealership body shop is so minor that they should be exempt from the rule. Body shops performing tasks consistent with normal work- place health and safety controls may rely on the exemption, which is based on recognition by OSHA that exposures will not exceed the new regulatory levels under foreseeable conditions.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • April 2016

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