GNYADA April 2016 Newsletter

Dealer Obligations Contained in Latest Federal Highway Bill 4

The highway bill signed into law by the President in December contains provisions relating to vehicle recalls that dealers should be aware of. The first provision requires dealers to check for open recalls on any on- brand vehicle brought in for service.

compensation for recall repairs from dealers who neglect to do this.

more rental vehicles in their fleet in a calendar year to ground any recalled rental vehicles until the recall is remedied. The U.S. Secretary of Transportation is still developing these regulations, and we will inform members once they are finalized.

Dealers should direct their service advisors to check for open recalls whenever a vehicle they are fran- chised to sell is brought in for service work.

Per the highway bill, manufacturers would be permitted to withhold fair

The second provision requires rental car companies who average 35 or

Supreme Court Upholds CT Warranty Reimbursement Law Decision sets positive precedent for NYS dealers

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The U.S. Supreme Court recently denied a petition put forth by the Alliance of Automobile Manufacturers, asking the Court to overturn an appeals court decision that dismissed the Alliance’s lawsuit seeking to strike down Connecticut’s new vehicle warranty reimbursement law. The U.S. Supreme Court decision is the culmination of a three-year court battle defended by the Connecticut Automotive Retailers Association (CARA) and the Connecticut Attorney General, on behalf of the

State, with assistance from NADA.

The Supreme Court’s refusal to hear the case and the underlying courts’ decision to dismiss the Alliance’s lawsuit is very encouraging for other states whose franchise laws provide for warranty reimbursement, which includes New York. The Connecticut law, like New York’s, was passed to protect dealers against unfair treatment by manufac- turers on warranty claims. Had the Alliance prevailed in the Connecticut litigation, all state motor vehicle fran- chise laws would have been subject to legal attack.

CARA, represented by Richard Sox of Bass Sox Mercer, intervened in the case to defend the Connecticut fran- chise law. The Alliance challenged the constitutionality of Connecticut’s warranty reimbursement law, alleging that it violated the Commerce Clause, Contracts Clause and Due Process Clause. The Alliance argued that the CT law unfairly raised automakers’ costs of doing business in the state. Ultimately, neither court agreed with these positions.

Welcome New Members

New Dealers:

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Vanguard Dealer Services NextGear Capital

Fiat of Brooklyn Infiniti-Nissan of Manhattan Island Volkswagen Nissan of Mt. Kisco Rockland Nissan Rockville Centre GMC

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Business Networks Cablevision Media Sales Micro Graphic Information

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We’re proud to welcome some of the newest members to the GNYADA family:

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Services - Autotrieve

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

The Newsletter • April 2016 3