Again this year, several dealer associations have sought BSM’s assistance in updating their state franchise protections. The focus for the 2023 legislative session in these states is to address issues such as (i) manufacturer involvement in the retail sale of vehicles; (ii) over-the-air subscriptions; (iii) manufacturer changes to vehicle allocation systems; and (iv) manufacturer direct sales.

With some manufacturers using the sale of electric vehicles as an excuse to materially and adversely alter the franchise system, it is more important than ever for dealers and dealer associations to insure that state franchise laws are updated to address these latest challenges to the viability of the dealer network.