Global Automakers submitted written testimony to the Colorado Senate Business, Labor, & Technology Committee's April 16 hearing to discuss SB 219, a bill that proposes the complete overhaul to Colorado’s warranty reimbursement statute. Global Automakers opposes several provisions in the bill as they will unnecessarily increase costs for consumers and only serve to benefit dealers, including:
- extending manufacturers' obligation to pay dealers their retail rate well beyond warranty work and encompasses a number of additional categories of manufacturer-paid repairs and service.
- limiting manufacturers' right to challenge a dealer’s warranty reimbursement request only if the submission was materially inaccurate.
- prohibiting manufacturers' from auditing a dealer’s records.
- allowing dealers to be compensated for a parts markup for parts used in performing warranty work even if the manufacturer or distributor provided the parts to the dealer at no cost.
- allowing a court to award a prevailing dealer up to two times its actual damages.
Under current law, a manufacturer “shall reasonably compensate any authorized dealer who performs work to rectify said manufacturer’s product or warranty defects.” Colo. Rev. Stat. § 12-6-114. This provision adequately and fairly compensates dealers for warranty work. It does not need a drastic and complete overhaul.