Global Automakers submitted written testimony to the Delaware Senate Banking, Business and Insurance Committee's May 2 hearing to discuss SB 159, a bill that seeks to implement numerous substantive and wide-ranging changes to Delaware’s automobile franchise law. Global Automakers opposes several provisions in the bill as they will unnecessarily increase costs for consumers and only serve to benefit dealers, including:
- prohibiting manufacturers from recovering their compliance costs in connection with providing warranty reimbursements to dealers.
- prohibiting a manufacturer from denying a warranty claim or charge back the dealer’s account based on a dealer’s failure to comply with a manufacturer’s claim documentation procedures unless certain conditions are met
- prohibiting a manufacturer from denying a claim, reduce compensation to a dealer or charge back a dealer unless it can be shown that the claim was false or fraudulent or that the dealer failed to reasonably substantiate the claim in accordance with a manufacturer’s reasonable written procedures or by other reasonable means.
- concerning dealer terminations by moving jurisdiction over termination disputes from the courts to the Public Service Commission
- concerning post-termination obligations by extending a manufacturer’s obligations to voluntary terminations.
- provisions regarding compensation for used vehicles subject to recall
- regulate how manufactures must allocate vehicles to dealers.
- providing that this chapter shall apply to all written agreements between a manufacturer and a dealer, including franchise agreements, letters of intent, sales of goods, leases or deeds of trust of real or personal property, insurance contracts (and any other contracts).