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:

  1. prohibiting manufacturers from recovering their compliance costs in connection with providing warranty reimbursements to dealers.
  2. 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
  3. 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.
  4. concerning dealer terminations by moving jurisdiction over termination disputes from the courts to the Public Service Commission
  5. concerning post-termination obligations by extending a manufacturer’s obligations to voluntary terminations.
  6. provisions regarding compensation for used vehicles subject to recall
  7. regulate how manufactures must allocate vehicles to dealers.
  8. 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).