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Franchise Practices Act Legislation Faces Fight From Manufacturers

Apr 08, 2011

Despite overwhelming legislative support, NJCAR-backed amendments to the NewJersey Franchise Practices Act, are facing vehement opposition from manufacturers. NJ CAR has learned that auto manufacturers are lobbying aggressively to have Governor Christie veto the legislation. While this is unlikely given the series of unanimous Committee and Floor votes that brought this bill to the Governor’s desk, the bill has not yet been signed and the Governor does hold veto power over the legislation. A-3722 was introduced January 11, 2011, reported from Committee on January 20, 2011 and passed by the General Assembly 78-0 on March 14, 2011. A nearly identical bill was introduced in the Senate February 17, 2011, reported from Committee March 3, 2011 and approved by the full Senate on March 21, 2011 by another unanimous vote of 36-0. NJ CAR has been working with legislators on both sides of the aisle to develop a legislative proposal that will effectively clarify and reinforce certain key provisions of existing law. The goal is to protect the investment that dealers have in their businesses, to protect local jobs and the communities that rely on neighborhood new car dealers for economic and civic support, and to protect the consumer interest in an extensive network of independent franchised auto dealerships. NJ CAR will keep dealers apprised of further developments in the Governor’s office as they occur.