Bill > HB2127

This bill modifies Oregon's motor vehicle dealer franchise laws to provide additional protections and clarify requirements for relationships between vehicle manufacturers (franchisors) and dealerships (franchisees). The bill makes several key changes, including: prohibiting manufacturers from charging fees for certain vehicle features or subscription services already installed in vehicles; requiring manufacturers to provide detailed explanations for vehicle allocation systems; mandating that manufacturers compensate dealers fairly for warranty repairs and parts; establishing new indemnification requirements where franchisors must protect franchisees from certain legal claims related to vehicle defects or manufacturer-mandated procedures; restricting how and when manufacturers can require facility upgrades or renovations; and creating more transparent processes for dealer transfers, assignments, and sales. The bill also updates definitions of key terms like "dealer," "franchise," and "manufacturer" to use more precise language, and adds provisions to prevent manufacturers from unfairly coercing dealers or reducing their compensation. These changes aim to balance the power dynamics between vehicle manufacturers and their dealership networks, providing dealers with more legal protections and clearer guidelines for their business operations. The bill applies to new and renewed franchises from its effective date forward.

Business and Industry

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2127