Bill > S295

This bill clarifies and strengthens various motor vehicle dealer laws in North Carolina, providing additional protections and regulations for dealerships in several key areas. The bill restricts manufacturers from conditioning franchise approvals on unreasonable requirements, such as forcing dealers to build new facilities or acquire/divest specific vehicle lines. It also establishes new provisions for dealer transfers and succession, including limiting manufacturers' ability to reject proposed executive management changes by requiring specific proof of poor performance. The bill expands definitions of "selling" and "motor vehicle dealer" to include new scenarios like vehicle subscription programs and warranty services. Additionally, the bill introduces new requirements for manufacturers regarding over-the-air product sales, warranty reimbursement, loaner vehicle compensation, and handling of unfinished vehicles. For example, manufacturers must now provide dealers with compensation schedules for remotely activated vehicle features and reimburse dealers fully for loaner vehicles during repairs. The legislation aims to create more equitable business practices between manufacturers and dealerships, protecting dealers from arbitrary actions and ensuring fair compensation and treatment.

Business and Industry, Government Affairs, Justice, Transportation and Infrastructure

https://www.ncleg.gov/BillLookUp/2025/S295