Representatives of franchised new-car dealers and major automakers told the Joint Committee on Consumer Protection and Professional Licensure their industries oppose several sections of Senate Bill 201 and House Bill 406 that would alter how dealers are reimbursed for warranty repairs and make other changes to franchise law.

Bob Okaneski of the Massachusetts State Auto Dealers Association, which represents franchised dealers, said dealers have worked with manufacturers to establish reimbursement formulas under chapter 93B of state law and urged legislative attention to manufacturer compliance with existing standards. Kathleen Genova, general counsel for Subaru of New England, opposed the proposed amendments and said the current 93B framework — including a 1.5-times flat-rate provision tied to standardized time guides — already provides remedies.

Manufacturers and industry groups pushed back sharply on a separate provision that would require using third‑party time guides or multipliers to set warranty labor allowances. Elizabeth Sillan of Volvo Cars USA, Wayne Weichel of the Alliance for Automotive Innovation, and other OEM representatives said manufacturers create detailed time guides using controlled workshop studies, add allowances for nonrepair activities, and maintain fast processes for dealers to request additional time when repairs exceed standard allowances. “Our retailers can go in and put in that hour to make sure that they're always getting paid for the work that's done,” Sillan said. Wayne Weichel estimated that the labor‑time change in section 2 could cost roughly $155 million per year in Massachusetts and billions nationally if replicated across the country.

Dealer advocates and some independent dealers argued separate proposals — such as clarifications about warranty reimbursement at retail rates for parts and labor on recall work — are meant to ensure fair pay for local service providers. The committee heard a range of perspectives but did not take a vote on the franchise or reimbursement proposals during the hearing.