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Auto-dealer bill prompts requests to protect direct EV sales model for new manufacturers
Summary
A hearing on House Bill 2127A, which updates franchise rules between manufacturers and dealers, included industry witnesses supporting dealer protections and testimony from new electric vehicle maker Scout Motors urging an amendment to preserve direct-to-consumer sales by EV startups.
House Bill 2127A, offered by the Oregon Auto Dealers Association and reported from the House with 55 aye votes, was heard by the Senate Committee on Labor and Business on April 15. The measure would revise the legal framework governing franchise agreements between vehicle manufacturers, distributors and franchise dealers, setting standards for allocation fairness, consumer choice for delivery, facility upgrades, and protection against direct manufacturer competition with dealer investments.
Greg Remensberger, executive vice president of the Oregon Auto Dealers Association, told the committee the bill draws on model language used in other states (notably California) to protect rural and smaller…
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