Committee hears bill to bar manufacturers from forcing dealers to take electric vehicles

Representative Randon Gregg (R), sponsor of House Bill 550, told the House Transportation Committee the bill is intended to “protect the autonomy of Montana's automobile dealers” by preventing manufacturers from coercing dealers into accepting electric vehicles or plug‑in hybrids.

Gregg said data supplied with the bill shows EVs remain on dealer lots longer than other vehicles: "As of July 24, 2024, EVs remained on dealer lots for an average of 81 [days], a 75% increase from the previous year," and he cited a November 2024 report noting a 114‑day supply of new EVs for dealers compared with a 71‑day supply for all vehicles. He added that a 60‑day supply is historically considered ideal and that some models — cited in testimony as the Ford Mach‑E — have averaged 204 days on lots.

The bill’s sponsor said the measure does not prohibit manufacturers from offering EVs and that dealers could still choose to sell them: "If a dealer wants to sell them, they absolutely can," Gregg said, adding the bill aims to keep the decision voluntary and dictated by market demand.

Josh Fisher, with the Alliance for Automotive Innovation, testified in opposition. Fisher argued the protections in current Montana law already prevent manufacturers from “dumping” unwanted vehicles on dealers and said HB 550 would interfere with private contracts and commerce. "When a dealer signs a sales and service agreement with the manufacturer, they're agreeing to sell the full lineup of models made by that manufacturer," Fisher said. He warned the bill could leave Montana consumers unable to purchase certain models locally and said, "For these reasons, we oppose the bill." The Alliance represents automakers that sell through franchise dealers; Fisher noted some direct‑sales companies such as Tesla and Rivian are not alliance members.

Committee members questioned sponsors and witnesses about the bill’s interaction with franchise agreements, dealer service obligations and practical effects on Montana consumers. Representative Staffman, who said he owns an EV and a plug‑in hybrid, asked whether limiting dealerships’ sales would reduce in‑state service jobs and tax revenue; Fisher replied that if consumers must buy out of state it could reduce state sales tax and dealer revenue. Representative Staffman and others also noted written testimony in the packet from General Motors expressing concern that the bill would "hamstring" automakers’ ability to provide EVs to Montana consumers; Fisher summarized that concern as a manufacturer‑view that HB 550 could deny access to a market for a manufacturer's product.

No proponents appeared in person or online beyond the sponsor; Fisher appeared online as an opponent. Committee staff indicated a letter from General Motors was part of the meeting packet and would be available with published minutes. The committee recessed after closing the hearing; no vote on HB 550 was taken.

The hearing record shows the primary issues raised were (1) dealer autonomy and rural market suitability for EVs, (2) whether current franchise law already protects dealers, (3) potential impacts on consumer access and in‑state economic activity, and (4) legal questions about contract rights under Montana and U.S. constitutional contract clauses.

The committee closed the hearing on House Bill 550 and recessed; no action was recorded on the bill at this meeting.