Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Automotive Policy topic
No spam. Unsubscribe anytime.
Auto groups clash over proposed change to dealer warranty reimbursement rules
Summary
Dealer and auto-industry witnesses offered opposing views on H4019: dealers seek adjustments to reimbursement formulas, while manufacturers and distributors warned that allowing aftermarket time guides would increase costs for consumers and manufacturers.
Representatives of the Massachusetts State Auto Dealers Association told the committee they are working with manufacturers and legislators to address recent changes in how manufacturers reimburse dealers for warranty and recall work and expressed support for seeking a workable solution.
Opposing that approach, David Bright of the Alliance for Automotive Innovation said H4019 would let dealers demand payment based on aftermarket time guides—tools designed for independent shops—and estimated the bill could create roughly $155,000,000 per year in additional costs in Massachusetts if manufacturers had to pay those higher time allowances. Kathleen Genova of Super of New England described the bill as "anti-consumer," arguing that independent-shop time guides typically allow higher time allowances and that using them for dealer warranty reimbursement could increase consumer costs.
Witnesses on both sides said they are open to continued negotiations; the committee did not take a vote and accepted further written materials for the record.
