Expanding the Definition of Manufacturer: The bill changes the definition of a motor vehicle manufacturer to include any affiliates (related companies) of the manufacturer.
Prohibiting Competition with Dealers: It clarifies that manufacturers are not allowed to own, operate, control, or compete against motor vehicle dealers, used motor vehicle dealers, or dealer-operated service centers in Colorado.
Changes for Manufacturer-Owned Dealerships:
Currently, manufacturers that only make electric vehicles and have no franchised dealers in Colorado are allowed to own dealerships.
This bill expands that exception to include any vehicle manufacturer (not just electric vehicles) as long as they have never had franchised dealers in the state.
In short, the bill tightens rules around manufacturer involvement in dealerships but allows companies that have never used the franchise model in Colorado to own and operate dealerships.
Summary
The bill amends the definition of a manufacturer of new motor
vehicles to include an affiliate of a manufacturer and defines the term affiliate.
The bill clarifies that the provision in current law prohibiting a
manufacturer from owning, operating, or controlling a motor vehicle dealer or used motor vehicle dealer in the state also includes competing against a motor vehicle dealer or used motor vehicle dealer. Further, the bill extends the prohibition to include motor vehicle dealer-operated service centers in the state.
Current law does not prohibit ownership, operation, or control of
one or more motor vehicle dealers by a manufacturer if the manufacturer manufactures only electric vehicles and has no franchised dealers of the same line-make in the state. Under the bill, the ownership, operation, or control of one or more motor vehicle dealers by a manufacturer is not prohibited if the manufacturer manufactures any vehicle and has never had franchised dealers of any line-make in the state.
